The EU’s Pay Transparency Directive (Directive (EU) 2023/970), adopted to strengthen the principle of equal pay for equal work between men and women, must be transposed into national law by Member States no later than 7 June 2026. Although this deadline may seem distant, employers should begin preparations now, as the first reporting obligations will already apply to data from 2026, due on 7 June, 2027.
The Directive introduces significant transparency and reporting duties. Employers will be required to provide job applicants with pay information upfront, ensure gender-neutral recruitment processes, and refrain from asking about candidates’ pay history. Employees will gain the right to request information about their own salary level as well as the average earnings of those performing work of equal value.
For larger employers, the Directive sets out strict reporting obligations. Companies with over 149 employees will need to publish data on gender pay gaps, including median pay data and a breakdown by pay band, with reporting frequency depending on company size. Where unjustified pay differences of 5% or more are identified, employers will be obliged to conduct joint pay assessments with employee representatives and take corrective measures.
The Hungarian transposition legislation setting out the detailed rules has not yet been adopted. Member States may also adopt more favorable regulations for employees on the basis of the Directive, so there may be additional obligations, and the exact requirements will become known on the basis of the transposition legislation. At the same time, it is worth starting preparations and reviewing internal processes in good time. This will enable employers to ensure that, as far as possible, they comply with the new requirements by the deadlines and reduce any legal and financial risks.
Our Employment Law team at Szecskay Attorneys at Law is ready to assist employers in understanding the Directive’s implications and preparing for compliance.
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