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EU Pay Transparency Directive readiness tool

VP
ES

7 min read

| Published on

Executive summary

The EU Pay Transparency Directive, which came into force in June 2023, gave member states until June 2026 to enact its requirements into national law.1 Although many countries are still drafting legislation, employers must prepare for it. With only a few months remaining, just 13% of employers report being ready.2 Low readiness is driven by a combination of internal misalignment — such as inconsistent pay systems and siloed teams — and the complexity of national and cross-border regulations. This puts organisations at legal, reputational, and operational risk, which can subsequently have a negative effect on organisational performance3 and equity outcomes.4

If you’re an inclusion leader, HR professional, or in any role responsible for pay and compliance, this tool will help you:

  • Evaluate your organisation’s current readiness.
  • Determine whether barriers are primarily internal or external.
  • Identify targeted, prescriptive actions such as strengthening pay systems, engaging employee representatives, training managers on pay transparency conversations, and publishing clear pay gap reports.

How to cite: Penda, V. & Smith, E.. (2026) EU Pay Transparency Directive readiness tool. Catalyst.

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