In 2026, every single European company with more than 150 employees must follow the EU 2023/970 directive on equal pay for equal work. Is your company ready to oblige to these new reporting standards?
The PayGap platform delivers an end-to-end Pay Equity solution for the pay transparency directive, giving you a complete overview of all important facets of the company's pay structure.
Real-time Pay Gap insights and reporting, allowing you to monitor the Pay Gap even during changes.
Instantly identify employees and pay groups that are non-compliant, to mitigate compliance issues.
PayGap helps you identify how you can distribute your budget to get the highest impact.
Fulfill compliance requirements by automating your employee reports from pay to career transparency.
Engaging in Pay Equity is not only the right thing to do ethically, but equally so for the underlying business value.
Increases in Pay Equity are correlated with increased organizational commitment.
Engaging in Pay Equity can significantly reduce turnover intentions amongst employees.
Pay Equity compliance results in a more attractive workplace, leading to better applicants.
Pay Equity strengthens your brand and reputation amongst clients and employees.
Studies
Buttner, E. H., & Lower, K. B. (2017). The relationship between perceived pay equity, productivity, and organizational commitment for U.S. professionals of color.
Buttner, E. H., & Lower, K. B. (2015). Addressing Internal Stakeholders’ Concerns: The Interactive Effect of Perceived Pay Equity and Diversity Climate on Turnover Intentions.
Anderson, D., Bjarnadóttir, M. V., Dezső, C. L., &Ross, D. G. (2019). On a Firm’s Optimal Response to Pressure for Gender Pay Equity.
Chai, D. S., Jeong, S., & Joo, B.-K. (2020). The multi-level effects of developmental opportunities, pay equity, and paternalistic leadership on organizational commitment.
The new EU directive is comprehensive and there are a lot of moving parts for a company to get ready. Here you can find a few of the most asked questions, and how PayGap can help.
The new Pay Transparency Directive (EU 2023/970) applies for all companies in Europe that has more than 100 employees. Furthermore, the directive allows for member states to impose the regulations on smaller companies as well.
The EU 2023/970 directive provides a comprehensive legal framework, setting a range of requirements on companies operating in Europe. Generally, the companies must make the following information available in reports at set intervals.
- Total Gender Pay Gap
- The gender pay gap in complementary or variable components
- The Median Gender Pay Gap
- The Median Gender Pay Gap In Complementary Or Variable Components
- The Proportion Of Female And Male Workers Receiving Complementary Or Variable Components, Broken Down By Gender
- The Proportion Of Female And Male Workers In Each Quartile Pay Band, Broken Down By Gender
- The Gender Pay Gap Between Workers By Categories Of Workers Broken Down By Ordinary Basic Salary And Complementary Or Variable Components
- The Proportion Of Workers Who Benefited From A Pay Rise Following Their Return From Maternity Leave, Paternity Leave, Parental Leave, And Carers’ Leave Broken Down By Gender
- The Average Pay Levels By Category Of Workers Broken Down By Gender.
You can read more about the specific reporting components in this guide: Understanding EU Directive 2023/970: A Comprehensive Guide
Making a Pay Gap report might sound easy at first, but there are a lot of moving parts in appropriately determining the pay gap. To account for pay-setting criteria, a regression analysis would typically be the choice, which can incorporate the impact of various factors into determining the right pay for each employee. These factors include pay grade, job family, performance, length of tenure, education and more. Each regression analysis must be setup in a way that reflects the respective company structure, which can prove to be a tedious and difficult task.
You can use PayGap to get all of this work done for you, get real-time insights into how your company is in terms of compliance, and make sure you report on all the required parameters at the right deadlines.
Transparency is key for us, and that also goes for our billing structure. We try to keep it simple and easy to understand. Therefore, all our packages are comprise an annual subscription fee based on the number of employees. This figure includes everything that goes into getting started with PayGap, from setup to reporting.
You can see the specific prices for our packages on our Pricing Page.
We have different plans depending on the needs and size of our customers. Common for them all is that they makes sure that the company is able to report in accordance with regulations. The more comprehensive packages includes multi-tiered logins for managers of the organization that allows them to see their departments performance and get access to tools that will help them stay compliant. Further, enterprises are able to setup SSO, to streamline the login experience across their software products.
All our packages are based on annual subscriptions, and you can terminate your subscription at any time before your renewal. We believe that we should deserve you as a customer by creating a product that you enjoy using and your company gets value from, and not by tying you down as a customer through vague and long termination periods.
For the moment being, you need to get in touch with one of our team members, who will get you setup and introduce you to the platform.
Get StartedYes, we would love to do an initial workshop with you to map the right order of actions to get started on your Pay Gap journey towards EU 2023/970. Typically, the workshop will aim to map your current situations, and what steps you will need to take to identify, mitigate, and close any pay gaps you might have.
