A joint pay assessment is a formal pay-equity review required by Article 10 of Directive (EU) 2023/970 when all three statutory conditions are met: pay reporting shows a difference of at least 5% in average pay level between female and male workers in any category of workers, the employer has not justified that difference using objective, gender-neutral criteria, and the employer has not remedied the unjustified difference within six months of submitting the pay report. The assessment is carried out in cooperation with workers' representatives to identify, remedy and prevent unjustified pay differences. It must cover workforce composition, average pay and variable components, reasons for differences, relevant post-leave pay improvements, remedial measures and the effectiveness of previous assessments.
Jurisdiction: European Union
Article 10 Creates a Formal Escalation From Reporting to Remediation
Gender pay gap reporting under Article 9 is not the end of the process. Article 10 creates a formal escalation mechanism for categories of workers where a significant average pay difference remains unexplained and uncorrected. The joint pay assessment is designed to move an employer from identifying a gap to examining why it exists, deciding whether it can be objectively justified and taking measures where it cannot. The legal trigger is not simply the existence of any gender pay difference. All three Article 10(1) conditions must be present before the Directive-level duty to conduct a joint pay assessment arises.
The Trigger Uses Three Cumulative Conditions
First, the employer's pay reporting must show a difference of at least 5% in the average pay level between female and male workers in any category of workers. Second, the employer must not have justified that difference on the basis of objective, gender-neutral criteria. Third, the employer must not have remedied the unjustified difference within six months from the date the pay reporting was submitted. Because the conditions are cumulative, a 5% difference alone does not automatically create a mandatory joint pay assessment if the difference is objectively justified or has already been remedied within the six-month window.
The Assessment Must Examine Both Pay Outcomes and Their Causes
Article 10(2) requires more than a headline percentage. The assessment must analyse the proportion of female and male workers in each category, average female and male pay levels and complementary or variable components, differences in average pay, and the reasons for those differences where objective, gender-neutral explanations exist. It must also examine relevant pay improvements following return from maternity, paternity, parental or carers' leave, identify measures to address unjustified differences and evaluate the effectiveness of measures from previous joint pay assessments.
Workers' Representatives Are Part of the Assessment Process
Article 10 requires the assessment to be conducted in cooperation with workers' representatives. The reasons for pay differences, where any are asserted, are to be established jointly by the employer and workers' representatives on the basis of objective, gender-neutral criteria. This means the assessment should not be treated as a closed internal analytics exercise. Employers need a process that allows the methodology, worker categories, pay data, explanations and remedial measures to be discussed and documented with the representative structure recognised under national law or practice.
Unjustified Pay Differences Must Be Remedied
Article 10(4) requires employers to remedy unjustified differences in pay within a reasonable period of time, in close cooperation with workers' representatives and in accordance with national law or practice. The labour inspectorate or equality body may be asked to participate. Remediation is therefore not limited to issuing a report. Employers may need individual pay corrections, structural changes to pay-setting rules, changes to progression or variable-pay practices, revised job evaluation or classification systems, or combinations of those measures depending on the cause of the inequality.
Job Evaluation and Classification Systems Form Part of Remediation
The Directive expressly states that implementation of measures arising from a joint pay assessment must include an analysis of existing gender-neutral job evaluation and classification systems or the establishment of such systems. This is important because an unexplained pay difference may reflect structural issues in how work is valued, grouped or progressed rather than a single incorrect salary decision. Employers should therefore connect joint pay assessment findings to the underlying compensation architecture rather than treating remediation only as an exercise in adjusting individual salaries.
Frequently Asked Questions
Does every 5% gender pay gap require a joint pay assessment?
No. Article 10 requires all three conditions to be met: a gap of at least 5% in a category of workers, no objective gender-neutral justification, and no remediation within six months of submitting the pay report.
Who conducts the joint pay assessment?
The employer conducts it in cooperation with workers' representatives.
What is the purpose of a joint pay assessment?
Its purpose is to identify, remedy and prevent pay differences between female and male workers that are not justified by objective, gender-neutral criteria.
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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.