Reward Design

Pay Transparency Practical Considerations

  • September 11, 2023

The EU Pay Transparency Directive came into force on the 6 June 2023. The aim of the Directive is to ensure that the right to equal pay is upheld across all member states. EU member states have until 7 June 2026 to transpose the Directive’s provisions into national law.

It is recognised that the directive has implications for employers across the EU but also in the UK. The concept of pay equity is also driving pay transparency laws beyond the EU. Individual States and Cities in North America have laws requiring disclosure of pay ranges and pay scales, with California and New York City at the forefront on this activity.

Pay Transparency is positioned as an opportunity for pay practices to be improved in support of greater pay equity via the identification of existing pay gaps.

These slides from Eversheds Sutherland summarise the P2P Breakfast session and the open discussion on the subject of pay transparency and how its being approached or will be approached in each location of operation.

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