Directive (EU) 2023/970 creates an EU baseline for employer gender pay gap reporting. Article 9 requires seven core measures: the gender pay gap, the gender pay gap in complementary or variable components, the median gender pay gap, the median gap in complementary or variable components, the proportion of women and men receiving complementary or variable components, the proportion of women and men in each quartile pay band, and the gender pay gap by category of workers broken down by basic salary and complementary or variable components. Employers with 250 or more workers first report by 7 June 2027 and then annually. Employers with 150 to 249 workers first report by 7 June 2027 and then every three years. Employers with 100 to 149 workers first report by 7 June 2031 and then every three years. National implementing law may impose broader or more detailed obligations.
Jurisdiction: European Union
Article 9 Creates a Structured EU Reporting Framework
The Pay Transparency Directive goes beyond individual pay-information rights by creating organisation-level gender pay gap reporting. Article 9 requires Member States to ensure that covered employers provide a defined set of information about pay differences between female and male workers. The framework is designed to show not only an overall gap but also differences in variable compensation, median outcomes, distribution across the pay structure and differences within categories of workers. This matters because a single organisation-wide percentage can hide where a gap is concentrated. Employers therefore need reporting data that can be traced back to worker records, pay components, categories of workers and a consistent reporting methodology.
The Directive Requires Seven Core Reporting Measures
Article 9(1) lists seven measures. Employers must report the gender pay gap, the gender pay gap in complementary or variable components, the median gender pay gap, the median gender pay gap in complementary or variable components, the proportion of female and male workers receiving complementary or variable components, the proportion of female and male workers in each quartile pay band, and the gender pay gap between workers by categories of workers broken down by ordinary basic wage or salary and complementary or variable components. These are separate measures, not interchangeable labels. A reporting process should therefore map each statutory metric to a defined calculation, data field and quality-control step.
Reporting Starts at Different Times Depending on Workforce Size
The Directive phases reporting according to employer size. Employers with at least 250 workers must provide Article 9 information by 7 June 2027 and every year thereafter. Employers with 150 to 249 workers have the same first deadline, 7 June 2027, but report every three years thereafter. Employers with 100 to 149 workers first report by 7 June 2031 and then every three years. In each case, the information relates to the previous calendar year. Employers below 100 workers are not subject to a mandatory Directive-level reporting threshold, but Member States may require them to report under national law and must not prevent voluntary reporting.
Mean and Median Gaps Answer Different Questions
The overall gender pay gap and the median gender pay gap should not be treated as duplicates. Article 3 defines the gender pay gap by reference to the difference in average pay levels between female and male workers expressed as a percentage of the average male pay level. The median gender pay gap instead compares the median female and male pay levels. The median is the point at which half of workers earn more and half earn less. An employer can therefore have a relatively modest mean gap but a larger median gap, or the reverse, depending on the distribution of workers and pay levels. Both measures are required because they illuminate different characteristics of the pay distribution.
Variable Pay and Quartiles Add Distributional Detail
Article 9 also requires employers to analyse complementary or variable components separately. This captures forms of pay beyond ordinary basic wage or salary and helps reveal whether bonuses, incentives or other variable elements contribute to gender differences. Employers must also report the proportion of women and men who receive such components. Quartile reporting adds another distributional view by dividing workers into four equal groups according to pay level, from lowest to highest, and showing the proportion of women and men in each group. Together, these measures can reveal whether one sex is concentrated in lower-paid parts of the workforce or receives variable compensation less often.
Worker-Category Reporting Connects Organisation-Level Gaps to Comparable Work
The seventh Article 9 metric requires the gender pay gap between workers by categories of workers, broken down by ordinary basic wage or salary and complementary or variable components. The Directive defines a category of workers around workers performing the same work or work of equal value, grouped in a non-arbitrary way using objective, gender-neutral criteria. This makes worker-category analysis especially important. It can show whether an organisation-wide gap is mainly driven by workforce composition or whether differences also exist within groups of workers whose work is the same or of equal value. Employers should therefore align reporting categories with defensible job-evaluation and classification methods rather than creating categories solely for reporting convenience.
Reporting Needs Governance, Validation and National-Law Review
Article 9 is not only a calculation exercise. The employer's management must confirm the accuracy of the information after consulting workers' representatives, and worker representatives must have access to the methodologies applied. The Directive also provides for communication and publication of reporting information through national arrangements. Employers should therefore assign clear owners for data extraction, calculation, review, management confirmation, worker-representative consultation and submission. Because the Directive requires national implementation, the final reporting calendar and process must also reflect the relevant Member State rules, which may specify submission platforms, formats, definitions, enforcement mechanisms or broader obligations than the EU minimum.
Frequently Asked Questions
How many gender pay gap metrics does Article 9 require?
Article 9 requires seven core reporting measures, covering overall and median gaps, complementary or variable components, receipt of variable pay, quartile distribution and worker-category gaps.
Do all employers have the same reporting deadline?
No. Employers with 250+ workers and those with 150 to 249 workers first report by 7 June 2027. Employers with 100 to 149 workers first report by 7 June 2031.
Does the report use the current calendar year?
Article 9 states that the required information relates to the previous calendar year.
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Official Sources
Requirements and practices differ by jurisdiction and organisation. Check current local law, official guidance and professional advice for a specific situation.