The Directive · Directive (EU) 2023/970

Equal pay for work of equal value.

The Directive gives force to a principle that has existed since 1957 (Art. 157 TFEU): equal pay for equal work or work of equal value. It does not prescribe a pay model. It requires that whatever model you use is explainable, consistent and gender-neutral.

Purpose

What the Directive is for

Art. 1 · EUR-Lex Art. 4 · EUR-Lex

The Directive strengthens the principle of equal pay between men and women through pay transparency and enforcement (Art. 1).

Employers must have pay structures that let them compare work of equal value using objective, gender-neutral criteria (Art. 4).

Definition

“Pay” means all of it

Art. 3 · EUR-Lex

Pay includes base pay and all variable and in-kind components: bonuses, overtime pay, allowances, company cars, pension contributions and similar benefits (Art. 3).

Moving differentiation into the bonus therefore does not take it out of scope.

At a glance

Six requirements

Art. 4, 6

Objective, gender-neutral criteria

Pay and progression rest on criteria you can describe and apply consistently.

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Art. 4

Transparent pay bands

Pay structures that allow work of equal value to be compared.

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Art. 7

Right to information

Employees can ask for their pay level and averages by sex.

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Art. 9

Regular gap reporting

Defined gap metrics, including by category of workers.

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Art. 10

Works council cooperation

Joint pay assessment when an unjustified gap of 5% or more remains.

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Art. 18

Careful documentation

Where pay is opaque, the employer carries the burden of proof.

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Timeline

The dates that set the work plan

  1. 7 Jun 2023

    Directive (EU) 2023/970 enters into force.

  2. 7 Jun 2026

    Deadline for transposition into national law.

  3. 7 Jun 2027

    First reports: 250+ employees annually, 150–249 every three years.

  4. 7 Jun 2031

    First reports for employers with 100–149 employees.

Full Directive text · EUR-Lex