Under Directive (EU) 2023/970, ordinary basic wage or salary and complementary or variable components should not be treated as one undifferentiated reporting field. Article 9 requires separate reporting on the gender pay gap and median gender pay gap in complementary or variable components, the proportion of women and men receiving such components, and the gender pay gap by category of workers broken down by ordinary basic wage or salary and complementary or variable components. Employers therefore need a consistent payroll mapping that separates basic salary from bonuses, incentives and other complementary or variable pay elements according to the applicable national methodology.
Jurisdiction: European Union
The Directive Uses a Broad Definition of Pay
Article 3 defines pay as the ordinary basic or minimum wage or salary together with any other consideration, in cash or in kind, received directly or indirectly from the employer in respect of employment. The Directive describes these other elements as complementary or variable components. Employers therefore need to understand the full pay package while keeping the underlying components identifiable for reporting.
Several Article 9 Metrics Focus on Complementary or Variable Pay
Article 9 requires the gender pay gap in complementary or variable components, the median gender pay gap in those components, and the proportion of female and male workers receiving such components. These are separate reporting measures, so one total-pay percentage cannot substitute for each statutory metric.
Worker-Category Reporting Requires a Separate Breakdown
Article 9(1)(g) requires the gender pay gap between workers by categories of workers to be broken down by ordinary basic wage or salary and complementary or variable components. This can reveal whether a difference arises mainly in basic pay, variable pay or both within groups of workers doing the same work or work of equal value.
Payroll Mapping Should Be Reproducible
Employers should document how payroll and compensation codes map to basic salary and complementary or variable components. The same type of payment should be classified consistently, and ambiguous items should follow applicable national methodology or official reporting guidance rather than undocumented assumptions.
Frequently Asked Questions
Does Article 9 require separate variable-pay reporting?
Yes. Article 9 requires mean and median gender pay gaps in complementary or variable components and the proportion of women and men receiving such components.
Are basic salary and variable pay separated for worker-category reporting?
Yes. Article 9(1)(g) requires category-of-worker gender pay gaps to be broken down by ordinary basic wage or salary and complementary or variable components.
Does the Directive classify every payroll code?
No. Detailed classification may depend on national implementing rules or official methodology.
Related Guides
Official Sources
Requirements and practices differ by jurisdiction and organisation. Check current local law, official guidance and professional advice for a specific situation.