Companies Struggle with EU Pay Transparency Directive Implementation

With just one year before the EU Pay Transparency Directive becomes mandatory, companies are facing significant challenges. A Stepstone survey reveals that only 31% of HR managers in Germany are familiar with the directive's specifics, while 26% haven't heard of it. Concerns about additional workloads, internal conflicts, and rising personnel costs prevail.

The directive, set to be implemented by June 2026, requires companies to disclose salary ranges and offers employees a right to pay comparison information. Despite the looming deadline, 46% of companies believe implementation will exceed six months, indicating a lack of readiness.

Fears of internal discord are contributing to the hesitation. Companies are also worried about increased administrative burdens and personnel costs. However, The Stepstone Group views transparency as an opportunity to build trust and enhance employer branding.