Why do we even need a new EU Pay Transparency Directive? After all, “equal pay for equal work” has been enshrined in law for decades. The blunt truth: because the reality still doesn’t match the principle. Across the EU, the gender pay gap remains at around 13%, largely due to hidden structures that employees cannot easily see or challenge.
This Directive aims to change that. By forcing companies to disclose pay structures and giving employees a real right to information, it creates the foundation for a cultural shift: pay fairness becomes measurable and actionable.
Some countries are already ahead of the curve:
- Sweden and Finland require regular pay audits and gender equality plans.
- Austria obliges companies to publish anonymised pay reports.
- Germany introduced a pay transparency law some years ago – with mixed results, but still an important signal.
The EU’s goal is to harmonise these fragmented approaches, set a common baseline, and ensure that fair pay is no longer dependent on where in Europe you work.
