Why You Can’t Wait to Prepare for the EU Pay Transparency Directive

Why You Can’t Wait to Prepare for the EU Pay Transparency Directive

Why You Can’t Wait to Prepare for the EU Pay Transparency Directive

Robert Sheen | April 17, 2025

The clock is ticking. With the EU Pay Transparency Directive compliance deadline fast approaching in June 2026, organizations across Europe — and global companies with EU-based employees — must act now to get ahead.

As of today, five jurisdictions, including the Netherlands most recently, have released draft legislation to transpose the Directive into national law. But even if your country hasn’t acted yet, waiting to begin preparations is a high-risk strategy.

Don’t Wait for Your Country’s Draft Law

The EU Pay Transparency Directive sets minimum standards that all 27 EU member states must incorporate into their own legislation. While the specific requirements may vary slightly from one country to another, the core obligations — pay gap reporting, salary transparency, and remediation — will remain consistent.

Even if your jurisdiction has not yet published a draft bill, you should already be preparing to meet the Directive’s baseline requirements. Delaying action increases the risk of being unprepared when your country announces its own law, leaving less time to implement the necessary processes and systems.

The Clock Is Ticking: One Compensation Cycle Left

Organizations must understand that they only have one annual compensation cycle left before compliance obligations begin. The compensation decisions made in 2025 will directly impact your 2026 pay equity reporting and remediation requirements.

To stay on track:

  • If your compensation cycle is in Q3 2025, select a vendor by the end of Q2 2025
  • If your compensation cycle is in Q4 2025, select a vendor by Q3 2025

This is not a last-minute compliance task. Organizations will need to perform comprehensive pay equity analyses, establish salary range structures, and prepare internal governance and narratives ahead of time.

Why Trusaic Should Be Your Compliance Partner

With more than 50,000 organizations impacted by the Directive, demand for proven, scalable compliance partners is growing rapidly. Trusaic is already trusted by leading global employers for enabling them to achieve pay equity and transparency through a suite of advanced, integrated solutions.

Advanced Pay Equity Analysis Software

Trusaic’s PayParity® solution delivers rigorous, legally-defensible analysis to help organizations understand, explain, and resolve pay inequities. Unlike basic solutions that only flag gaps, PayParity provides deep insight into the factors driving them — so you can act with confidence and precision.

R.O.S.A.™ – Remediation Optimization Spend Analysis

The EU Pay Transparency Directive requires employers to remediate unexplained pay gaps that exceed 5%. Traditional remediation methods are based solely on statistical significance. 

Trusaic’s proprietary R.O.S.A. tool is the only remediation solution on the market that allows filtering for practical and nominal significance to ensure you meet the EU compliance requirement. 

EU Compliance Management with RAPTR®

Once you’ve conducted your pay equity analysis and remediated, Trusaic’s RAPTR® (Regulatory Pay Transparency Reporting), solution will help you easily submit pay reports across all EU jurisdictions: 

  • Track country-specific requirements and deadlines
  • Access one-click, regulator-ready reports
  • Maintain a single source of truth for all EU pay transparency efforts

Trusaic doesn’t just help you meet EU deadlines — we help you present your pay story in the right context to regulators, employees, and stakeholders.

Salary Range Finder®: Achieve Proactive Pay Transparency

Compliance doesn’t stop at reporting. Organizations must ensure that pay equity is maintained during hiring, promotions, and compensation changes. 

Trusaic’s Salary Range Finder® equips HR and compensation teams to create and apply structured salary ranges that meet EU Pay Transparency standards — such as employee’s right to information requests — and mitigate risk.

Act Now — Time Is Running Out

There are tens of thousands of organizations that will be required to comply with the EU Pay Transparency Directive, and only a limited number of vendors offering truly comprehensive, global solutions.

By waiting, organizations risk missing critical implementation windows, relying on inadequate internal processes, or falling behind competitors that are already positioning themselves as leaders in the new EU Pay Transparency era. 

Prepare for Compliance with Trusaic

Trusaic is GDPR-compliant and ready to assist organizations in every EU member state. Our end-to-end solution set supports compliance with both the EU Pay Transparency Directive and the Corporate Sustainability Reporting Directive (CSRD), helping you go beyond baseline compliance to build sustainable, transparent pay practices.

Access our guide to see a quick overview of how we’re preparing organizations to comply. 

Now is the time to prepare. Trusaic can help you do it with confidence.