What is the EU Pay Transparency Directive?  

The EU Pay Transparency Directive is a new piece of legislation introduced by the European Council to promote fairer pay across the European labour market. Its goal is simple: equal pay for equal work. The rules come into effect on June 7, 2026, and will apply to companies of all sizes in Belgium and all EU member states. 

The directive aims to reduce long-standing gender pay gaps, make pay clearer for everyone, and push for fair, non-discriminatory pay practices. Companies will need to: 

  • Share pay information with candidates as well as employees openly
  • Ensure that their pay structures are based on objective criteria
  • Carry out pay assessments
  • Act when gaps go beyond set thresholds. 

For businesses preparing early, understanding these changes matters. To help, we’ve created a set of resources, including a new eBook on how the directive is shaping recruitment. Together, they offer clear, practical guidance to help you navigate the changes ahead. 

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What the new Pay Transparency Directive means for Belgian companies

In Belgium, the EU Pay Transparency Directive brings several new legal obligations employers will have to meet regarding salary transparency, pay reporting, and equal pay compliance. Some of the new requirements can feel complex, so this section breaks them down and explains why they matter. You can find more detailed guidance in our kit.

What companies in Belgium will be required to do 

As of now, here is what we know about the upcoming requirements. Each country will still need to transpose the directive into local law, so details may vary. Make sure to follow official government updates to stay aware of any changes. to stay aware of any changes. to stay aware of any changes.

Employers are expected to meet several new duties, including: 

  • Publishing salary ranges or pay information in job listings or communicating them in another way before any interviews take place so candidates know what to expect
  • Not asking for salary history during the recruitment process  
  • Having set up gender-neutral job evaluation systems with clear, objective and gender-neutral criteria that are documented, measurable, and applied consistently
  • Respecting pay gap reporting frequencies based on company size
  • Conducting joint pay assessments with worker representatives and correcting pay gaps if they exceed 5% and cannot be objectively justified
  • Giving workers access to information about average and median pay data for people doing the same work, or work of equal value
  • Responding in writing within 2 months to employee requests about pay data
  • Regularly communicating employees’ rights to request pay information 

Wallonia–Brussels Federation: Transposition of the EU Pay Transparency Directive

Within Belgium, the Wallonia–Brussels Federation operates under its own legislative authority. In November 2024, its government formally adopted a decree implementing the EU Pay Transparency Directive. This regional legislation is now confirmed and will be fully applicable from June 2026.

The decree covers all organisations under the Federation’s authority, including:

  • Public entities and companies created by the Federation
  • Educational institutions it governs
  • Government and administrative bodies under its control

The content largely mirrors the EU Directive, while adding a few region‑specific clarifications to support implementation within the public sector:

  • Timing for salary range disclosure during hiring. The Federation’s decree specifies that employers must disclose the salary range and any relevant collective agreement provisions for new roles as soon as they are advertised i.e. within the job advert itself – the Directive only specifies that candidates must have this information before interviews.
  • Parental leave disclosure. The Federation’s decree adds to the Directive’s reporting requirements by mandating that employers must also report on the amount of leave granted to male and female workers for family responsibilities (maternity, paternity, parental, adoption) and the equivalent in pay.
  • Penalties for non-compliance. The decree rules that employers who fail to comply with the requirements or fail to reduce their pay gaps to an acceptable level will be fined up to 3,900 euros per year or the equivalent of the actual damages suffered.

Want to get ahead of the new directive? Explore our full resource kit featuring the Salary Transparency Starter Pack, cheatsheet, and webinar recording. Download it all here.

Why the EU introduced pay transparency rules

The directive addresses long standing issues in Europe’s labour market, including gender pay gaps, limited visibility around pay structures and uneven access to salary information. By creating a shared framework across member states, the directive aims to achieve:

  • Gender pay gap reductions by making pay differences easier to spot
  • Equal pay for equal work, ensuring people in similar roles are paid fairly
  • Fairer recruitment, with less bias and clearer information for candidates
  • More structured pay reporting, helping companies review their practices with more clarity 

These changes reflect rising expectations around openness, fairness and trust, all of which shape employer reputation and talent attraction. 

