FAQ
Frequently asked questions about Salary Transparency EU 2026
We answer the most common questions about EU Directive 2023/970 and its obligations for companies.
About the directive
What is the EU Salary Transparency Directive 2023/970?
It is a European directive approved in 2023 that requires all EU companies to demonstrate equal pay between men and women for work of equal value. Member states must transpose it before 7 June 2026.
Which companies are affected?
ALL companies with employees in the European Union, regardless of their size. Companies with more than 100 employees have additional periodic reporting obligations, but small companies must also comply with basic transparency requirements.
What is the compliance deadline?
7 June 2026 is the deadline for member states to transpose the directive into national law. From that date, obligations are enforceable for companies.
I already have the pay register required by national law. Is that enough?
No. The EU directive goes far beyond existing national regulations. It includes new requirements such as gender quartiles, gap in variable components, mandatory justification of gaps exceeding 5%, salary information in job postings, and the reversal of the burden of proof. See all obligations
About penalties
What are the penalties for non-compliance?
Penalties range from EUR 626 for minor infringements to EUR 225,018 for very serious ones. Additionally, affected employees can claim unlimited compensation. See full penalty details
What is the reversed burden of proof?
It means that if an employee alleges pay discrimination, it is the company that must prove it does NOT discriminate (not the employee). If the company cannot prove it, discrimination is presumed.
What happens if my pay gap exceeds 5%?
If the gap exceeds 5% in any professional category and cannot be justified by objective criteria, the company must conduct a joint pay assessment with worker representatives and implement a documented remediation plan.
About compliance
How do I calculate my company's pay gap?
The mean pay gap is calculated as: (Men's mean pay - Women's mean pay) / Men's mean pay x 100. You also need to calculate the median gap, the gap in variable components, and the distribution by gender quartiles. The CumpleCheck Excel template performs all these calculations automatically.
Is it mandatory to include salary in job postings?
Yes. The directive requires disclosing the salary range or starting salary before the first interview. It can be in the posted job ad or communicated directly to the candidate. Additionally, asking the candidate about their current or previous salary is prohibited.
About CumpleCheck
Is the checklist really free?
Yes, completely free. You only need to enter your email to download it. No fine print, no strings attached.
What is the difference between the free checklist and the paid guide?
The free checklist assesses in 20 points whether your company is prepared. The paid guide (EUR 39) includes 23 pages of step-by-step instructions, calculation formulas, remediation plan, implementation calendar, and an Excel template that calculates the pay gap automatically.
Can I request a refund after purchase?
As this is a digital product with instant download, the right of withdrawal does not apply once the download has started. Before buying, you can assess your company with our free 20-point checklist to make sure the guide is what you need.
Have more questions?
Start by assessing your company with the free 20-point checklist.