Who needs to submit gender pay reports in Denmark?

Danish employers with 35 or more employees must submit gender-segregated wage statistics or an equal pay report by Dec. 31, 2024. Employers are not required to disclose this data publicly but must share it with employee groups.

What are gender-segregated wage statistics?

Gender-segregated wage statistics are calculated for groups of at least 10 employees of each gender, classified using 6-digit DISCO codes. These statistics aim to inform and consult employees about gender wage gaps within the organization.

What is the DISCO code used for?

The DISCO-08 classification system is the Danish adaptation of the International Standard Classification of Occupations (ISCO-08). It enables employers to compare employees with similar job functions, regardless of job title or educational background, to calculate gender wage statistics.

What is required in an equal pay report?

An equal pay report must include: A description of the terms used to determine men’s and women’s wages. Action-oriented initiatives to reduce gender wage gaps over a three-year period. Specific follow-up measures on the outlined initiatives.

What is the EU Pay Transparency Directive?

The EU Pay Transparency Directive will require all member states to implement pay transparency regulations by June 2026. Employers in Denmark and other EU countries will need to comply with these requirements, making a centralized global pay equity strategy vital for multinational employers.

What tools can help with Danish pay gap reporting?

Employers can use workplace equity software, like Trusaic’s PayParity and Regulatory Pay Transparency Reporting solutions, to simplify the reporting process, meet compliance deadlines, and develop a global pay equity strategy integrated into their total rewards and talent management systems.

Denmark Gender Pay Gap Reporting Deadline Is in December

Q: What happens if an employer in Denmark fails to comply with pay equity laws?

Employees can pursue damages if an employer does not comply with the Act on Equal Pay. The employer must prove that the principle of equal treatment has not been violated, making it critical to conduct regular pay equity analyses and address any unexplained disparities.

Danish employers with 35 or more employees must submit their 2024 gender-segregated wage statistics, or equal pay report by Dec. 31.

Employers are not required to publicly disclose gender pay gap data or file it with a Danish regulatory agency. However, they are required to calculate and maintain gender wage statistics for the purpose of sharing with employee groups.

Alternatively, if an agreement is reached with employees, an organization may submit an Equal Pay Report instead of the gender-segregated wage statistics.

Danish Pay Transparency Reporting Requirements

Gender-segregated wage statistics are required for groups of a minimum of 10 employees of each gender. This is calculated by 6-digit DISCO code for the purpose of consulting and informing employees of gender wage gaps.

DISCO-08 (DISCO) is the official Danish version of the international classification of job titles, International Standard Classification of Occupations (ISCO-08), which enables comparisons of employees with the same job functions regardless of their formal job title and educational background. ISCO is prepared by the International Labor Organization.

Need Help With Danish Pay Gap Reporting?

Employers are required to calculate gender-segregated wage statistics for employee groups corresponding to the 6-digit DISCO code. Codes are provided by the Denmark Statistics website.

Employers may submit their raw pay data to Statistics Denmark in the January survey in order to receive their gender-segregated wage statistics, or they may calculate the statistics independently.

Equal Pay Reports must include the following:

Description of the terms which are used to determine the wages of men and women in the enterprise.
Description of the action-oriented initiatives taken to prevent and reduce gender wage gaps. The initiatives may run over a three-year period.
Specific follow-up measures to be taken on the initiatives detailed in the report.

Pay is defined in the act as the “normal basic or minimum pay and all other payments paid out to the employee by the employer because of the employment relationship, be it payment in cash or in kind.”

Action Items for Danish Employers

Employers with 35 or more employees in Denmark should ensure they have conducted a pay equity analysis across gender.

Achieve Authentic Pay Equity and Ensure Compliance

From there, build your contextual narrative. Leverage detailed information about the difference between your raw and adjusted pay gap. Doing this correctly will satisfy the “reasons for such differences” requirement.

Once you’ve provided adequate context by providing the adjusted pay gap — developed from including relevant Wage Influencing Factors — you can outline your organization’s remediation strategy for the remaining unexplained pay gap.

Access our Pay Equity Deep Dive Series blog to learn more about how to approach your remediation strategy. This will inform your written statement.

Employees in Denmark can pursue damages if an employer fails to comply with the Act on Equal Pay to Men and Women. The employer must prove that the principle of equal treatment has not been violated. Thus, it is prudent for organizations to conduct regular pay equity analyses and remediate where pay disparities are unexplained.

Leverage Compliant Workplace Equity Software

Employers with operations in Denmark, or the European Union at large, should leverage available workplace equity software resources to simplify the process.

The EU Pay Transparency Directive, which will be enacted in some member states as soon as 2025 and will be in effect for all member states by June 2026, is the tipping point.

For large, multinational employers, this means a centralized global pay equity strategy is vital. Trusaic’s workplace equity software product suite and expert support enables you to develop a cohesive global pay equity strategy that will ensure compliance and integrate into your total rewards and talent management strategy seamlessly.

Our three-pronged approach is a cut above other solutions:

Leverage PayParity® and OpportunityParity™ to understand, explain, and resolve pay and opportunity disparities. And now, with R.O.S.A., you can optimize the spend of your remediation budget to ensure you are maximizing the ROI of each dollar spent.
Leverage the Regulatory Pay Transparency Reporting™ solution and easily complete required reporting by compliance deadlines.
Leverage the Workplace Equity product suite to communicate narratives and share salary ranges with confidence. Communicate the sources of your pay gaps, progress objectives, and corrective measures to employees and internal stakeholders. Show data-backed progress in your pay gaps over time.

Our comprehensive workplace equity software solutions and on-demand expert support is with you every step of the way. With Trusaic, you can proceed with confidence knowing you are working toward achieving pay equity with the backing of a robust methodology that is accurate, explainable, and complies with fast changing regulations.