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Let us guide you through the Pay Transparency Directive

Pay transparency: guidance and data management

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Let us guide you through the Pay Transparency Directive

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.

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.

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. 
At present, we only have the EU directive on pay transparency, so it is still unclear what specific consequences the legislation will have in Denmark. At Azets, we closely follow the developments in the legislative process and provide updates when new information becomes available. Therefore, we recommend keeping an eye on this page to get the latest insights on the pay transparency directive.

We can help you achieve full compliance with pay transparency 

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. 

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.

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.

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.

How do you approach pay transparency?

The deadline for implementing pay transparency in your company might be closer than you think. Although the EU directive on equal pay has not yet been translated into specific legislation in Denmark, we recommend starting the process now. The first step is to gain an overview. Here’s what you should focus on: 

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.

Currently, all EU member states are required to implement the pay transparency directive by 7 June 2026. However, in Denmark, we are still waiting for the authorities to draft the specific rules and requirements that will apply nationally.

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.