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EU Pay Transparency Compliance

EU pay transparency compliance that shows which gaps survive once you explain them — and answers every worker within the legal deadline

Every pay-information request answered within the legal deadline.

See one case, screen by screen ↓
demo5of 53worker categories still at 5% or more once objective factors are taken out — 13 on the raw gap
demo4.6pointsof an 11.4% gap explained by two allowances, each cited to the policy that pays it
demo8daysfrom a worker's request to a signed answer, of the 61 days her two-month limit allowed
target100%of pay-information requests answered inside the two-month limit, none late
In short

What is EU Pay Transparency Compliance?

Software that helps an employer meet Directive (EU) 2023/970: answering workers' pay-information requests within two months, grouping jobs of equal value, and reporting gender pay gap indicators. EU Pay Transparency Compliance adds seven agents that propose categories, explain each gap with cited objective factors, check small groups and draft every answer and country report, for the Head of Reward to decide and sign.

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Updated

The problem

Why every pay request and every gap explanation is a spreadsheet project

Under Directive (EU) 2023/970 any worker can ask, in writing, for their own pay level and the average pay of women and men doing the same work or work of equal value — and the answer is due within two months. Each one needs the right comparison group, full-time-equivalent pay for the period, base and variable pay split by sex, a check that no colleague's pay can be worked out, and a letter in the worker's language. Reward teams build that by hand, request by request, while the clock runs.

The harder question is the gap itself. Which jobs are of equal value on skills, effort, responsibility and working conditions — and which part of each category's gap do objective, gender-neutral factors explain? From June 2027 employers with 250 or more workers report seven indicators a year, and a category with a gap of 5% or more that is not justified and not fixed within six months means a joint pay assessment with workers' representatives. Done country by country in spreadsheets, the explanation is rarely tied to the policy that pays each factor — which is exactly what a works council asks to see.

typical2monthsto answer each worker's pay-information request (Art. 7)
typical5%unexplained gap in a category that, unless fixed within six months, triggers a joint pay assessment (Art. 10)
demo13of 53categories at 5% or more on the raw gap, before any explanation
Where one pay-information request's hours goestimated
By hand15 days
With the solution1.3 days
  • Logging the request and identifying the worker1 → 0.1 d
  • Finding the comparison group of equal value4 → 0.2 d
  • Computing FTE pay and the averages for women and men3 → 0.1 d
  • Checking no colleague's pay can be worked out1.5 → 0.1 d
  • Writing and translating the letter4 → 0.5 d
  • Review, approval and sending1.5 → 0.3 d

Estimated split for one worker's request at a multi-country employer, by hand and with the solution.

How it works

How a gap is explained and a request answered

Seven agents group jobs of equal value, explain each gap with cited factors and draft every answer; the Head of Reward approves and signs.

What comes in
Data inJobs, payroll and requests · every EU entity, any language
Agents at work
Job content readerskills · effort · duties
National rules watchereach country's law
Then
Equal-value grouperfour factors
Then
Pay gap calculatorseven indicators
Then
Gap explainerobjective factors
Privacy guardsmall groups
Then
Response and report writertemplate · language
A person decides
Head of Rewardapproves and e-signs; HR legal agrees categories
What comes out
Raw and explained gap per category
Signed answer to the worker
Gap report per country
One case, step by step

One morning: the 5% line, a proposed category and Anna's answer

Northwind Bio has 8 EU entities, 5,920 workers and 53 worker categories. It is Wednesday 7 October 2026; the pay snapshot runs to 30 September and the first gap reports are due on 7 June 2027. Here is what happens, screen by screen, in the working solution.

  1. 01Wednesday morning

    Every worker category against the 5% line

    Priya Raman · Head of Reward, Europe

    Priya's home screen is not a greeting but a chart: every category of workers doing work of equal value, one dot per category sized by headcount, one lane per country, against a dashed 5% line. On the raw gap, 13 categories are at 5% or more — packaging and warehouse operators in the Netherlands highest at 11.4%. The first gap reports are 243 days away.

    “A gap of 5% or more that objective, gender-neutral factors do not explain — and that is not fixed within six months of the report — means a joint pay assessment with the works council.”

