Regulations on pay transparency are changing how companies recruit, remunerate, and report. Employers should already be preparing pay policies, analyzing potential pay gaps, and adjusting HR processes to meet new requirements.
We have prepared answers to the most frequently asked questions to help you understand the obligations arising from the Pay Transparency Directive and to properly prepare your organization for the upcoming changes.
Pay transparency
Check whether your company is ready to implement pay transparency
Pay transparency is a set of principles, mechanisms, and legal obligations aimed at building a proper remuneration structure and sharing information about pay in a way that:
enables the detection and elimination of pay inequalities,
strengthens employees’ position in relation to the employer,
ensures transparency of pay and promotion processes,
supports the achievement of gender equality in the workplace, particularly by combating the so-called gender pay gap.
We have prepared 15 key questions and answers that explain to employers what new obligations are imposed by the Pay Transparency Directive, who will be covered by the new regulations, what sanctions may apply for non-compliance, and how to prepare to avoid legal and reputational risks.
Pay transparency – what do employers ask?
1. What are the basic obligations of an employer under the Pay Transparency Directive?
The Directive imposes obligations on employers in four main areas:
Recruitment transparency – the obligation to disclose salary amounts or salary ranges already at the job advertisement stage or before the interview.
Transparency of pay policy – the obligation to establish and document gender-neutral criteria for pay, promotion, and access to training.
Employee access to information – the employee’s right to information on the pay levels of other employees performing the same or equivalent work.
Reporting pay gaps – the obligation to submit reports on differences in pay between women and men (applies to employers with ≥ 100 employees).
Fulfilling these obligations requires creating transparent pay structures and support from HR, compliance, and legal departments.
2. Is it necessary to include salary ranges in job advertisements?
Yes. Pursuant to Article 5 of the Directive, as well as the 2025 amendment to the Polish Labour Code referring to this provision, the employer is obliged to inform candidates about the expected starting salary or its range before the first interview – most often already in the job advertisement.
Salary ranges must be based on objective criteria – such as the value of a given position within the company structure or market benchmarks – and not be discretionary.
3. When are differences in remuneration acceptable?
Differences in pay levels must be objectively justified and cannot result from unequal treatment, in particular gender discrimination.
Permissible criteria for differentiating pay include, among others:
level of education and professional qualifications,
professional experience (including tenure with a given employer),
scope of responsibility and complexity of tasks,
level of autonomy and decision-making,
performance achieved (e.g., meeting targets or efficiency),
working conditions (e.g., shift work, harmful conditions),
professional mobility (e.g., willingness to travel, flexibility).
4. What is job evaluation and is it mandatory?
Job evaluation is the process of assessing the value of a given position within the organizational structure, or the value of a type of work (if positions are not distinguished), without reference to the individual holding it. It translates into pay levels across job categories and into the pay grid.
The Polish act implementing the Directive introduces an obligation to conduct job evaluation, and it will be necessary:
to demonstrate that pay differences are justified (e.g., during the evaluation of a pay report), or
to define “the same” or “equivalent” jobs.
It is essential to have an evaluation method based on gender-neutral criteria (e.g., qualifications, scope of responsibility, physical/mental effort, working conditions).
5. Will employers have to create documents describing pay and promotion rules?
Yes. The Directive requires that rules on pay, promotions, and training are:
defined in writing,
transparent and easily accessible to employees and their representatives,
gender-neutral, i.e., free from elements discriminating on the basis of gender.
For example: a bonus system based on a supervisor’s assessment must be supplemented with clear, measurable criteria enabling objective verification.
6. What remuneration information must an employer provide to an employee?
At the employee’s request, the employer must provide:
information about the employee’s own (total) remuneration,
information on average remuneration broken down by gender for categories of employees performing the same or equivalent work.
The employer must respond within a reasonable time (no longer than 30 days) and must not discourage the employee from exercising this right.
7. Can an employer prohibit employees from disclosing their pay?
No. Article 7 of the Directive explicitly prohibits pay secrecy clauses.
