EU Salary Transparency Directive: How to Prepare Your Payroll for June 2026

Introduction

The European Union has established the Salary Transparency Directive as part of its ongoing efforts to promote wage equality and fair working conditions. This significant directive, which must be implemented by June 2026 at the latest, requires companies across the EU to take specific measures regarding salary transparency. The aim of this directive is to reduce discrimination and inequalities in compensation and to create a fairer working environment. In this comprehensive guide, you will learn how to effectively prepare your payroll for these requirements. We will guide you step by step through the process and provide valuable tips and resources to ensure you are well prepared.

Prerequisites

Before you begin implementation, it is important to ensure that you have the necessary knowledge and tools. Here are some basic prerequisites to consider:

• Understanding EU Wage Regulations: Familiarize yourself with the specific requirements of the Salary Transparency Directive. This directive is a central part of the EU's efforts to reduce wage inequality and requires companies to disclose and review their compensation practices. A thorough understanding of these requirements is crucial to avoid legal and financial risks.

• Ability to Analyze Data: You should be able to effectively analyze salary data to identify inequalities. This requires not only technical knowledge of data analysis tools but also an understanding of which factors can lead to wage differences. Training or workshops on data analysis can be helpful here.

• Familiarity with Payroll Software: Modern payroll software can help you automate processes and manage data efficiently. Software solutions often offer reporting and analysis features that are invaluable for implementing the Salary Transparency Directive. You can find more information about automating payroll in our blog.

• Communication Skills: Salary transparency also requires effective internal communication. You must be able to communicate the changes clearly and understandably to your employees. This may include training and the development of communication strategies.

Step-by-Step Guide

Step 1: Analyze Salaries

First, you need to conduct a comprehensive analysis of the current salaries in your company. This analysis serves as the foundation for all subsequent steps and helps you gain a clear picture of the current salary situation.

Aim

The aim of this analysis is to identify salary differences that cannot be justified by objective criteria such as work experience, qualifications, or area of responsibility. Such an analysis can also uncover hidden discrimination that may have gone unnoticed.

Expected Outcome

By the end of this step, you should have a detailed overview of all salaries in your company and know where inequalities might exist. This overview should also highlight possible reasons for salary differences that require further investigation.

Tips

• Use a spreadsheet program or specialized software to organize your data. These tools can help you identify patterns and create reports.

• Ensure that all data is accurate and up to date. Outdated or incomplete data can lead to erroneous analyses.

• Consider external factors such as market developments and economic changes that could affect salary differences.

Step 2: Review Salary Structures

After the analysis, you should review your salary structures to determine if they meet the requirements of the Salary Transparency Directive. A transparent and fair salary structure is crucial for gaining and maintaining employee trust.

Aim

Ensure that salary structures are transparent and based on objective criteria that are understandable to all employees. This helps reduce the risk of discrimination and increase employee satisfaction.

Expected Outcome

A revised salary structure that is fair, transparent, and just. This structure should also be flexible enough to adapt to future changes.

Tips

• Consult with an employment law expert to ensure your structures comply with legal requirements. An expert can also help identify best practices that are common in your industry.

• Consider how you communicate and document salary decisions. Clear documentation can help avoid misunderstandings and build trust.

Step 3: Implement Transparency Measures

Implement measures to promote transparency in your company. This includes establishing policies and processes that ensure salary information is accessible and understandable to all relevant parties.

Aim

Foster a culture of transparency and openness regarding salaries. Transparency can help strengthen employee trust and increase motivation.

Expected Outcome

A transparent system that is accessible to both employees and management and contributes to creating an open and trusting work environment.

Tips

• Develop an internal communication program to inform employees of new policies. Regular updates and open discussions can help clarify questions and address concerns.

• Utilize digital platforms to make salary information easily accessible. Intranet portals or specialized apps can be useful here.

Step 4: Train Employees

Train your employees regarding the new transparency policies and processes. This is crucial to ensure all parties understand and support the changes.

Aim

Ensure that all employees are informed and trained on the new policies. Training helps avoid misunderstandings and promotes acceptance of the new measures.

Expected Outcome

Well-informed employees who understand and support the new transparency policies. These employees can also act as ambassadors for the new culture of openness.

Tips

• Organize workshops or training sessions to explain the changes to employees. These events also provide an opportunity to clarify questions and gather feedback.

• Prepare informational materials that summarize the key points. These materials can serve as references and help disseminate information within the company.

Step 5: Continuous Monitoring and Adaptation

Once you have implemented the measures, it is important to continuously monitor the results and make adjustments as needed. This ongoing monitoring is crucial to ensure the goals of the Salary Transparency Directive are met.

