Salary mapping and the new Pay Transparency Directive
The new EU rules and what we know about how it will be in Sweden
The European Parliament has voted in favour of a new directive aimed at ensuring equal pay for equal work or work of equal value between men and women. The new rules must be implemented by 7 June 2026 in EU member states. In Sweden, the government has investigated the issue through the state inquiry SOU 2024:40 and has presented proposals on how the directive should be implemented in Swedish law.
Let's take a look at the most important legislative proposals that Swedish employers need to know about:
Proposal for amendments to the Discrimination Act
The employee's right to transparency and the prohibition of employers asking job seekers about their salary
- Employers must provide information about starting salary or salary ranges to job seekers before hiring. In addition, employers are prohibited from asking about job seekers' previous salary from another employer.
- Employees have the right to receive information on their own salary and the average salary of others performing the same or equivalent work, broken down by gender, upon request. The information shall be provided in writing.
Salary mapping and analysis
- All employers with at least 10 employees must annually conduct a written salary survey to identify and analyze salary differences between women and men who perform equal or equivalent work.
- The survey should particularly take into account differences in salary developments linked to parental leave and other types of leave.
Payroll reporting for larger employers
- Employers with at least 100 employees must conduct wage reporting every three years (or annually for employers with more than 250 employees). The reporting must include information on wage gaps between women and men, including wage adjustments and other measures.
- If pay differences of 5 % or more are identified, the employer must present objective and gender-neutral criteria that justify these differences, or propose measures to address them.
Prohibition of retaliation
- Employers may not prevent employees from discussing their salaries with others, and the prohibition on retaliation is extended to include employees who exercise their right to receive information about salaries.
Sanction fees
- If an employer fails to submit salary reports or violates its obligations to conduct salary surveys, it may be required to pay a penalty fee of up to eight price base amounts.
Proposal for amendments to the Act on the Non-Discrimination Ombudsman
Increased responsibility for DO
- The Discrimination Ombudsman (DO) will have an expanded role as a monitoring body. The DO will receive pay reports, publish them and ensure that pay gaps are addressed. The DO will also report back to the EU Commission on the implementation of the directive.
Sanctions and remedies
- The DO is given the authority to request penalty fees if employers do not comply with the prescribed rules on salary reporting and salary mapping.
How can Swedish employers prepare?
Update salary mapping processes
Ensure that annual salary reviews are carried out in accordance with the new rules and that differences in salary linked to parental leave are taken into account.Implement payroll reporting systems
Larger employers must develop procedures for payroll reporting and ensure that all reports are submitted to the DO on time.Customize recruitment processes
Review recruitment procedures to ensure that no questions about previous salary are asked and that starting salaries are communicated in advance.Cooperate with trade unions
Collaboration between employers and trade unions is crucial in designing fair wage structures and conducting wage surveys.
Summation
Full name of the directive: Directive (EU) 2023/970 of the European Parliament and of the Council of 10 May 2023 on strengthening the application of the principle of equal pay for women and men for equal work or work of equal value through transparency in pay setting and enforcement mechanisms.
Name of the Swedish investigation:
SOU 2024:40
When are the new rules expected to come into force?
No later than June 2026, as required by the directive. More likely, it will happen in the latter part of 2025.
Good luck, and don't forget to get in touch if you have any questions.
Kind regards,
Christoffer Lewinowitz
Employer lawyer
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