An employer may not:
prohibit an employee from disclosing their remuneration,
impose sanctions for sharing such information.
8. Which employers must prepare pay reports?
Reporting applies to employers with:
≥ 250 employees – annually,
100 – 249 employees – every 3 years.
The report will include, among others:
overall pay differences and those for each employee category,
the level of the gender pay gap.
9. What happens if a pay report reveals excessive pay differences?
If the pay gap is at least 5% and cannot be objectively justified, the employer will have to:
carry out a joint pay assessment with employee representatives,
develop and implement corrective measures,
monitor implementation and demonstrate progress.
10. Do pay transparency rules apply only to base salary?
No. Obligations cover total remuneration, i.e., in addition to base salary also other components and benefits, excluding those granted to all employees on the same terms and of the same value:
benefits in kind (e.g., car, phone, insurance, medical packages),
other financial and non-financial perks.
11. Will employers need to adapt payroll or HR systems?
In most cases – yes. The Directive requires:
collecting and processing pay data broken down by gender and job categories,
recording promotion paths and evaluation criteria,
reporting and creating documentation for employees.
Adjustments in ERP/HRM systems will be necessary, as well as training for HR staff and management.
12. What information must be provided to job candidates?
Before an interview, the employer must inform the candidate about:
salary range or starting pay level,
recruitment procedures, evaluation and selection criteria,
rules on promotion and remuneration (in summary form).
Failure to provide this information at the appropriate stage may result in legal violations and liability for damages.
13. Does the Directive apply to B2B workers and contractors?
As a rule, the Directive applies to employees within the meaning of national law. Therefore:
employment contract employees – are covered,
B2B collaborators – are not covered, unless Polish implementing legislation extends the Directive to civil-law contracts (which is not currently planned).
14. What are the sanctions for non-compliance?
Member States must ensure effective and dissuasive penalties, which may include:
administrative fines,
compensation for underpayment (up to three years back),
damages for pay discrimination,
reputational consequences for the employer (public reports, media coverage).
In court disputes, the burden of proof is reversed—the employer must prove that no discrimination occurred.
15. When do the rules apply and what should be done now?
The Directive entered into force on June 6, 2023, and Member States had until June 7, 2026 to implement it.
Poland has introduced partial implementation by adding new obligations to the Labour Code regarding recruitment processes.
The implementing act (second draft) is currently under parliamentary work.
Employers should already:
analyze pay systems and structures,
conduct or verify job evaluation,
implement an equality-based pay policy,
update recruitment procedures,
train managers and HR staff.
Pay transparency – how can we help?
We help employers prepare for the implementation of new obligations. Our support includes, for example:
remuneration policy audits,
analysis of internal pay regulations for compliance with the Directive,
identification and calculation of the pay gap,
job evaluation,
development of a transparent pay grid,
preparation of promotion and salary increase procedures,
adjustment of remuneration regulations,
support in pay reporting,
training for HR and management staff,
legal and communication support.
Not sure what obligations will apply to your organization and where to start? We will help you assess your company’s level of readiness and plan the implementation of pay transparency.
Magdalena WilkoszewskaDirector of The Labour Law Department, Attorney-At-Law TGC Corporate Lawyers
She specializes in labour law advisory, with particular focus on employment structures, restructuring processes, and employment disputes. She represents clients before courts of all instances and conducts settlement negotiations. She has extensive experience in the legalization of work and stay of foreign nationals, employee secondments, and workplace accident matters. She also advises on commercial law, company law, real estate, and data protection, taking part, among others, in transactional projects and due diligence processes.
Piotr KryczekLegal Counsel TGC Corporate Lawyers
Piotr Kryczek is an attorney-at-law specializing in employment law, personal data protection, intellectual property law, and competition law. He is consistently recognized as a leading employment law practitioner in the Chambers and The Legal 500 rankings. For many years, he has also been actively involved in pro bono work, including in cooperation with the Helsinki Foundation for Human Rights.
