Preparing your company for the new European requirements

The European Pay Transparency Directive introduces one of the most significant changes in how companies manage pay structures, recruitment and the employment relationship. The deadline for transposition into national law is 7 June 2026.

Although national implementing legislation has not yet been published, the EU-level obligations are already clear. Companies that prepare in advance will benefit from a real competitive advantage: reduced legal and reputational risks, clearer HR processes and increased trust from employees.

The HUMAN CENTRIC together with Morgan Sol provide an end-to-end pre-alignment and implementation service to ensure that the transition to the new requirements is structured, secure and fully controlled.

What pay transparency means

• communication of pay ranges in the recruitment process
• prohibition of questions regarding pay history
• use of objective, gender-neutral criteria in recruitment and pay setting
• employees’ right to access information on pay levels
• regular reporting on the gender pay gap
• non-discrimination, equality and fairness in remuneration

Company obligations – what you need to know

The European Pay Transparency Directive applies to all employers, regardless of company size.

All companies must implement the core principles of pay transparency, including in recruitment processes and salary-setting mechanisms.

Reporting obligations, however, depend on the size of the organisation:

• Companies with 250+ employees: first reporting deadline by 7 June 2027, based on 2026 data, and annually thereafter
• Companies with 150–249 employees: first reporting deadline by 7 June 2027, based on 2026 data, and every three years thereafter
• Companies with 100–149 employees: first reporting deadline by 7 June 2031, and every three years thereafter

In summary:
Implementation of the core pay transparency principles is mandatory for all companies, while pay gap reporting becomes mandatory for employers with 100+ employees.

Why you should act now

• 7 June 2026 is the deadline for national transposition
• 2026 data will form the basis for the first reporting cycle in 2027
• Lack of preparation may lead to legal and reputational risks
• HR processes must be redesigned in advance
• Recruitment becomes the first control point for pay equity compliance

How The HUMAN CENTRIC & Morgan Sol support you

1. Pre-alignment audit

• HR process assessment
• Identification of compliance and discrimination risks

2. Pay data structuring

• Data organisation and standardisation
• Preparation for reporting requirements

3. Responsible Recruitment

• Pay transparency in job advertisements
• Objective and non-discriminatory selection criteria

4. Team training

• Awareness and understanding of legal obligations
• Practical guidance for HR and hiring managers

5. Full implementation (following publication of Romanian legislation)

• Drafting and implementation of internal policies and procedures

Key benefits

• Clarity in an evolving regulatory landscape
• Risk reduction
• Transparent and defensible HR processes
• Pay data ready for statutory reporting
• Increased employee trust
• Predictability and legal certainty

Who this service is for

• Companies seeking to implement modern, transparent and non-discriminatory HR and recruitment practices
• Organisations without dedicated internal compliance or pay governance structures
• Companies aiming to mitigate reporting and enforcement risks
• Employers with 100+ employees
• Employers with fewer than 100 employees opting for voluntary reporting

Why The HUMAN CENTRIC & Morgan Sol 

• Over 18 years of expertise in recruitment and pay structures
• A practical, business-oriented approach
• Strong legal and compliance partnership