The case for equal pay and pay transparency in Europe 

Our point of view on the EU’s equal pay and pay transparency directive

Workplace culture has become more open, inclusive and fair as employers and governments have embraced diversity, equity and inclusion. In December 2022, the European Parliament and the European Union Council reached a political agreement on measures in the Directive on Equal Pay and Pay Transparency.

The business case for equal pay and pay transparency covers three distinct areas:

  1. Legal compliance
    Gender pay reporting of some form is a legal requirement in an increasing number of countries in Europe and across the world, and pay transparency is also an increasing requirement.
  2. Employee experience
    A culture of transparency — done correctly — drives better workforce outcomes.
  3. Pay equity
    Pay transparency, when coupled with robust analytics, can support fairer pay and career-equity outcomes.
The EU is entering a new era of pay transparency and pay equity. Our experience working with companies on their pay transparency journeys in places such as the United States has provided us with a breadth and depth of knowledge that we look forward to deploying for our European clients. Download our paper to get detailed insights on this topic and please get in touch.

Download our paper