March 2026 With less than three months to go until the PayTransparency Directive comes into force, we are startingto see more EU member states take steps to preparefor its implementation. Progress is, however, still slow. It seems that, as was the case with the Whistleblowing Directive, manymember states will be issuing draft legislation late in the day. This makesthings very difficult for employers, but as the minimum requirements In the latest version of our “snapshot” guide, we have collaborated withour Global Edge contributors to set out the current state of play in 19 keyEU member states, including an indication of the likely scale of change As the UK is no longer a member of the EU, it will not be required toimplement the Directive. To the extent UK companies have operations incontinental Europe, however, it will, of course, still be relevant. Greatertransparency in pay practices and procedures in EU member states is Please note that this guide is intended as a high-level overview only andshould not be regarded as a substitute for legal advice. It sets out theposition as of 16 March 2026. We recommend that you always checkthe latest position with your local labour and employment lawyer. Where How We Can Help We can support you in relation to all aspects of preparing for implementation of the PayTransparency Directive, as well as your broader pay equity strategy – from reviewing your Our global footprint and extensive experience of delivering global projects for clients means we can provide joined-upsupport to ensure your pay practices and structures align with the requirements of the Directive and any local implementing If you would like to discuss the implications of the Pay Transparency Directive for your business, please speak to your usualcontact at the firm or one of our experts in the first instance. Janette LucasPartner, LondonT +44 20 7655 1553E janette.lucas@squirepb.com Malgorzata GrzelakPartner, Warsaw Partner, BrusselsT +32 2 627 7620E marga.caproni@squirepb.com T +48 22 395 5528E malgorzata.grzelak@squirepb.com Global Edge Global Edge is an award-winning product that gives instant access to the latest employment law developments in38 countries, direct to a mobile device or desktop. It is an invaluable tool for in-house counsel and HR professionalsin global organisations, providing up-to-date, clear guidance on 30 employment law topics and upcoming legislation.Businesses with operations in continental Europe can keep abreast of developments with the Pay Transparency Key Provisions – Pay Gap Reporting Key Provisions – Pay Transparency Overview Overview Employers must provide job applicants with information about their starting salary(or pay range) for the position applied for. That information must be provided priorto any job interview, e.g. in a job advert. The aim here is to ensure an informed and •The new pay gap reporting obligations are significantly broader in scope than thosecurrently in place in most, if not all, EU member states. •Large employers will be obliged to report on their gender pay gap – see “WhatInformation Must be Provided?” on page 4 for the specific information that theywill be required to provide and the deadlines for doing so. The accuracy of the Employers will be prohibited from asking job applicants about their previous payhistory. The thinking behind this is that candidates should have salary offers based ontheir suitability for the role and not on what they may have been willing to work for at •Workers’ representatives will have access to the methodologies applied by theemployer and certain information must be provided to the workers and their Employers must make available to workers the criteria used to determine their pay,pay levels and pay progression. These criteria must be objective and gender neutral. Workers will have the right to request information in writing on their individual paylevel and the average pay levels, broken down by sex, for categories of workersperforming the same work as them or work of equal value. They also have the rightto request and receive this information through their workers’ representatives, in •Workers, workers’ representatives, labour inspectorates and equality bodies willhave the right to request further information, including explanations concerningany gender pay differences. Employers must respond to such requests within areasonable period and where gender pay differences are not justified based on •If (i) the pay reporting shows a difference in the average pay level between maleand female workers of at least 5% in any category; (ii) the employer cannot justifysuch a difference on the basis of objective, gender-neutral criteria; and (iii) it hasnot remedied the difference within six months of the pay reporting date, it will Employers will be prohibited from including contractual terms that restrict workers Pay Reporting Dates What Information Must Be Provided? Affected employers will be obli