The implementation of the pay transparency directive comes down to six steps: organizing job descriptions, job evaluation based on four objective criteria, grouping jobs into employee categories, calculating the gender pay gap, explaining differences above 5 percent, and preparing a report. It sounds simple, but in a company where salaries have accumulated over years, each of these steps reveals decisions that no one had previously documented. Below, we explain how to go through this step by step.
What is the Pay Transparency Directive?
The Pay Transparency Directive (EU Directive 2023/970), also known as the Wage Transparency Directive, is legislation designed to enforce the principle of equal pay for equal work or work of equal value between men and women. It is based on two pillars: transparency, meaning the right of candidates and employees to know the pay level and pay criteria, and disclosure of gender pay gaps. Member states were supposed to implement the directive by June 7, 2026.
In Poland, it is being introduced in two stages of new regulations. The first, concerning recruitment, has been in force since December 24, 2025. The second, which is the obligation to disclose pay differences in reports, is still in the draft law (UC127) and will come into effect no earlier than 2027.
Who does the obligation apply to and when?
The obligation to submit reports on gender pay gaps applies to employers with at least 100 employees. Smaller companies do not submit reports but are covered by recruitment transparency rules, which apply to every employer regardless of size.
According to the draft law UC127, the pay gap report must be submitted to the monitoring authority by March 31 for the previous calendar year. The frequency depends on the size of the employer:
- 250 or more employees – report annually.
- At least 100 employees – report every three years.
- Below 100 employees – no obligation; reports can be submitted voluntarily every three years.
When will we submit the first reports in Poland? We do not know yet. Maybe in 2027 for 2026. Or maybe later. We will see how quickly and with what provisions the law will ultimately be accepted.
How to implement new regulations step by step?
Step 1. Update job descriptions
Start with job descriptions, because without them, everything else is in limbo. The description should reflect what the employee actually does: scope of tasks, responsibilities, and working conditions, not just the name from the HR system. You will base your evaluation on these descriptions, so if they are outdated, the error will carry over to subsequent steps.
Step 2. Evaluate jobs according to four criteria
Job evaluation is the assessment of a job's value to the organization based on objective, gender-neutral criteria. The directive indicates four: skills, effort, responsibility, and working conditions. Evaluate all jobs using a single method, so that each evaluation can be logically justified. If you have trade unions, the criteria must be agreed upon with them.
Step 3. Group jobs into categories and create a transparent pay system
Combine jobs of comparable value into employee categories and set salary ranges for them. From this point on, pay is based on the value of the work, not on employment history or who negotiated better when hired. This creates a transparent remuneration system where the pay level of individuals in each position can be explained.
Step 4. Calculate the gender pay gap
Calculate the difference between the average pay of women and men in comparable categories, i.e., the pay gap. The directive requires several indicators: overall difference, median, difference in variable components (bonuses, allowances), and the distribution of men and women in quartiles. Calculate these in your company before the report does it for you. Below 5 percent, you are safe; above that, you have time to understand the cause.
Step 5. Explain and document differences above 5 percent
If the difference in a given category exceeds 5 percent and cannot be explained by objective factors, the directive triggers an obligation for a joint remuneration assessment with employee representatives. Here, the burden of proof is reversed: the employer must demonstrate that the difference results from objective reasons, not gender, and that the principle of equal treatment is maintained. Only what has been previously recorded can be proven, so document the reasons for differences on an ongoing basis when making pay decisions.
Step 6. Prepare a report and communication with employees
Prepare the company to submit a report to the monitoring authority and to provide employees with information about their pay level and average pay within their category. Remember one difference: most indicators are public, but the gender pay gap by employee category is not publicly disclosed. This indicator goes to employees and their representatives, and upon request, also to the labor inspectorate and the equality body.
Common mistakes during implementation
- Waiting for the law. The measurement year 2026 may already be underway. The later you start, the less time you have to explain and equalize differences.
- Confusing pay transparency with the pay gap. These are two different things. Transparency concerns providing information about pay ranges and criteria. The gap is a specific number that needs to be calculated and disclosed.
- Arbitrary pay ranges. Stating a range like 5,000–50,000 PLN in an advertisement does not meet the requirement. Pay ranges must be based on criteria.
- Calculating the difference without job evaluation. Without employee categories, it is impossible to compare work of equal value, and thus explain the difference.
- Treating the issue as an HR task. This is a management-level decision because it affects the payroll budget, legal risk, and company reputation.
Frequently Asked Questions (FAQ)
When do the new pay transparency regulations come into force in Poland? The transparency rules for recruitment have been in force in Poland since December 24, 2025. The obligation to disclose pay differences in reports is still in the draft law (UC127) and is most likely to come into effect in 2027.
Who is affected by the reporting obligation? Employers employing at least 100 employees. According to draft UC127, companies employing at least 250 people submit a report annually, and companies with 100 employees every three years, by March 31. The first reports are to cover companies with 150+ employees from 2027, and companies with 100–149 employees from 2031.
What is job evaluation? It is the assessment of a job's value to the organization based on objective, gender-neutral criteria: skills, effort, responsibility, and working conditions. It forms the basis for comparing remuneration for equal work or work of equal value.
Will the pay gap report be public? Most indicators will be. They are published by the monitoring authority, and the employer can additionally make them available. An exception is the gender pay gap by employee category, which is not publicly disclosed but is provided to employees and their representatives, and upon request, to the labor inspectorate and the equality body.
What does the reversed burden of proof mean? In a pay equality dispute, the employer must prove that the pay difference results from objective reasons, not gender. Therefore, the reasons for differences must be documented on an ongoing basis.
What are the consequences and sanctions for non-compliance with pay transparency regulations? For violating recruitment obligations, which are in force from December 24, 2025, a fine of 1,000 to 30,000 PLN may be imposed. The full sanctions for failing to submit a pay gap report will be specified in the law implementing the directive (draft UC127), which is not yet in force. Regardless, an employee whose right to equal pay has been violated can seek compensation, and due to the reversed burden of proof, the employer must demonstrate that they paid according to the law.
Can an employer prohibit employees from disclosing their salaries? No. New regulations prohibit confidentiality clauses that would prevent employees from disclosing their salary levels. Employees have the right to disclose their pay, among other things, to enforce the principle of equal pay, and the employer cannot forbid them from doing so.
What salary information must be disclosed in job advertisements? Candidates must receive information about the initial salary level or its range (brackets), based on objective, gender-neutral criteria. This information can be provided in the advertisement or communicated at the latest before the job interview. The employer cannot ask candidates about their previous salary.
What are the benefits of implementing pay transparency for companies and employees? For companies, a transparent pay system facilitates the defense of remuneration decisions, reduces the risk of disputes, and organizes remuneration policy, while also enhancing the employer's image. For employees, it means equal treatment, clear promotion and pay criteria, and the ability to know the pay level of individuals performing the same job.
How will pay transparency affect the labor market in Poland? Pay transparency is expected to reduce gender pay gaps and facilitate the comparison of job offers. In the labor market, this means more pay ranges in advertisements, pressure to organize pay scales, and less room for arbitrary salary setting. A stronger negotiating position for candidates is also an anticipated outcome.
What an employer should start with
Implementing the pay transparency directive is not just about sending one report, but about organizing the entire pay system: from job descriptions, through evaluation and a transparent remuneration system, to calculating the gender pay gap and documenting decisions. Those who start from the end, i.e., by calculating the difference without prior job evaluation, have the most difficult task.
If your organization is preparing for new pay transparency regulations and needs to conduct job evaluations, calculate the pay gap, or establish a transparent pay system, we can help you navigate this process so that it is legally compliant and defensible.
