Call for a “Stop the Clock” on the Transposition of the Pay Transparency Directive

With the current transposition deadline of 7 June 2026 approaching, we are calling on co-legislators to grant a two-year extension, write experts Camilla Gannvik and Elin Lilliehöök.

The EU Pay Transparency Directive, adopted on 10 May 2023, aims to reinforce the principle of equal pay for equal or equivalent work between women and men. While achieving pay equality is a clear and fundamental objective, the Directive introduces a wide range of new obligations that represent a major change for employers across Europe.

The new pay transparency measures are intended to address unjustified gender pay gaps, but they also risk creating significant costs and administrative burdens for companies. This comes at a time when the European Commission has emphasized the importance of reducing regulatory complexity to strengthen Europe’s competitiveness.

With the current transposition deadline of 7 June 2026 approaching, we are calling on co-legislators to grant a two-year extension. This additional time would give Member States and employers the opportunity to adjust systems, procedures, and national legislation, ensuring the Directive is implemented in a balanced and effective way throughout the EU.

We remain fully committed to closing the gender pay gap and promoting equality in the labour market. However, the current pace and complexity of the Directive could undermine these objectives by imposing excessive administrative demands. With less than four months left before the deadline, most Member States have not yet made sufficient progress. This delay is not due to lack of willingness, but rather reflects the unprecedented complexity of the Directive and the cultural and systemic changes it requires.

To ensure the legislation is practical, effective, and efficient, BusinessEurope has urged European Commission President Ursula von der Leyen, together with Member States, to initiate a two-year “stop-the-clock” period. Such a pause would be critical to:

• Simplify requirements, ensuring they are proportionate for both SMEs and larger enterprises.

• Respect national industrial relations, allowing alignment with existing national frameworks.

• Empower social partners, enabling employers and trade unions to lead implementation in a way that reflects labour market realities.

Implementing the Directive too quickly risks producing fragmented or poorly designed legislation, increasing administrative burdens without delivering real benefits for women. Legislation is effective only if it is clear, proportionate, and legally certain. A temporary pause would reduce legal uncertainty and allow stakeholders to focus on tangible outcomes rather than procedural compliance.

Based on extensive consultation at both EU and national levels, BusinessEurope has proposed a series of targeted amendments to make the Directive more workable while preserving its core objectives.

You can read the letter sent by BusinessEurope to European Commission President Ursula von der Leyen here.