The aim of EU Directive 2023/970/EU on pay transparency is to reinforce the principle of “equal pay for work of equal value” and reduce gender pay gaps in the European Union.
Preparations to comply with the legal requirements set out in the directive must begin as early as 2026. This places a significant administrative burden on the employers concerned. The wage transparency module of the PIRAMIS™ human resources information system offers a cost-effective and scalable solution for compliance with the EU Wage Transparency Directive.
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Purpose and main content of the Directive
Transparency
Creates transparency in remuneration: obliges employers to disclose salary ranges during the recruitment process and to ensure that employees have access to comparable salaries.
Report Obligation
Introduces reporting requirements: companies with more than 100 employees must regularly report on gender pay gaps and, if the gap exceeds 5%, take measures to reduce it.
Legal remedies
Provides legal remedies: employees can enforce their right to equal pay through legal action, with the burden of proof falling on the employer.
Objective wage differences
It eliminates wage discrimination: it stipulates that wage differences must be based on objective, gender-neutral criteria.
Obligations
It applies sanctions: fines and compensation obligations apply in the event of a breach of the rules.
PIRAMIS™ – Wage Transparency module
The wage transparency module of the PIRAMIS™ human resources information system provides cost-effective support to companies in the development and modeling of wage bands and the production of detailed, legally compliant reports. L SOFT’s development directions are specifically based on the practical needs of HR, managers, and employees, so that transparent wages can become a real business advantage.
Key functions — the technical basis of transparency
- Job hierarchy and classification structure
- Grade-based salary bands (historical): assigning bands to jobs; tracking changes over time; identifying discrepancies
- Automatic determination of employee categories
- Modeling and fine-tuning: “what if” scenarios for individual and group wage increases; mid-year reviews, compliance checks.
- Reporting and data provision: preparation of reports in accordance with legal requirements, management and HR views (average, median, trends)
- Document integration: job descriptions and job compliance documents can be loaded and linked to the model.
👉 What are the business benefits of the solution offered?
With the PIRAMIS™ wage transparency module:
✅ The PIRAMIS™ salary transparency solution does more than just support compliance.
✅ The introduction of the software can improve employee trust and identify any unjustified wage differences within the organization.
✅ Using the software helps speed up compensation decisions at management levels.
✅ The transparent system thus results in better retention, clear communication, and a competitive employer brand.
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