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EU Companies Rush to Finalize Pay Transparency Systems Before 2026 Deadline

Workers will soon gain the right to compare their pay with colleagues of the opposite gender under strict new transparency requirements.

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Overview

  • Directive 2023/970 bans contractual pay secrecy and grants employees the right to request individual and median salary data by gender within two months of a formal inquiry.
  • All workers in both public and private sectors are covered, with firms required to provide gender-segmented pay information by job category.
  • Companies with more than 50 employees must comply by 7 June 2026 or face sanctions and prove they have not practiced discrimination.
  • Firms across the EU, notably in Italy, are finalizing payroll systems and revising contracts to meet transparency rules ahead of the one-year countdown.
  • Advocates say mandated pay disclosure will help narrow the 13% gender pay gap, strengthen trust in workplaces and reduce legal risks.