EU Pay Transparency Directive 2026

The EU has adopted new rules to combat wage discrimination and help close the gender pay gap. The Pay Transparency Directive will enter into force in January 2027 in Denmark. Read more here.

On 26 February 2026, the Ministry of Employment published a bill to amend the Equal Pay Act, which will implement the EU Pay Transparency Directive (EU 2023/970) into Danish law. The bill is an important milestone for Danish companies, which must ensure increased transparency and equal pay in line with the EU's minimum requirements.

1. Employees and applicants will have the right to information.

Employees and applicants have the right to information:

Employers are obliged to provide information about salary levels in connection with job postings or job interviews
Employees have the right to receive information about average salaries for the same work or work of equal value
Employers are obliged to inform employees annually of their right to receive salary information

Employees and applicants have the right to information:

Employers are obliged to provide information about salary levels in connection with job postings or job interviews
Employees have the right to receive information about average salaries for the same work or work of equal value
Employers are obliged to inform employees annually of their right to receive salary information

2. Employers must publish pay gaps.

Companies with more than 150 employees must in September 2028 report and publish the following:

The average gender pay gap
The average gender pay gap in complementary and variable components
The median gender pay gap
The median gender pay gap in complementary and variable components
The proportion of female and male employees receiving complementary or variable components
The proportion of female and male employees in each pay quartile
The gender pay gap per category of employees, broken down by ordinary pay and complementary or variable components

Companies with +150 employees must report for the first time in 2028 for the year 2027, and companies with 100-150 employees must report for the first time in 2031.

Companies with more than 150 employees must in September 2028 report and publish the following:

The average gender pay gap
The average gender pay gap in complementary and variable components
The median gender pay gap
The median gender pay gap in complementary and variable components
The proportion of female and male employees receiving complementary or variable components
The proportion of female and male employees in each pay quartile
The gender pay gap per category of employees, broken down by ordinary pay and complementary or variable components

Companies with +150 employees must report for the first time in 2028 for the year 2027, and companies with 100-150 employees must report for the first time in 2031.

3. Consequences of violating the directive.

The burden of proof shifts to the employer when they do not comply with pay transparency obligations set out in the Directive, e.g., by refusing to provide information requested by an employee.
Employees who have been subjected to pay discrimination on the grounds of gender have the right to full payment of back pay and associated bonuses for the entire period of employment.
The employer is obliged to carry out a joint pay assessment with employee representatives in the event of an unexplained pay gap of more than 5%.

The burden of proof shifts to the employer when they do not comply with pay transparency obligations set out in the Directive, e.g., by refusing to provide information requested by an employee.
Employees who have been subjected to pay discrimination on the grounds of gender have the right to full payment of back pay and associated bonuses for the entire period of employment.
The employer is obliged to carry out a joint pay assessment with employee representatives in the event of an unexplained pay gap of more than 5%.

4. Equal pay for the same work or work of equal value.

To define equal work or work of equal value, the Pay Transparency Directive requires that you have taken into account:

The company's job architecture: Jobs must be evaluated and placed in a job architecture that makes it possible to compare which positions have the same value.
The company's pay policy: It must be clear how the company determines pay. The criteria for pay setting, pay adjustment, and promotion must be based on objective and gender-neutral factors.

To define equal work or work of equal value, the Pay Transparency Directive requires that you have taken into account:

The company's job architecture: Jobs must be evaluated and placed in a job architecture that makes it possible to compare which positions have the same value.
The company's pay policy: It must be clear how the company determines pay. The criteria for pay setting, pay adjustment, and promotion must be based on objective and gender-neutral factors.