The EU Pay Transparency Directive, which comes into force in June 2026, is one of the most significant labor market changes in decades and will transform how we view and assess compensation. According to our latest survey, only half of employers are ready for the directive. How prepared are you? Do you have a plan for managing and communicating your pay information?
Many see the directive mainly as a compliance requirement. Of course, it is — but at Benifex, we argue that it’s also an opportunity for employers to do what’s right while showing that they’re ahead of the curve. Fair pay and transparency build trust and strengthen the employer brand, and they are becoming increasingly important in the talent competition. For many younger employees, transparency is already an expected standard.
Our latest survey further highlights the importance of transparency: 64% of employees want to be able to compare their salary and benefits with colleagues at the same level within the organization. The demand is particularly strong among Gen Z and millennials. As openness around sustainability, culture, and values has become the norm, pay transparency and fair pay are the next natural step.
Challenges for employers
As with all major societal shifts, there are hurdles to overcome. We see four key challenges in particular:
- Pay mapping and analysis — many organizations currently lack the systems or processes to document pay structures.
- Communication and culture — HR and leadership need a clear pay philosophy, new ways of working, and tools to communicate and visualize pay and benefits.
- Increased administration — new reporting and information-sharing requirements mean a heavier administrative workload for HR.
- Risk of penalties — lack of compliance can lead to fines, sanctions, and demands for retroactive pay adjustments.
How Benifex supports the transparency journey
The directive requires that candidates receive pay information early in the recruitment process, and that employees understand how their pay is set, how they can grow, and how compensation compares to other roles. This creates high demands on HR and managers for precise and consistent communication.
Simply structuring pay data is not enough. To build trust, information must be understandable, accessible, and user-friendly – a natural part of the employee experience. That’s where we come in.
We don’t help HR organize the data, but through open API solutions, you can integrate your pay transparency data with our platform. We then help you explain and visualize the data, reducing the risk of non-compliance, building trust, and strengthening organizational culture and competitiveness.
Download the Pay Transparency Guide
In our guide Pay Transparency – from Future Trend to Business Requirement, we explain how. It includes:
- The background to why the directive was introduced
- A clear overview of what applies in Sweden and across the Nordics
- What our latest survey reveals about expectations and requirements around pay transparency
- Risks and opportunities for employers
- How Benifex can help you both comply with the law and gain a competitive advantage
If you want to learn more about pay transparency and how our product can help you lead the way toward a more just labor market, get in touch with us here!