Understanding the EU Pay Transparency Directive - Compliance and business impact

Over the past decade, the focus on environmental issues has grown exponentially, resulting in various global commitments initiatives aimed at transforming current institutional, economic, and financial models.

The EU Pay Transparency Directive, adopted in June 2023, introduces strict pay transparency reporting requirements for companies operating within the European Union. Businesses will need to comply with new obligations on pay reporting, disclosure to employees, and gender pay gap assessments by June 7, 2026.

Beyond compliance, pay transparency is a competitive advantage, improving employer bring, talent attraction, and workforce trust.

This training will help organisations understand the regulatory requirements, assess potential risks, and implement strategies to align with the directive while driving fair pay practices.

By the end of this training, participants will

• understand the EU Pay Transparency Directive’s key requirements and compliance deadlines;
• learn about pay reporting obligations, salary disclosure rules, and equal pay assessments;
• explore the financial, legal, and reputational risks of non-compliance;
• gain insights into pay equity strategies and internal compliance measures;
• identify best practices for managing employee expectations and external communication.

• Introduction to the EU Pay Transparency Directive
  • What is the EU Pay Transparency Directive, and why was it introduced?
  • The link between equal pay principles and gender equality in the workplace
  • Timeline and deadlines for compliance across the EU
  • How this directive aligns with other HR ESG reporting obligations (CSRD, DEI initiatives, etc.)
• Key regulatory requirements and compliance obligations
  • Salary transparency in job postings
  • Employee right to request pay information
  • Pay gap reporting obligations:
  • Joint pay assessment requirement
  • Prohibition of salary history inquiries
• Legal risks and business impact of non-compliance
  • Financial penalties
  • Reputational risks
  • Increased litigation risks
  • Investor and regulatory pressure
• Next steps for businesses
  • Conducting pay equity assessments before the directive is fully enforced
  • Developing internal processes for salary reporting and compliance tracking
  • Training HR and leadership teams on pay transparency policies
  • Enhancing employer bring through proactive transparency initiatives

This training is coordinated by Vinciane Istace, Partner at PwC Luxembourg.

Vinciane is a partner in the People, Experience and Change service team of PwC Luxembourg. She has been with the firm for more than 31 years. She acquired extensive experience in designing effective workplaces for people when leading the HR function of PwC. In her executive role of human capital leader, she structured PwC HR operational capabilities, and co-designed and deployed the firm’s HR strategy.

She is currently responsible for both the People and Process Outsourcing (“PPO”) practice, proposing assistance to our clients in the field of payroll, immigration and HR administration and for the people, experience and change team, providing HR advisory services from strategic design to implementation. As a seasoned HR professional, she can thus combine an extensive knowledge in HR related technical skills and a proven experience in fostering positive human interactions for a sustainable workplace.

Vinciane is a certified expert in various psychometric tests such as “insights discovery” for identifying behavioural preferences, the “Trait Emotional Intelligence Questionnaire”, or “TEIQue”, and the “High Potential Trait Indicator” (HPTI).