EU ends wage discrimination: what does this mean for your company?

Who is affected by the new rules?

All employers within the EU, regardless of the sector, will feel this. But the obligations are not the same for everyone. The more employees, the heavier the obligations:

• Employers with more than 100 employees must periodically report on the wage gap.
• Smaller companies are currently exempt from this reporting obligation, although member states can impose stricter rules. They are still subject to other obligations such as providing wage information and wage transparency.

What changes concretely?

According to the EU, a lack of transparency is one of the biggest causes of the wage gap. The new rules address this with three clear obligations:

• Wage information at recruitment
  Applicants have the right to know in advance what salary or salary scale corresponds to which position. Asking about previous salary is no longer allowed.
• Right to wage transparency
  Employees have access to information about the average wages of colleagues in comparable positions, as well as the wage scales and criteria.
• Reporting obligation
  Companies with more than 100 employees must regularly report on wage equality within their organization.

What happens in case of non-compliance?

Employers who do not follow the rules risk severe sanctions:

• Administrative fines
• Compensation for employees
• Strict controls by national inspection services

From when?

Member states, including Belgium, must transpose the directive into national law by 2026.

5 steps you can already take today

2026 may seem far away, but preparations for the new rules should start today. Pay structures that ensure equal pay for equal or equivalent work cannot be set up in one day, let alone implemented in one day.

Those who take action now avoid surprises and present themselves as modern, transparent employers. Here are five concrete steps you can already take:

1. Define the core of the wage policy.

Establish the principles your organization uses to determine wages. Transparency and objectivity are the starting points.

2. Work with objective, gender-neutral criteria.

Think of elements such as skills, responsibilities, efforts, and working conditions. These form the basis for fair job classification.

3. Map the current situation.

Collect wage data, analyze wage differences, and establish job categories according to a clear, objective matrix.

4. Involve social partners in time.

By involving the works council or trade unions from the start, you increase support and avoid suspicion or resistance.

5. Ensure internal communication and training.

Proactively inform your employees about the ‘why’ of the policy and ensure that HR and managers are equipped with knowledge and tools to answer questions correctly.

How PKF BOFIDI Legal can help

At PKF BOFIDI Legal, we combine legal expertise with a thorough understanding of HR challenges. We help you not only to be legally compliant but also to think strategically about how your organization can use this regulation as a lever for modern personnel policy.

We support you in:

• Drafting or revising a wage policy with an eye for ESG criteria
• Analyzing wage data and job classification
• Setting up transparent procedures and documentation
• Communication and training strategies for HR and management
• Guiding consultations with trade unions or works councils

Ready to work proactively for more transparency and equality? We are ready to guide you legally and strategically. Contact our experts.

This article was written by Lotte De Wit, specialized in labor and social security law.