  2. 02One switch

    “Once explained” — 13 becomes 5

    Gap explainer

    She presses Once explained. Each dot slides left by the points that approved factors account for — shift premium, allowances, scale steps, role size and territory — leaving a dashed ghost where the raw gap was. Five categories stay over the line: packaging and warehouse operators NL 6.8%, commercial field DE 6.1%, managers NL 5.6%, managers IT 5.3%, engineers and validation IE 5.2%.

    “Still over the line once explained — each needs a remedy within six months or a joint pay assessment.”

  3. 03One citation

    Every factor opens the policy that pays it

    Gap explainer

    For packaging and warehouse operators, the forklift licence allowance explains 2.7 points and the cold-store allowance 1.9. Each carries a citation; one click opens the Netherlands allowances policy, section 5: €85 a month for employees who hold a valid licence and drive reach trucks, €60 a month for work in 2–8 °C areas for at least half of their shifts.

    “Allowances are paid at the same rate to everyone who meets the condition.”

  4. 04Proposed — her decision

    Packaging and warehouse operators: work of equal value?

    Equal-value grouper

    The grouper scored both jobs from their job descriptions: packaging operators 312 points, warehouse operators 318 — 1.9% apart, inside the ±5% band. Packaging operators average €31,450 base pay and are 79 women and 13 men; warehouse operators €37,650 and are 17 women and 75 men. As one category the gap is 11.4%; the two allowances explain 4.6 points, and a 2019 market premium of 2.1 is not counted, leaving 6.8%. The works council asked for exactly this comparison.

    The agents propose; they never decide. Lena Ortiz (HR legal) and Omar Haddad (works council) are consulted on Priya's decision.

  5. 05The request log

    Every request on its two-month clock

    Priya Raman · Head of Reward, Europe

    Eleven requests are open, each with its comparison group, stage and days left: the works council's request for 14 packaging operators is due 20 October and waits on the category decision; Jonas Weber's in Germany is flagged as a small group. Anna Visser, QC analyst II in Leiden, asked through the HR portal on 29 September — due 29 November.

    “Every worker may ask for their own pay and the average pay of women and men doing the same work or work of equal value. Each answer is due within two months.”

  6. 06Run agents

    Matched, calculated, privacy-checked, drafted in Dutch and English

    Five agents

    Request intake logs Anna's request and starts the clock. Category match places her in NL-C04 Quality professionals, 140 people, agreed with the works council. The pay gap calculator finds her base pay of €52,224 against group averages of €54,860 for women and €56,210 for men — a 2.4% gap between women and men, 7.2% on variable pay. The response writer drafts five sections — her pay, who she is compared with, the averages, how pay is set and grows, her rights — with six citations.

    “Pay is inside the published range. Anna is on step 5 of 10 in grade 7 (€47,600–€61,900).”

  7. 07Approve and e-sign

    She signs with the meaning of her signature

    Priya Raman · Head of Reward, Europe

    The privacy guard confirmed 88 women and 52 men — above the minimum of 5 each, so no colleague's pay can be worked out. Priya checks the letter against its sources and signs: “I approve this response as accurate and complete.” The answer goes to Anna through the HR portal, with an English copy kept on file.

  8. 08Day 8 of 61

    Answered within the legal deadline

    Priya Raman · Head of Reward, Europe

    The request moves to Sent: answered in 8 days of the 61 the law allows. The signed letter can be downloaded, and every passage the answer rests on — the request, the pay snapshot, the category, the averages, the pay policy, Articles 7 and 12 — stays with it, read-only.

    “Sent Oct 7 through the HR portal · answered in 8 days of 61.”

  9. 09A small group

    Two men in the group — nothing goes out

    Privacy guard

    Jonas Weber, a medical director in Frankfurt, asked through the HR mailbox. His group, DE-C13 medical directors, has 5 women and 2 men: the averages would reveal a colleague's pay. The privacy guard stops the answer and offers the options the law allows — share the averages with the works council (Betriebsrat) only and tell Jonas he can check them there, share them with the national equality body on request, or give the grade range and his position in it without averages.

    “Nothing is shared until Lena Ortiz confirms.”

