Pay Transparency
The pay transparency directive requires employers to be open about the salaries of men and women performing equivalent work. If there is a pay gap of more than 5% in your company, you must take immediate steps to eliminate this difference. Employees who have been disadvantaged by pay discrimination are also entitled to compensation. Those who do not comply with the rules risk sanctions, including fines.
Read more: "EU Directive on Pay Transparency: these are the 5 requirements."
Read more: "Mandatory pay transparency from 2026: what you need to know as an employer"
Our tip : The European directive on pay transparency is a real gamechanger for employers. By 7 June 2026 your pay policy must be more transparent, legally sound and gender-neutral. This requires action. In our training you will learn how to prepare for a future-proof pay policy.
Register today: Pay Transparency: ready for the new legislation? | Securex.
Transparency before taking on the job
During the recruitment phase, you must inform candidates in good time about the starting salary or salary range, based on objective and gender-neutral criteria. At the same time, requesting the salary history of applicants is completely prohibited.
Transparency during employment
Also during employment, employees gain more insight into how their pay is determined and can develop. As an employer, you must make all criteria and pay levels clearly available. Furthermore, your employees may request information in writing about their own pay and the average pay per job category (broken down by gender).
The concept of “pay” is interpreted broadly and includes, besides the basic salary, premiums, bonuses and other benefits in kind (such as, for example, the company car).
Transparency about the salaries of all employees?
A common misconception is that employees will soon be able to see each other’s salaries.
In reality, they only gain more clarity about how their pay is structured and can develop, and as an employer you must explain those criteria clearly and accessibly. Your employees may request information in writing about their own pay and the average pay per job category, broken down by gender, but individual salaries will not be visible.
For large and small companies
The directive applies to every company that employs at least one employee. So even as a small company, you must comply with all provisions of the directive, except for the rules regarding reporting. The reporting obligation applies only to larger employers.
Reporting obligation
As a company, you must also share your pay policy in detailed reports. How often you must produce such a report and when the first report is expected depends on the size of your organisation.
- Do you have 250 employees or more? Then you must report on 2026 at the latest in 2027 and repeat this annually thereafter
- This also applies to companies with 150 to 249 employees, but they must report every three years
- Do you have 100 to 149 employees? Then you must report on 2030 at the latest in 2031 and repeat every three years thereafter
- Do you have fewer than 100 employees? Then you are not obliged to report, but you may always do so voluntarily.
If your report shows that the pay gap is more than 5% without you being able to objectively justify the difference, you must draw up an action plan in cooperation with the employee representatives.
Sanctions
You must fully compensate employees who experience pay discrimination, including overdue pay, bonuses and benefits in kind. Due to the reversed burden of proof, you must show that your pay policy is gender-neutral and transparent. Review this carefully now to avoid problems and sanctions later.
Don’t wait until June.
Do not wait until the directive is fully transposed. Start now to determine what your company needs to comply with the new obligations: establish clear job categories, analyse or update your pay system, carry out the necessary simulations, review your recruitment policy and ensure everything is well documented.
What does Securex do for you?
Do you have questions about this directive or your pay policy and how to make it transparent? Securex can help you with this. For more information, you can contact consultinglegal@securex.be.
