Pay transparency is getting closer

By 7 June 2026, all EU Member States are obliged to implement the pay transparency directive, i.e. Directive (EU) 2023/970 of the European Parliament and of the Council of 10 May 2023 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.

Although the Polish legislator has not adopted the law necessary for the implementation of the directive yet (work on the law is in progress), you should not wait until the last minute to prepare your organisation for the changes in pay policies. We recommend starting your preparations now!

Purpose of the directive

The main purpose of the directive is to eliminate the pay gap between women and men performing the same work or work of equal value. Currently, the gender pay gap in the EU is around 13%. This means that, on average, women in the EU earn 13% less than men for the same work.

Eliminating the pay gap shall be achieved, among other things, through the implementation of transparent and fair pay mechanisms for both employees and job candidates.

Who is affected by the directive

The directive applies to all employers, whether in the public or private sector, regardless of the number of employees.

The rules under the directive apply not only to employees under an employment contract or in an employment relationship (as defined by law, collective agreements or national practice), but also to job candidates.

The work compared in terms of pay will be the same work or work of equal value. Work of equal value is defined as work that is determined to be equal in accordance with the non-discriminatory and objective gender-neutral criteria, such as skills, effort, responsibilities, working conditions and any other factors that are relevant to the specific job or position.

New obligations for employers

The directive imposes a number of new obligations on employers.

Obligations towards job candidates:

• Providing job candidates with information on initial pay or its range before the job interview
• Ensuring gender neutrality in vacancy notices and job titles
• Ensuring a non-discriminatory recruitment process

Employers will not be allowed to ask job candidates about their current pay or prior pay history.

Obligations towards persons already employed:

• Ensuring that employees have easy access to the criteria used to determine the pay level and its progression (Note: member states may exempt employers with fewer than 50 employees from the obligation regarding pay progression)
• Informing employees, at their request, of their individual pay level and the average pay levels broken down by gender for employees performing the same work or work of equal value
• Informing employees annually about the possibility to request information on the company’s pay levels

Employers will not be able to prohibit employees from disclosing information about their pay. In particular, it will not be allowed to introduce provisions in contracts prohibiting employees from disclosing such information.

Note! Employees cannot be discriminated against or treated less favourably in connection with the enforcement of their equal pay rights or in connection with providing support to another person in this regard.

Reporting obligation

The directive also establishes a reporting obligation, requiring employers to regularly report to the competent authority on the pay structure and possible gender pay gaps in their organisation.

Depending on the number of employees, employers will be required to report with different frequencies:

• employers with at least 250 employees – obligation to report by 7 June 2027 and every year thereafter
• employers with 150 to 249 employees – obligation to report by 7 June 2027 and every three years thereafter
• employers with 100 to 149 employees – obligation to report by 7 June 2031 and every three years thereafter

Note! The directive does not impose a reporting obligation on employers with less than 100 employees, but this does not exclude the possibility that the Polish legislator may require such employers to prepare reports.

The reports prepared by employers will be publicly available.

If a report reveals a gender pay gap of at least 5% in any category of employees, and the employer fails to justify the gap on the basis of objective and gender-neutral criteria, and does not remedy this difference within 6 months from the date of submitting the report, the employer will be obliged to make a joint pay assessment with employee representatives. The employer will be then required to take appropriate remedial measures to eliminate unjustified pay disparities.

How to prepare for the implementation of the directive?

Although the date of 7 June 2026 may seem a long way off, we recommend that employers, particularly those with 150 or more employees, start taking action now to prepare their organisations for the implementation of the pay transparency directive.

What can and should be done now to effectively prepare for the implementation of the directive?

• Review job positions and pay earned in those positions
• Review job descriptions, along with job duties and responsibilities
• Conduct a job evaluation
• Review pay policies and criteria used to determine pay levels, promotions and pay raises
• Analyse the possibilities of implementing IT tools for efficient collection, analysis, and reporting of payroll data

Note! Organising the pay system in an organisation will most likely generate additional costs for the employer, which should be taken into account when planning the budget.

Contact

Clients interested in support with preparing for the above changes are welcome to contact us.