EUROPEAN UNION PAY TRANSPARENCY
Proactive and Comprehensive Consulting
With 27 European Union (EU) member states working to implement the Directive, each with their own timelines and specific requirements, EU employers face varied and steep pay reporting requirements in the near future. DCI helps international employers turn EU Pay Transparency requirements into clear, defensible pay decisions—before reporting becomes mandatory.
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What are employers required to report?
Under the EU Pay Transparency Directive, European employers will need to report the mean and median pay gap between men and women. Analyses should include both basic wage and complementary or variable pay. Where a gap of 5% or more exists that cannot be explained by objective factors and has not been resolved within six months, employers will need to submit a Joint Pay Assessment in partnership with employee representatives. In addition to reporting compensation analytics, there are several pay transparency requirements, such as publishing wage information in job advertisements.
When are reports due?
Deadlines for reports vary by employer size. Annual reporting must start by June of 2027 for organizations with 250 or more employees. Meanwhile, organizations with 150 to 249 employees must begin reporting every three years by June of 2027 and those with less than 150 employees must begin reporting every three years by 2031. However, member states may elect to begin requiring data earlier than the timeline determined by the Directive.
What does DCI deliver?
DCI will help your organization establish worker categories in accordance with the EU Pay Transparency Directive and conduct comprehensive gender pay gap analyses using regression or other appropriate statistical models to identify average compensation differences of 5% or more within those categories. We then assess whether those differences can be explained and conduct Joint Pay Analyses on pay gaps when required by the Directive. DCI can also provide targeted remediation strategies for impacted employee groups. All findings and recommendations can be delivered under attorney-client privilege in an executive report that positions your organization to make confident, defensible pay decisions before mandatory reporting deadlines arrive.
Why DCI?
We are the experts in pay equity and compliance. Since our founding 25 years ago, we've helped employers of all sizes and in every industry comply with regulations from the local to international level. We have been at the forefront of the pay equity space for more than two decades and, coupled with our Compensation Consulting team, can ensure the way you pay your workers is compliant with the requirements under the Directive and helps you attract and retain the talent you need to meet your business objectives.
Find out more about other DCI services.
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