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The EU Pay Transparency Directive sets out new requirements for companies regarding transparency in pay structures. At Azets, we help you understand and implement these requirements effectively. Our experts provide guidance on the appropriate use of employee data and the adaptation of internal processes, so your business is well prepared for the upcoming legislation. We stay up to date with developments to ensure your company remains ahead of the necessary changes.

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Specialist guidance on pay transparency

Receive tailored, specialist guidance to match your business needs.

Maximising the value of employee data

Learn how to handle and apply payroll data accurately and efficiently.

Adapting internal processes

Update your procedures to comply with the new legal requirements.

Up-to-date knowledge of legislation

We keep you up to date with the latest changes and requirements.

Latest update on the Pay Transparency Directive as of 14.10.2026

On 8 October 2026, the Danish government presented its bill implementing the EU Pay Transparency Directive (L 68). The bill proposes that the new rules take effect on 1 March 2027. That is later than the Directive’s deadline of 7 June 2026 and the 1 January 2027 date in the consultation draft.

The bill has its first reading in Parliament on 22 October 2026 and has not yet been adopted, so details may change. We are reviewing the bill and will update this page as the final rules take shape.

Background: the consultation draft

On 26 February 2026, the Ministry of Employment sent a draft bill implementing Directive (EU) 2023/970 of 10 May 2023 out for external consultation. The draft primarily regulates new transparency requirements in recruitment, employees’ right to pay information broken down by gender for comparable roles, increased focus on objective pay criteria, and strengthened enforcement and documentation requirements.

What is pay transparency?

Pay transparency can be described as the degree of openness and accessibility to information about the salaries a company offers its employees and the outside world. What was previously considered a private matter, such as salary levels and compensation, is increasingly becoming a topic that companies will be held accountable for in the future.

The pay transparency directive has been adopted to promote equal pay, particularly between the two genders. The new rules will make it easier for employees to negotiate salaries, as pay levels must be accessible. The legislation can thus help reduce the structural gender pay gap.

The Danish bill has now been presented but not yet adopted, so the final consequences for Danish employers are still taking shape. At Azets, we closely follow the legislative process and update this page when new information becomes available. We recommend keeping an eye on it to get the latest insights.

The pay transparency directive will particularly impact HR functions within the field of employment law, as it involves increased requirements for data management, reporting, and analysis of pay structures and potential pay gaps within the company.

We can help you achieve full compliance with pay transparency 

Legal support for pay transparency

With new legal frameworks come a range of changes to how you handle employment law, such as job architecture, pay policies, salary analyses, recruitment, and more. There are specific legal tasks to address here - tasks we can handle for you. When you choose to work with our HR legal specialists, you gain experienced support that can help your company achieve compliance with new legislation and regulations.

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Advisory and needs assessment

New requirements for the HR department will be introduced gradually as a result of new legislation and regulations. These requirements can lead to specific tasks that need to be addressed. The tasks could include data processing and registration, analysis and monitoring, reporting, and internal communication, among others. This is where we can help. Our specialists can support your company in optimising its HR function, ensuring it is prepared for the more complex demands of legislation and technological developments.

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Optimal use of data

To meet new requirements and opportunities within your company’s HR function, the correct and optimal use of data is crucial, as data from the company’s systems forms the basis for analysis, reporting, and decision-making support. We can help you achieve precision in analyses, support compliance procedures, and create credibility and transparency in the company’s processes - both internally among employees and externally with authorities and the wider society.

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How do you approach pay transparency?

1. Mapping pay gaps

Start by identifying the size and location of your pay gaps. This requires thorough work with data and reporting, which is often best managed with external support if you lack internal resources.

2. Review of pay policy

Your employees will increasingly take an interest in internal salary levels and compare them with their own. Therefore, it is important to review your pay policy. Ensure that the value of roles is assessed objectively, salary bands are clear, and employee compensation is determined based on gender-neutral criteria.

3. Market salary analysis

Pay transparency not only affects internal salaries, it will also create greater transparency across the market. To maintain your competitiveness, you should examine how your salary levels compare with competitors and adjust accordingly.

4. Transparency plan

Develop a plan to address the inequalities and issues identified during the mapping phase. This is an important step towards creating a transparent and fair pay structure.

FAQ: Pay Transparency Directive

Pay transparency refers to the degree of openness about pay conditions within a company. It helps provide employees and employers with insights into salary levels and reduces unequal pay between genders. Pay transparency includes access to information on gender pay gaps and specific requirements for transparency in pay policies and negotiations. The aim of the EU pay transparency directive is to promote equal pay, reduce inequalities in the labour market, and address the unexplained pay gap between women and their male colleagues.

The pay transparency directive is a new EU regulation that requires companies to ensure greater transparency around pay conditions, including the right to access salary information and the reporting of gender-segregated pay data.

The pay transparency directive has been adopted to promote equal pay between men and women. It is a directive designed to create better conditions for preventing and addressing unexplained pay differences between genders.

The EU deadline was 7 June 2026. The Danish government has proposed that the new rules take effect on 1 March 2027. The bill has not yet been adopted, so the date is not final.

In principle, the pay transparency directive will apply to all companies in both the public and private sectors. However, there will be specific rules and requirements for larger companies, such as pay reports.

Stay compliant with help from Azets' experts

With Azets as your advisor, you are fully prepared to meet the new pay transparency requirements. We ensure your company understands and implements the necessary changes accurately and efficiently.

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