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Pay Transparency Directive: What Companies Need to Do Before June 7th

May 29, 2026
Concepción García

The countdown has begun. The 7th of June marks a key date for European companies: it is the deadline for Member States to transpose the EU Directive 2023/970 on pay transparency, a regulation that will transform how organizations manage salaries, recruitment processes, and compensation policies. Beyond legal compliance, the new regulation requires reviewing internal structures, training managers, and preparing HR for a scenario where pay transparency and equity will play a central role.

What is EU Directive 2023/970 on pay transparency?

The EU Directive 2023/970 aims to strengthen equal pay between men and women through greater transparency in pay policies.

Although Spain already has measures such as pay registers and salary audits, this directive expands the obligations and rights of workers.

Companies will need to be able to justify pay differences, provide clear information, and ensure more objective and equitable processes.

The 7th of June is an important date because it marks the the start of a new era in compensation management. Waiting until the last minute can make adaptation much more complex.

New Obligations for Companies: What You Need to Have Ready

The regulations include changes that will directly impact HR and recruitment processes.

Key obligations include:

This requires companies to have more structured salary policies, defined criteria, and updated documentation.

What Happens If You Don't Comply? Penalties and Real Risks

Non-compliance can result in legal and reputational consequences.

Among the main risks:

Furthermore, the Labor Inspectorate will be able to review records, procedures, and measures adopted to ensure equal pay.

How to prepare HR and managers for new employee rights

Adaptation isn't just about modifying documents. It also involves preparing those who manage people.

Many team leaders will need to address salary conversations with a level of transparency they weren't accustomed to.

That's why it's important to train managers and HR on aspects such as:

Having prepared leaders will reduce conflicts and improve internal trust.

Practical steps to adapt your company before June 7th

Conduct a salary audit

Analyzing the current situation is the first step to adapting to the Pay Transparency Directive. This involves reviewing whether there are pay differences between positions of equal value, identifying potential pay gaps, and checking if current salary-setting criteria are consistent, objective, and applied uniformly across the organization.

It's not just about identifying inequalities, but understanding their origin: seniority, responsibilities, individual negotiation, or lack of defined criteria. This diagnosis will be the basis for any subsequent adjustments.

Document your compensation policy

Once the situation has been analyzed, it's crucial to have a clear and documented compensation policy. This means defining in writing the criteria the company uses to establish salaries, promotions, increases, and compensation reviews.

Having this structured information allows for internal consistency, reduces discretion in decisions, and facilitates the transparency required by regulations. Furthermore, it will be essential for justifying salary differences to employees or during inspections.

Train HR and team leaders

The adaptation to the new regulations depends not only on processes but also on people. HR teams and managers will play a key role in the practical application of pay transparency, especially in managing conversations with employees.

Training them in compensation criteria, clear communication, and expectation management will help avoid conflicts and ensure consistent messaging throughout the organization. Managing cultural change will be as important as legal compliance.

Review processes and documentation

The final step is to review all processes related to talent management. This includes how job offers are published, how professional categories are structured, and what internal documentation is used to justify salary decisions.

Updating these elements ensures that salary transparency doesn't remain theoretical, but is integrated into the company's daily operations. Furthermore, it facilitates decision traceability and reduces risks during audits or inspections.

Salary transparency and equity: an employer branding opportunity

Companies that get ahead will not only comply with a regulatory obligation: they will also strengthen their position as employers.

Transparency and equity are already among the factors many professionals value when choosing a company.

At Educa.Pro we help organizations prepare their teams through specialized training in leadership, people management, and business transformation, facilitating a more agile adaptation to changes in the work environment.

Because compliance is important, but turning change into a competitive advantage is even more so.

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