Pay Transparency Starting in 2026

The new Pay Transparency Directive, adopted in May 2023, requires companies to combat wage discrimination, particularly between men and women. It must be transposed into national legislation by 2026. The goal is clear: ensure equal pay for equal work and reduce the wage gap.

In Belgium, measures already exist, notably with Collective Labor Agreement (CLA) No. 25 and the Gender Law of 2007. Since 2012, companies with more than 50 employees have been required to analyze their pay structures every two years to ensure there is no wage discrimination. The new directive goes further, requiring companies with 150 employees or more to produce more detailed reports starting in 2026, followed by companies with 100 employees or more by 2031.

Five New Obligations for Employers

Employers will be required to:

1. Ensure an objective evaluation of job roles.

2. Guarantee that pay criteria are non-sexist and transparent.

3. Inform job candidates about the salary before hiring.

4. Provide workers the right to know the average salary in their professional category, without revealing individual salaries.

5. Submit a report detailing the wage gap by category and component of remuneration.

Pay Gap Reporting and Actions

If a wage gap of more than 5% is found and is not justified, the employer will have to take corrective measures. This could include evaluating job roles and creating an action plan in collaboration with employee representatives.

Salary Discrimination Remedies

In case of wage discrimination, workers can demand reimbursement of back pay, bonuses, and other benefits, as well as compensation for moral damages. The burden of proof will be reversed: the employer will have to prove that there was no discrimination.

Recommendations for Small Businesses

While small businesses are not subject to the same obligations, it is recommended for all organizations to implement a transparent pay policy. This not only strengthens their credibility but also facilitates recruitment and retention of talent.