Employers will have to be (more) transparent about their companies’ remuneration from 2026 onwards. With the Pay Transparency Directive, Europe is shifting up a gear in the fight against gender discrimination. The impact on employers should not be underestimated and is already needing to be met proactively.
Context
The principles of gender equality and equal pay for work of equal value have been enshrined in many international and European treaties and other fundamental texts for decades. Unfortunately, actually applying the principles in today’s 2025 would appear still to be work in progress. To address this problem, on 10 May 2023 the European Union adopted the Pay Transparency Directive (Directive (EU) 2023/970 to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women through pay transparency and enforcement mechanisms). Member States require to transpose the directive into national rules by 7 June 2026. That means that we are less than a year away from the deadline. In a press release on 13 March 2025, the National Labour Council’s employer and workforce representatives (the ”social partners”) announced that they are fully actively consulting to make sure the deadline is met. Among the announcements made is an intention to amend a number of collective bargaining agreements, including nos. 25, 38 and 95. At a regional level, the Government of the Fédération Wallonie-Bruxelles has already transposed the Directive - the first government to do so anywhere in the EU, in fact. Their rules apply to public employers and educational institutions under their authority.
Pay transparency obligations will apply to all employers in both the public and private sectors, with some exemptions for employers with a small number of employees.
The Pay Transparency Directive provides a clear overview of the upcoming new obligations, and this should mean that action can be taken even before the directive is transposed into Belgian law. In fact, it is advisable not to tarry because implementation does require some analysis and adjustment, so as to ensure compliance with the new obligations in a timely and accurate manner. In the following, we set out some of our most important guidance in succinct do’s and don’ts.
Pay Transparency in recruitment
Applicants will have the right to receive information about the initial rate of pay or its range, based on objective, gender-neutral criteria for the position concerned, and about the relevant provisions of applicable collective bargaining agreements. This information can ideally be included in the job vacancy notice.
You will no longer be allowed to ask job applicants about the pay they receive in their current job or that they received in any previous employment relationships.
Job vacancy notices and job titles should be gender-neutral and recruitment procedures should be conducted in a non-discriminatory manner.
Transparency of wage policy at company level
You will need to provide your employees with easy access to the criteria used to determine employees’ pay, pay levels and pay progression. These criteria should be objective and gender-neutral. Member States may exempt employers from this obligation if they have fewer than 50 employees.
Transparency of individual pay levels
Employees will have the right to request written information on their individual pay level and on average pay levels, broken down by sex, for categories of employees performing the same or equivalent work. As an employer, you must provide this information within two months of being asked for it. If the information is incorrect or incomplete, employees can ask for additional clarifications and details within reason. You have to inform your employees of this right and explain how they can exercise it.
Reporting on a pay gap between female and male employees
From now on, you will also have to report on the gender pay gap. This reporting includes:
- the gender pay gap and the median gender pay gap within your company, including in complementary or variable components, broken down by employee category and by ordinary basic wage and salary, plus the complementary or variable components; and
- the share of female and male employees receiving complementary or variable wage components, as well as the share in each quartile pay band.
The timing of these reporting obligations differs depending on the number of employees employed by the company:
- employers with 250 employees or more have to report for the first time on the situation in 2026 and no later than 7 June 2027, and they will have to report every year thereafter;
- employers with between 150 and 249 employees must report for the first time on the situation in 2026 and no later than 7 June 2027, and will have to report every three years thereafter;
- employers with between 100 and 149 employees must report for the first time on the situation in 2030 and no later than 7 June 2031, and will then have to report every three years thereafter;
- for employers with fewer than 100 employees, Member States should determine the reporting requirements themselves. For now, we have no further details on this
The employer’s management has to confirm that the information is accurate, upon consultation of the employee representatives. These representatives have to be able to see the methods that the
employer has used. Member States can arrange for some information to be gathered by the government on the basis of official data provided to the tax and social security authorities.
The information will also have to be communicated to all employees and employee representatives, to a special government body (yet to be named) and, if it so requests, to the labour inspectorate and the equal opportunities commission (yet to be confirmed). Employers may be asked to explain differences that are found, and to take remedial action to eliminate them.
In certain cases, employers will need to conduct a joint pay assessment in conjunction with their workforce’s representatives. This will be the case where:
- pay reporting shows a difference in average pay level between female and male employees of 5% or more in a given category of workers;
- the employer has failed to justify such a difference in average pay level on the basis of objective, gender-neutral criteria; or
- the employer fails to remedy an unjustified difference in average pay level within six months of the pay reporting date.
Monitoring and penalties
Subsequent to any mediation that is provided for, the onus lies with an employee who feels aggrieved at a failure to apply the principle of equal pay to raise legal proceedings. Proceedings will also be available on behalf of or in support of employees.
Employees who suffer loss as a result of breach of a right or obligation are entitled to compensation. In some cases, as with other forms of discrimination, the burden of proof shifts onto the employer, such as where the employee’s allegations suggest direct or indirect discrimination or where the employer has failed to comply with its pay transparency obligations. The new legislation will have to include protection against victimisation and less favourable treatment.
Proof of equal or equivalent employment is not limited to situations where female and male employees work for the same employer, but extends to situations where conditions of pay are set by reference to to the same, single source (e.g. a collective bargaining agreement entered into at the level of a corporate group or sector). Nor is the assessment limited to employees who are employed simultaneously.
Member States will be responsible for setting the penalties, which should include fines of a level that constitutes an effective deterrent. On top of that, contracting authorities will be able to exclude economic operators who are in contravention from a public procurement process.
What you need to do
All employers need to review their pay policies, specific pay rates, staff categories and internal procedures in order to identify what changes are required.
You will need to prepare internal policies and communications for recruitment purposes and inform employees about their new rights.
If you employ a workforce of 150 or more, we would advise you to make a start now so that you are comfortably able to report on year 2026 in 2027. If you employ fewer staff than that, even if your first reporting obligation will cover the year 2030 and need to be submitted in 2031, the other obligations still apply to you next year as to larger undertakings.
It is important to consult with the relevant workforce representative bodies on this process and to pay heed to the rules on personal data protection.
We are here for you throughout the process, to help you with all and any questions on strategic and practical application of the Pay Transparency Directive in your company.