Aim

Ensure that the implementation is effective and improved as needed. Flexibility and adaptability are vital to keep pace with changing requirements and conditions.

Expected Outcome

A flexible system that can adapt to changing circumstances and new insights. This system should be regularly reviewed and updated to ensure it meets current requirements.

Tips

• Conduct regular reviews to assess the effectiveness of the measures. These reviews can also help identify and address new challenges.

• Use feedback from employees to make improvements. Employee feedback is a valuable resource for assessing the effectiveness of the measures and making necessary adjustments.

Summary / Quick Reference Table

Common Mistakes and Solutions

Mistake 1: Incomplete Data Collection

Solution: Ensure all relevant salary data is collected and updated regularly. Comprehensive data collection is crucial for accurate analysis and evaluation.

Mistake 2: Insufficient Communication

Solution: Develop a clear communication plan to ensure all employees are informed of changes. Open and transparent communication is critical for the success of the implementation.

Mistake 3: No Ongoing Monitoring

Solution: Implement a system for regular review and adjustment of measures. Continuous monitoring allows for early responses to problems and improvements.

Best Practices & Professional Tips

• Increase Efficiency: Use software solutions to automate processes and improve efficiency. Automation can help reduce errors and optimize workflows. You can find more about this in our articles on continuous payroll.

• Continuous Education: Stay informed about current developments in legislation and engage in continuous learning. This helps you remain up to date and avoid legal risks.

• Seek Feedback: Regular feedback from employees can provide valuable insights for improving processes. Employees are often the best sources of information about how changes affect daily work.

Final Checklist

[ ] Analyzed salary data
[ ] Reviewed salary structures
[ ] Implemented transparency measures
[ ] Trained employees
[ ] Set up monitoring system

The Best Tools for Implementing the EU Salary Transparency Directive

In implementing the EU Salary Transparency Directive, many companies rely on specialized software solutions that significantly simplify analysis, reporting, and transparency processes. Below is an overview of some of the most relevant tools currently available – including AI-driven solutions, classic equal-pay platforms, and comprehensive HR systems.

project b.: AI-Powered Salary Analysis for Modern HR Teams

Suitable for: Companies looking to leverage AI for rapid data analysis
Strengths: AI analysis modules, pattern recognition and inequalities, automated recommendations
project b. offers an innovative AI tool that intelligently evaluates salary data and recognizes patterns that may indicate inequalities. The solution is particularly suitable for companies that prefer a modern, automated approach. Through AI-driven analyses, project b. can provide suggestions for optimizing salary structures, thus contributing significantly to compliance with the EU directive.

PayAnalytics: Specialized in Equal-Pay Analyses

Suitable for: Medium and large companies
Strengths: In-depth analytics, gender pay gap reporting, international compliance
PayAnalytics is one of the best-known tools for pay equity analyses. It allows for detailed examination of gender-specific wage differences, offers clear visualizations, and helps companies meet legal requirements in various EU countries.

beqom Pay Transparency: Transparency & Governance at Enterprise Level

Suitable for: Corporations and global companies
Strengths: Integration into existing HR systems, salary range management, audit functions
beqom offers a comprehensive module specifically designed for the EU Salary Transparency Directive. The tool assists companies in managing salary ranges, documenting compensation decisions, and preparing mandatory transparency reports.

Trusaic PayParity: Complete EU Compliance in a Suite

Suitable for: Companies of all sizes with high compliance demands
Strengths: Automatic gap analyses, legally compliant reports, consulting support
With PayParity, Trusaic offers a solution specifically tailored to regulatory requirements. The platform continuously analyzes salary data, identifies compliance risks, and generates ready-made reports that cover all EU requirements.

Sysarb: Equal-Pay Platform Focused on EU Regulations

Suitable for: Companies with complex compensation structures
Strengths: Job architecture modules, advanced gap analyses, audit reporting
Sysarb is among the most advanced equal-pay platforms in Europe. It helps companies create a clear salary structure, identify wage inequalities, and document evidence that is legally secure.

Summary & Next Steps

By successfully implementing the Salary Transparency Directive, you are making a significant contribution to promoting wage equality and fairness in your company. You have completed the steps to analyze, revise, and implement transparency measures. Next, you should consider continuous education and adaptation of your processes to always meet current requirements. For further information and support, you can contact our professional payroll department.

Sources

• Salary Transparency in the EU - European Council

• project b. - AI-Powered Salary Analysis

• PayAnalytics - Specialized in Equal-Pay Analyses

• beqom Pay - Transparency & Governance at Enterprise Level

• Trusaic PayParity - Complete EU Compliance in a Suite

• Sysarb - Equal-Pay Platform Focused on EU Regulations