  10. 10The country report

    The Netherlands report, indicator by indicator

    Response and report writer

    The Netherlands gap report for 2026 pay shows the indicators the Directive asks for: mean gap 8.6%, median 6.2%, variable pay mean 14.1% and median 11.0%, variable pay received by 61% of women and 68% of men, and women 54% of the lowest pay quartile but 39% of the highest. Each category's gap is shown raw and explained. The approval chain runs Head of Reward, HR legal, works council, then Dana Okafor, managing director, who signs before filing by 7 June 2027.

Who it’s for

Built for everyone who answers for pay.

The same gaps and requests, seen by the four people who carry them — what their year looked like, and what it looks like now.

PR
Priya RamanHead of Reward, Europe · approves and e-signs every answer
Head of Reward, Europe
Before
Explains gaps country by country in spreadsheets and signs request letters built by hand, one comparison group at a time.
Now
Sees which gaps survive once explained, with the policy behind each factor, and signs answers already matched, checked and drafted.
LO
Lena OrtizHR legal counsel, EU employment · agrees categories and small-group answers
HR legal counsel, EU employment
Before
Gets pulled in late, when a letter might already reveal a colleague's pay.
Now
Receives every small group before anything is shared, with the options Article 12 allows, and approves each rule change.
OH
Omar HaddadChair, Netherlands works council (OR) · consulted on categories and the report
Works council chair, Leiden
Before
Asks why packaging operators are paid less than warehouse operators, and waits for a comparison no one has built.
Now
Sees both jobs scored on the same four factors, each score quoting its job description, and the gap that is left once allowances are taken out.
DO
Dana OkaforManaging director, Netherlands · signs the national report
Managing director, Netherlands
Before
Is asked to sign a gap report whose figures and explanations she cannot trace.
Now
Signs a report whose indicators, category gaps and explanations each cite their source, after HR legal and the works council.
Built on the engine

7 agents. Each with one job, and hard limits.

Seven agents group jobs of equal value, explain each gap with cited factors and draft every answer; the Head of Reward approves and signs.

Job content reader

Reads every job description and pulls the facts that decide equal value — skills, effort, responsibility and working conditions — each with the passage it came from.

  • Never infers anything from the job title alone
  • Reads no personal data; every fact cites a passage
National rules watcher

Watches the transposition of the Directive in each of the eight countries — thresholds, answer times, works council rights — and proposes rule changes for HR legal to approve.

  • Never changes a rule without HR legal's approval
Equal-value grouper

Scores each job on skills (30%), effort (20%), responsibility (30%) and working conditions (20%) and proposes categories of equal value within the band, explaining why jobs belong together.

  • Proposes only — HR legal and the works council agree
  • Every score cites the facts it used
Pay gap calculator

Computes the seven indicators of Article 9 and the averages a worker is entitled to — base and variable pay, full-time equivalent, mean and median, quartiles.

  • Pay data never leaves the restricted pay snapshot
  • Results rounded to 0.1 point
Gap explainer

Explains each category's gap only with objective, gender-neutral factors — shift premium, allowances, scale steps, role size — and shows what stays unexplained.

  • Never uses a factor switched off in Settings
  • Each explanation cites its policy; a market premium needs evidence for each job
Privacy guard

Checks every answer and report for groups small enough to reveal a colleague's pay, and routes them to HR legal with the options the law allows.

  • Fails closed — no average leaves below the minimum group size
Response and report writer

Drafts each pay-information answer from the approved template in the worker's language, and each entity's gap report section by section, with citations.

  • Never sends — a person approves and signs
  • Never names another worker
Head of Reward

Approves; HR legal agrees categories. The agents propose; a named person decides.

Ask in plain words

Ask about any request, category or country rule

Ask about any request, category, gap or country rule — or say what to change. Every answer shows the passage behind it.

Which categories could trigger a joint pay assessment?

Five categories stay at 5% or more once objective factors are taken out — 13 before: packaging and warehouse operators NL (11.4% raw, 6.8% left), commercial field DE (8.3%, 6.1%), managers NL (7.9%, 5.6%), managers IT (7.4%, 5.3%) and engineers and validation IE (8.1%, 5.2%). If these are in the June 2027 reports and not fixed within six months, each needs a joint pay assessment with the works council.

