Minor infringements
EUR 626 - 6,250
Failure to communicate pay differences to worker representatives. Formal transparency breaches.
Penalties
Fines for non-compliance with Salary Transparency
EU Directive 2023/970 - Penalties range from EUR 626 to EUR 225,018, not counting compensation to employees affected by pay discrimination.
LISOS
Penalty framework in Spain
Under the Law on Social Order Infringements and Sanctions (LISOS), penalties are classified into three levels.
Serious infringements
EUR 6,251 - 25,000
Failure to produce the pay register. Failure to conduct pay audits. Substantial breaches of the directive.
Very serious infringements
EUR 25,001 - 225,018
Direct or indirect gender pay discrimination. Repeat offences. Retaliation against employees who report violations.
Consequences
Beyond financial penalties
Penalties are not limited to fines. The directive introduces additional consequences that can be even more costly.
Employee compensation
Employees affected by pay discrimination are entitled to full compensation. Includes back pay, bonuses, benefits and moral damages. No maximum limit.
Reversed burden of proof
If an employee files a complaint, the company must prove it does NOT discriminate. If it cannot prove this, discrimination is presumed and the company is liable.
Reputational damage
Pay discrimination rulings are public. Reputational damage to the company can exceed the financial penalty itself.
Public contract exclusion
Companies sanctioned for discrimination may be excluded from public tenders and government contracts.
Collective actions
The directive allows trade unions and equality bodies to act on behalf of multiple employees. A single complaint can affect the entire workforce.
Retaliation protection
Employees who report violations are protected. Any retaliation (dismissal, demotion) triggers additional penalties.
Example
How much non-compliance can cost
Example for an 80-employee SME with an unjustified 12% pay gap.
Potential cost
- LISOS fine (serious): up to EUR 25,000
- Compensation per employee (x15): up to EUR 75,000
- Back pay (3 years): variable
- Legal costs: EUR 5,000 - 15,000
- Reputational damage: incalculable
Cost of compliance
- CumpleCheck Guide + Excel Template: EUR 39
- Implementation time: 2-3 months
- Salary adjustments: variable (but planned)
- Peace of mind: priceless
Don't wait for the penalty
Start today. Assess your situation with the free checklist or go straight to action with the full guide.