[EMEA] Europe prioritises transparency as gender pay gap scrutiny increases

Under increasing scrutiny, European Union (EU) countries and the UK are introducing stringent new transparency rules to bridge the gender pay gap and hold employers accountable, SIA reports.

The majority of countries legally require companies to pay men and women equally and not to discriminate on grounds of gender or other protected characteristics.  

Laws governing pay parity date back to the 1960s. However, the World Economic Forum’s 2025 Global Gender Gap Index reveals that no economy has yet achieved full gender parity. Pay transparency laws accelerate equality by increasing transparency in pay practices and reporting.  

From June 2026, the 27 EU member states will begin enforcing measures under the EU Pay Transparency Directive. 

Sweden, Ireland, Poland and Germany have already started to draft legislation to comply with the principles of pay transparency contained in the directive. These reportedly include: 

• Pay transparency 
• Mandatory gender pay gap reporting
• Employees’ right to information on remuneration
• A ban on secrecy clauses 

In Great Britain, the Employment Rights Bill will make it compulsory for all employers with 250 or more staff to submit a plan explaining their steps to tackle their gender pay gap. Northern Ireland is considering similar rules. 

SIA advises that employers in Europe and the UK should begin their preparations now, reviewing their existing remuneration structure and pay scales and tracking the relevant local law requirements. It suggests that they consider performing pay audits to assess pay disparities and address the underlying causes of any gender pay gap, and the steps needed to address structural pay differences. 

In addition, it says they should identify whether there is justification for a gender pay gap based on gender-neutral factors, particularly where the pay gap is 5 per cent or greater.  

Companies won’t be required to report their data until June 2027 at the earliest, but those reports will reflect pay data from June 2026. Meaning now is the time for organisations to identify the extent of their risk and what must be done to address it. 

Source: SIA

Under increasing scrutiny, European Union (EU) countries and the UK are introducing stringent new transparency rules to bridge the gender pay gap and hold employers accountable, SIA reports.

The majority of countries legally require companies to pay men and women equally and not to discriminate on grounds of gender or other protected characteristics.  

Laws governing pay parity date back to the 1960s. However, the World Economic Forum’s 2025 Global Gender Gap Index reveals that no economy has yet achieved full gender parity. Pay transparency laws accelerate equality by increasing transparency in pay practices and reporting.  

From June 2026, the 27 EU member states will begin enforcing measures under the EU Pay Transparency Directive. 

Sweden, Ireland, Poland and Germany have already started to draft legislation to comply with the principles of pay transparency contained in the directive. These reportedly include: 

• Pay transparency 
• Mandatory gender pay gap reporting
• Employees’ right to information on remuneration
• A ban on secrecy clauses 

In Great Britain, the Employment Rights Bill will make it compulsory for all employers with 250 or more staff to submit a plan explaining their steps to tackle their gender pay gap. Northern Ireland is considering similar rules. 

SIA advises that employers in Europe and the UK should begin their preparations now, reviewing their existing remuneration structure and pay scales and tracking the relevant local law requirements. It suggests that they consider performing pay audits to assess pay disparities and address the underlying causes of any gender pay gap, and the steps needed to address structural pay differences. 

In addition, it says they should identify whether there is justification for a gender pay gap based on gender-neutral factors, particularly where the pay gap is 5 per cent or greater.  

Companies won’t be required to report their data until June 2027 at the earliest, but those reports will reflect pay data from June 2026. Meaning now is the time for organisations to identify the extent of their risk and what must be done to address it. 

Source: SIA