Draft the reply to Anna Visser

Anna Visser (QC analyst II, Leiden) asked on Sep 29 — due Nov 29. Her group is Quality professionals, grades 7–8: 88 women and 52 men, so it is safe to share. The letter will show her base pay of €52,224 against averages of €54,860 for women and €56,210 for men — a 2.4% gap. The draft is in Dutch and English for you to sign.

Are packaging and warehouse operators work of equal value?

The agents say yes. Packaging operators score 312 points and warehouse operators 318 — 1.9% apart, inside the ±5% band. Packaging is higher on skills and responsibility (line speed, visual inspection, batch reconciliation); warehouse is higher on effort and working conditions (loads, cold store, forklift traffic). Forklift and cold-store allowances explain 4.6 points of the 11.4% gap; 6.8% is left. The 2019 market premium is not counted: no evidence it still applies.

How do we protect colleagues in small groups?

The privacy guard checks every answer before it leaves: each sex needs at least 5 people in the group. Today one category is below: medical directors, Germany (5 women · 2 men) — Jonas Weber's request is with Lena Ortiz. The law lets us share those averages only with worker representatives, the labour inspectorate or the equality body. The suggested answer: share with the works council and tell Jonas he can check there.

Every screen

The working solution, as it ships.

13 screens from the working solution, on its sample data. Pick one to see it large.

The 5% lineEvery worker category in eight countries as a dot against the 5% line, on the raw gap: 13 at 5% or more, with the selected category's factors on the right.
Once explainedEach dot slides left by what approved objective factors explain; five categories stay over the line and need a remedy or a joint pay assessment.
The policy behind a factorA citation opens the allowances policy passage that pays the forklift licence and cold-store allowances.
A category of equal valueTwo jobs side by side, 1.9% apart on job evaluation points, why their pay differs factor by factor, and the decision to accept or keep them separate.
Pay-information requestsEvery request with its comparison group, stage and two-month clock, filtered by status, country and channel.
The drafted answerThe worker's request, translated; the letter with her pay, her comparison group and the averages for women and men; and the sources it cites.
Approve and e-signThe meaning of the signature, the signer, and where the answer goes.
Answered in 8 daysFive agent steps done, safe to share, signed and sent through the HR portal — 8 days of 61.
A small group stoppedFive women and two men: the averages would reveal a colleague's pay, so the answer waits for HR legal with three lawful options.
Job categoriesEvery job by evaluation points and average base pay, coloured by sex mix, and each category's raw gap and status by country.
The national gap reportMean and median gaps, variable pay, pay quartiles and every category's gap, raw and explained.
DashboardRequests received and answered, median time to answer, where requests come from, gap by entity and the gap left once explained.
Your rulesAnswer target, smallest group shared, letter language, equal-value band and each explaining factor switched on or off.
Governance

Built for scrutiny: cited, signed, never revealing a colleague's pay.

Every figure and factor cites its sourceEach explaining factor opens the policy passage that pays it, each job score quotes its job description, and each letter keeps the request, the pay snapshot, the category and the articles it rests on, read-only.
Agents propose, people agreeCategories of equal value and gap explanations are proposals. HR legal agrees categories after consulting the works council, and the Head of Reward decides remedies.
Small groups fail closedNo average is shared when either sex in the group is below the minimum. The answer stops and goes to HR legal with the options Article 12 allows.
Answers e-signed, reports signedEvery answer is e-signed by the Head of Reward with name, meaning and time. Each national report is signed by the entity's managing director after HR legal and the works council.
Pay data stays restrictedIndividual pay lives only in the restricted pay snapshot used by the calculator, and country HR sees only its own entity.
Every change on the audit trailEach agent step, decision and signature is recorded with who, what and when. Switching an explaining factor on or off and every rule change is versioned and audited.
Configuration

Your pay policy and your country rules, not ours

What counts as an explanation, who signs and how small a group may be are settings — applied to every request, versioned and audited.

