Everything HR needs to answer right-to-know requests, categorise pay components, prove equal-value categories, and submit gender pay reports. Built for the EU. Built for HR.
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Ten obligations under Directive (EU) 2023/970. Most apply to every employer, regardless of size.
Salary ranges disclosed in job postings. Ban on salary history questions.
Any worker can request pay data by gender. Two-month written response.
Seven statutory metrics to the monitoring body. Phased by headcount, 250+ workers first.
In discrimination claims, the employer must prove no discrimination occurred.
Pay data lives in your HRIS, in country payroll systems, and in the spreadsheets in between. Compensation IQ pulls it all into one validated view - ready for the Directive.
Article 3 defines “pay” as far more than salary - bonuses, allowances, benefits in kind, occupational pensions. Compensation IQ classifies every component under Article 3 and stores the citation against every decision.
Article 9’s seven statutory metrics, generated automatically. Unadjusted for the headline. Adjusted for level, tenure, location and skills - so HR knows what’s structural and what isn’t. Equal-value categories built in Job Architecture, included.
Answer any Article 7 request in the two-month window. Submit the Article 9 report when it applies to your headcount. Every calculation versioned. Every citation held. Every number traceable.
We understand the sensitivity of compensation data. That’s why Compensation IQ is built with security and integrity first. Our practices are aligned with ISO 27001 and our policies and procedures are compliant with GDPR.
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The EU Pay Transparency Directive is Directive (EU) 2023/970, adopted on 10 May 2023. It sets minimum requirements for pay transparency and equal-pay enforcement across all 27 EU Member States, transposed into national law by 7 June 2026. Most obligations - including the Article 7 right to information - apply to every employer regardless of size.
Article 7 of the EU Pay Transparency Directive (Directive (EU) 2023/970) is the right to information - any worker can request their own pay level and the average pay levels by sex for workers doing the same work or work of equal value. It applies to every employer regardless of size. Employers must respond in writing within two months.
Article 3(1)(a) of the EU Pay Transparency Directive (Directive (EU) 2023/970) defines “pay” as ordinary basic wage or salary AND any other consideration, cash or in kind, a worker receives from their employer. That covers bonuses, overtime, allowances, benefits in kind, occupational pensions, statutory sick pay and dismissal payments. Recital 21 confirms this is a floor - Member States and collective agreements can add to it.
Article 7 of the EU Pay Transparency Directive is the right to information - a worker’s request answered in two months, applies to every employer. Article 9 is the pay gap reporting duty - seven statutory metrics to the national monitoring body, phased by headcount. First Article 9 reports are due 7 June 2027 for 250+ workers and 150-249 workers; 100-149 workers first report by 7 June 2031.
A Joint Pay Assessment is required by Article 10 of the EU Pay Transparency Directive when three conditions are met: a category gender pay gap of at least 5%, not justified on objective, gender-neutral criteria, and not remedied within six months of the pay gap report. It’s carried out by the employer with workers’ representatives. For 250+ workers, the first JPA obligation follows six months after the first Article 9 report due 7 June 2027.
Article 4(4) of the EU Pay Transparency Directive requires pay structures to enable assessment of whether workers are in a comparable situation, on objective, gender-neutral criteria - skills, effort, responsibility and working conditions. Workers doing the same work or work of equal value form a “category of workers” under Article 3(1)(h). Pay comparisons for Article 7 responses and Article 9 reporting are made across each category.
Article 9 of the EU Pay Transparency Directive does not require mandatory gender pay gap reporting for employers under 100 workers - Article 9(5) makes it voluntary. Member States may require it by national law (France retains 50, Lithuania 20). Every employer, regardless of size, is subject to the Article 7 right to information, the Article 5 recruitment transparency requirement, and the Article 18 burden of proof.
Article 18 of the EU Pay Transparency Directive reverses the burden of proof in equal-pay discrimination claims. Where a worker establishes facts from which discrimination may be presumed, the employer must prove no direct or indirect discrimination occurred. Documentation and traceability of every pay decision back to Article 4 gender-neutral criteria is the practical response.
Compensation IQ EU Pay Transparency covers all 27 EU Member States required to transpose Directive (EU) 2023/970 into national law by 7 June 2026. The platform handles multi-country pay components in local languages, formats and fiscal calendars. Where a Member State transposes rules stricter than the Directive’s minimum (Article 27(1)), the stricter national rule binds locally.
Compensation IQ pulls pay data from your HRIS, country payroll providers and supplementary spreadsheets into one validated view, then classifies every component under Article 3 of the EU Pay Transparency Directive with the citation stored per decision. 50+ HRIS integrations plus guided CSV upload for country payroll systems. Country pay components (Weihnachtsgeld, dodatek, thirteenth-month, functional allowances) classified in their local language.