The EU pay transparency directive is on the horizon, with a 2026 deadline approaching fast for businesses in EU member states to comply. This requires companies to disclose pay ranges for job candidates, ban pay secrecy clauses, and take action on gender pay gaps. HR professionals need to get their ducks in a row to navigate this new landscape effectively.
Key Points
- The EU directive will require businesses to disclose salary information by 2026, boosting pay transparency across Europe.
- The directive bans pay secrecy clauses and requires action if gender pay gaps exceed 5%.
- UK organisations are already adapting to similar trends, with a noticeable increase in salary transparency in job advertisements.
- HR leaders are encouraged to adopt common pay transparency standards across all countries to ensure compliance and fairness.
- Organisational readiness involves auditing pay structures and ensuring clarity in compensation practices.
Why should I read this?
If you’re in HR or involved in organisational governance, this article is a must-read! The impending pay transparency directive will impact how you manage salaries and communicate with employees. Get ahead of the game by understanding these changes and preparing your organisation now, instead of scrambling later.