HR Glossary

What is Pay Transparency Directive?

An EU directive (2023/970) requiring employers across all 27 member states to disclose pay ranges to job applicants, report on gender pay gaps, and take corrective action when unjustified gaps exceed 5%, with full implementation by June 2026.

Why it matters in hiring

Pay Transparency Directive comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with P

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