Mandatory wage transparency coming up from 2026: how to prepare your company properly?
April 2025 - From 2026, companies in the European Union - including in our country - will have to take into account new rules on wage transparency. The aim of these regulations? To create a fairer pay policy and close the existing gender pay gap.
As an entrepreneur, you will face additional reporting and administrative obligations. It is therefore essential to thoroughly analyse and adjust the wage policy in your company.
What does the new regulation mean?
Pay transparency is not a new concept. Legislation has long required employers to pay men and women equally for work of equal value. Yet there is still a lot of work to be done in this area. The new directive forces employers to be more open about their pay policies, both to job applicants and existing employees. This means that remuneration includes not only basic salary, but also variable compensation and benefits in kind.
The core of the regulations revolve around objective criteria for pay differentials, including (1) skills, (2) effort, (3) responsibility and (4) working conditions. As an employer, you must be able to justify pay differences within your organisation using gender-neutral and non-discriminatory criteria. You should group employees with equivalent functions in a transparent manner.
What specifically will change from 2026?
The new regulations impose additional obligations at three stages: during application procedures, during employment and in the context of pay gap reporting.
Transparency in job applications
Employers will no longer be allowed to ask job applicants about their previous salary. On the other hand, employers will be obliged to provide information on the starting salary or salary scale for the position. This must be based on objective and gender-neutral criteria, which will allow applicants to be better informed at the negotiating table.
This obligation applies to all employers, regardless of their company size.
Transparency during employment
Employees are entitled to clear and accessible information on:
the criteria used to determine pay
remuneration levels and growth trajectories
written information on their own pay and the average pay by gender within equivalent positions (on request, to be provided within 2 months)
In addition, as an employer, you must inform your staff of this right annually. This obligation applies to all employers.
Reporting on the pay gap
Employers should identify and report on the gender pay gap in their companies. The frequency of this reporting depends on company size:
· Less than 100 employees: voluntary reporting (depending on national legislation)
100 - 149 employees: reporting every three years from 2031 onwards
150 - 249 employees: reporting every three years from 2027 onwards
250+ employees: annual reporting as from 2027
Does the reporting show that a wage gap of at least 5 per cent exists within a certain job group, and cannot be explained objectively? Then you as an employer must take corrective action within six months. If this fails, a joint pay review is mandatory.
Potential risks
The directive provides strict safeguards for workers, including:
· trade unions must be involved in the process
· workers can enforce their rights through the courts
· workers can claim full compensation in the event of an established pay gap
· the burden of proof is reversed: if an employee can prove that there is a difference, the employer must prove that there is no discrimination
Moreover, violations of these regulations are expected to be included in the Belgian Social Penal Code, potentially leading to sanctions for non-compliance.
How do you prepare properly?
2026 still seems far away, but it is not. Therefore, a proactive approach is desirable, as it allows you to avoid potential fines and reputational damage. Some tips:
· Analyse your current pay policy: collect data on salaries and allowances
· Establish objective, gender-neutral criteria for pay based on skills, effort, responsibility and working conditions
· Create job categories based on a transparent and objective matrix
· Consult - if applicable in your company - trade unions and works councils early to ensure their involvement
· Correct pay differences now to avoid fines or mandatory pay reviews
· Communicate proactively about your pay policy and make transparency a core value in your organisation
· Training for hr and management: make sure your managers are well informed about the new obligations and how to answer employee questions
· Use digital tools to better manage and analyse payroll data.