Pay transparency in recruitment

As mentioned above, the directive introduces several hiring related changes, such as: 

  • Including salary ranges in job postings or sharing them with candidates before interviews, helping create a more open hiring process
  • Removing salary history questions from recruitment conversations so pay decisions reflect the role, not past earnings
  • Using consistent criteria to assess roles before setting pay, supporting fair and balanced decisions
  • Updating recruitment communication, including job adverts and candidate messages, to reflect the new transparency requirements 

As part of our Salary Transparency kit, we have created a new eBook which shares practical tips for transparent hiring and advice on attracting talent in a more competitive environment. 

Get your full resource kit

  • Salary Guide Belgium

    Salary benchmarking will play an important part in setting competitive and compliant range. Discover market aligned pay benchmarks to support compliant and competitive salaries.

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  • Frequently asked questions

    Why is salary transparency important?

     

    Salary transparency helps create a fair and accountable workplace. When companies share clear information about pay structures and salary ranges, it is easier to spot and address differences that are not justified. This openness supports fair hiring, reduces gender pay gaps and builds trust between employers and employees. It also improves the candidate experience, as many people now expect clarity before they apply. Salary transparency strengthens fairness and helps companies manage pay in a consistent way.

    What does “equal pay for equal work” mean?

     

    Equal pay for equal work means people doing the same job, or work of equal value, should earn the same pay. This is based on objective, gender-neutral factors such as responsibilities, experience, qualifications and performance. The EU Pay Transparency Directive supports this by asking companies to explain any pay differences with clear and measurable criteria. This helps employees understand how pay decisions are made and supports a fair workplace.

    What is the gender pay gap?

     

    The gender pay gap measures the difference in average earnings between men and women across a company or labour market. It does not compare people doing the same role. Instead, it reflects broader issues such as access to senior positions, progression opportunities, negotiation practices and how different roles are represented. The EU Pay Transparency Directive aims to reduce these gaps by increasing access to pay data, requiring companies to report disparities and prompting action when gaps exceed legal limits. Greater visibility encourages more equitable pay practices.

    What is the difference between pay equity and pay transparency?

     
    • Pay equity is about fair pay for employees based on their role and performance, free from bias. It focuses on ensuring people doing the same work or work of equal value are paid fairly.
    • Pay transparency is about openly sharing information on pay ranges, pay structures and how pay decisions are made. Transparency does not guarantee equity, but it makes unfair differences easier to spot.
    • Together, pay equity and pay transparency support a fair workplace where gaps can be identified and corrected.

    How will the EU Pay Transparency Directive impact small businesses?

     

    Small businesses will also need to follow the directive, and some requirements will depend on company size. All employers must include salary ranges in job ads, avoid asking for salary history and use clear, gender-neutral criteria when setting pay. Reporting duties and joint pay assessments apply only to companies above certain thresholds. Smaller employers will still need to organise their pay structures and make sure they meet the rules. For many, this will be the start of building simple and consistent salary frameworks.

    Is salary transparency a good thing for companies?

     

    Salary transparency brings clear benefits for employers. It helps build trust, supports a positive reputation and lowers the chance of pay disputes. Clear ranges can also speed up hiring by setting expectations early and attracting candidates who value openness. It may mean updating some processes, but many companies find it leads to better retention, improved fairness and more consistent pay decisions. When handled well, it supports both compliance and good people practices.

  • Preparing your company for pay transparency

    Get all the resources you need to navigate pay transparency compliance with confidence. Complete the form to receive our full Salary Transparency asset pack,

    Here is what you will get when you fill out the form:

    1. Our new Salary Transparency Recruitment eBook
    2. Our EU Pay Directive Cheatsheet
    3. Our “Understanding the EU Pay Transparency Directive” webinar recording and presentation
    4. Our Salary Transparency Starter Pack

    Select the option that best matches your needs to download the kit:

    Thank you for submitting the form

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