The 5% Pay Gap Rule: When Does a Joint Pay Assessment Apply?
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The 5% pay gap rule: When does a joint pay assessment apply?
A 5% gender pay gap can mean more than a reporting concern. Under EU pay transparency requirements, employers may need to take further action when the gap meets specific conditions. This article explains what the 5% threshold means, when a joint pay assessment may be triggered, and what HR and compliance teams should understand before the reporting process begins.
Directive (EU) 2023/970 is not just about posting wages in job offers. Its most binding mechanism is elsewhere: a pay gap of at least 5% that the employer does not know how to justify. Many companies will discover this difference at the same time as their employees. The public debate on wage transparency has focused on what is evident: the pay range in advertisements, the end of the question about the previous salary, the right of the employee t…
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