SettingDefaultChoose from
Our answer target30 daysStep up or down — the Directive allows two months
Smallest group we share5 per sexStep up or down — smaller groups go to HR legal
Letter languageLanguage of the request, English copy for the fileOn · Off
Tell every worker about the right once a yearAnnual notice through the HR portal, every JanuaryOn · Off
Equal-value band±5%Step up or down on job evaluation points
Allowed explanationsShift premium, forklift licence and cold-store allowances, step on the pay scale, size of role, territory size — market premium offOn or off for each factor
Approves and e-signs every answerPriya RamanPriya Raman · Country HR lead
Where requests arriveHR portal, HR mailbox, works councils and representativesEach channel on or off
Connections

Works with the records reward teams already keep

Job descriptions and gradesevery job in every entity, read for skills, effort, responsibility and conditions
Payroll snapshotbase pay, allowances, variable pay and hours for the reference period
Pay policiesallowances, shift articles, pay scales, job evaluation method, sales incentive plan
Pay-information requestsHR portal, HR mailbox and requests made through the works council
National transposition rulesthe Directive and each country's law or draft — thresholds, answer times, works council rights
What it changes

The difference, in numbers.

Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.

target
11days
median to answer a worker's pay-information request
Answered on day 11
the law allows two months
target
100%
of requests answered inside the two-month limit, none late
answered on time
target
5of 53
worker categories still over the 5% line once gaps are explained, down from 13
Raw gap13 categories
Once explained5 categories

“demo” = seen in the working solution, on its sample pay data · “target” = the design goal, measured in the live solution · “estimated” = our estimate · “typical” = published figures (Directive (EU) 2023/970, Articles 4, 7, 9, 10 and 12 — two months to answer a pay-information request, the 5% threshold for a joint pay assessment). People, companies and figures named on this page are fictional — characters and sample data in the working solution.

Questions

What reward and HR legal teams ask us.

What is EU pay transparency compliance software?

Software that helps an employer meet Directive (EU) 2023/970: answering workers' pay-information requests within two months, grouping jobs of equal value, and reporting gender pay gap indicators. EU Pay Transparency Compliance adds seven agents that propose categories, explain each gap with cited objective factors, check small groups and draft every answer and country report, for the Head of Reward to decide and sign.

How does it answer a worker's pay-information request?

Five agents log the request and start the two-month clock, place the worker in their category of equal value, compute their pay and the averages for women and men, check the group is large enough to share, and draft the letter in the worker's language with an English copy. The Head of Reward reviews the letter against its sources and e-signs it.

How does it decide which jobs are of equal value?

The job content reader pulls skills, effort, responsibility and working conditions from each job description, quoting the passage. The equal-value grouper scores the four factors with the agreed weights and proposes jobs within the band as one category. HR legal agrees each category after consulting the works council.

How is the explained pay gap different from the raw gap?

The raw gap compares women's and men's average pay in a category. The gap explainer then takes out only factors approved in Settings — such as shift premium, allowances, scale steps, role size or territory — each cited to the policy that pays it, and shows what is left. A factor without evidence, like the 2019 market premium in the sample, is not counted.

Can an answer reveal a colleague's pay?

The privacy guard is built to prevent it. It checks that each sex in the group has at least the minimum set in Settings — 5 by default. Below that it stops the answer and sends it to HR legal with the options Article 12 allows, such as sharing the averages with the works council only.

Does it draft the annual gap report?

Yes. The pay gap calculator computes the indicators for each entity and the report writer drafts the national report section by section from its template, with citations. It goes to the Head of Reward, HR legal and the works council, and the entity's managing director signs it.

Do people stay in control?

Yes. The agents propose categories, explanations and drafts; they never send an answer or change a rule. The Head of Reward approves and e-signs every answer and decides remedies, HR legal agrees categories and small-group answers, and managing directors sign country reports.

How long does it take to go live?

The Agentic Solution Engine builds and deploys it from your requirements and documents — your job descriptions, pay policies, a pay snapshot and each country's rules — and it goes live once every quality gate has passed. We will walk you through it on your own data first.

See it on
your pay data.

We'll run EU Pay Transparency Compliance on a sample of your own job descriptions, pay snapshot and requests.