In July 2026, the EU’s new Pay Transparency Directive will take effect in Sweden. This means that all member states must have implemented rules that ensure greater transparency in how wages are set. The directive applies to all employers and is primarily aimed at addressing unjustified pay gaps between women and men.
How does the directive affect your business? Here are some of the key points you need to be aware of!
New recruitment rules
Under the new directive, employers must provide information about the starting salary or salary range for the position being applied for, without the candidate having to ask. It is also no longer permitted to ask about the candidate’s previous salary.
No exact limit is specified for how wide salary ranges may be, but they must be reasonable and meaningful so that the candidate can conduct informed salary negotiations.
New requirements for pay surveys
As before, employers must conduct an annual pay survey to identify pay gaps between women and men. However, the new directive further tightens these requirements.Now, all employersmust :
- Document the assessment in writing, regardless of the number of employees.
- Analyze how parental leave affects salary growth.
- Clearly define the criteria used to evaluate the work in the assessment.
Reporting requirements
Companies with 100 or more employees must report pay gaps between women and men to the Discrimination Ombudsman. If the gap exceeds 5 percent without objective justification, an action plan must be submitted within six months.
The frequency of reporting depends on the size of the company:
- 100–249 employees: Reporting every three years.
- 250 or moreemployees: Annual reporting.
Employees' right to transparency
The right to transparency also applies to current employees, who are entitled to request information on the average pay levels of colleagues performing the same or equivalent work, broken down by gender.
The Path to a Fair Labor Market
The new Pay Transparency Directive sets the framework for how employers will handle pay, recruitment, and transparency moving forward. By developing clear and objective pay criteria, reviewing recruitment processes, and creating greater transparency in pay structures, you will not only meet the new requirements but also build trust, strengthen your employer brand, and contribute to a more equitable labor market.
Learn more about the Pay Transparency Directive
The Government’s report on the implementation of the Pay Transparency Directive
The Discrimination Ombudsman (DO) on the Pay Transparency Directive
The Gender Equality Authority on the directive’s impact on employers
