Pay Transparency: All you need to know!

This article answers the most common questions companies have about the EU Pay Transparency Directive (2023/970) and how Coverflex helps you prepare. National transposition applies from 7 June 2026.

• What is the EU Pay Transparency Directive (2023/970)?
• Does the Directive apply to companies with fewer than 100 employees?
• What is a gender pay gap and how is it calculated under the Directive?
• What does "work of equal value" mean under the Directive?
• What happens if a company does not comply with the Directive?
• Is the Coverflex Salary Transparency audit really free?
• How long does the Coverflex pay transparency audit take?
• Is payroll and salary data secure on Coverflex?
• What data does my company need to run the audit?
• Does Coverflex work for companies that do not yet have salary bands?
• How do I register for Coverflex Salary Transparency if I'm not a client?
• I'm already a client. How do I register?
  
   

What is the EU Pay Transparency Directive (2023/970)?

All member states must transpose it into national law by 7 June 2026. It sets out five obligations, and its core principles apply to all companies regardless of size.

Does the Directive apply to companies with fewer than 100 employees?

Yes. Rights 1 to 4 apply to all companies. Formal gender pay gap reporting only applies to companies with 100 or more employees.

What is a gender pay gap and how is it calculated under the Directive?

It combines the simple (unadjusted) gap with the adjusted gap, which controls for role, qualification, education and seniority. A gap of 5% or more triggers a correction obligation for companies with 100+ employees.

What does "work of equal value" mean under the Directive?

It means equal skill, effort, responsibility and working conditions, regardless of job title. It requires documented comparable groups, not just historical pay grades.

What happens if a company does not comply with the Directive?

Member states must establish sanctions. The reversed burden of proof means the company must prove no discrimination occurred - even below the reporting threshold.

Is the Coverflex Salary Transparency audit really free?

Yes. It is a one-off audit, free for any company. It is not a permanent free tier - ongoing access and reporting is paid, as a €2 per employee/month add-on.

How long does the Coverflex pay transparency audit take?

Under 15 minutes from upload to your first results. Full onboarding, including the function map and initial analysis, takes around two weeks.

Is payroll and salary data secure on Coverflex

Yes. Coverflex is ISO 27001 certified, with the same terms and data protection as the full Coverflex platform.

What data does my company need to run the audit?

The minimum is base salary, employee ID, gender, department and role. More data means a more precise adjusted gap. The AI-guided setup walks you through any data gaps, and you can upload your file in CSV or Excel.

Does Coverflex work for companies that do not yet have salary bands?

Yes. It is designed exactly for this. No pre-existing structure is required - the product builds your salary bands from scratch.

How do I register for Coverflex Salary Transparency if I'm not a client?

• Go to the Salary Transparency page;
• Enter your company's number of employees; 
• Follow the steps shown to get started for free; 
• An AI assistant guides you through onboarding, asking for the data it needs.

I'm already a client. How do I register?