Promotions fall squarely within the Directive's broader pay-transparency framework because Article 6 requires employers to make the criteria used to determine pay, pay levels and pay progression easily accessible to workers, and those criteria must be objective and gender-neutral. That does not mean Article 5's recruitment disclosure rules automatically apply to every promotion. Some promotions occur entirely within an existing employment relationship rather than through an application for a new role. Employers should therefore document the promoted role, the pay range or level, the progression criteria and the reason for the individual's placement, while checking national law for any additional internal-recruitment or promotion disclosure requirements.
Jurisdiction: European Union
Article 6 Directly Covers Pay Progression Criteria
Article 6 of Directive (EU) 2023/970 requires employers to make the criteria used to determine workers' pay, pay levels and pay progression easily accessible to workers. Those criteria must be objective and gender-neutral. Promotions commonly involve a change in pay level or progression, so this provision is directly relevant even where no external recruitment occurs. Employers should therefore have a clear basis for how promotion pay is determined rather than leaving the amount entirely to individual manager discretion.
Promotion Pay Should Be Tied to the New Role or Level
When a worker moves into a higher-level role, the employer should identify the pay framework associated with that role or level. The promotion increase should not be based only on the worker's existing salary plus a standard percentage if that produces a result disconnected from the new job's value. A more defensible process starts with the approved pay band or level for the promoted role and then applies objective placement criteria such as relevant experience, responsibility, skills or other legitimate factors.
Workers Should Be Able to Understand the Progression Criteria
Article 6 is not limited to internal HR documentation. The criteria used to determine pay, pay levels and pay progression must be easily accessible to workers. Employers should therefore make the progression framework understandable enough that workers can see what factors influence advancement and pay growth. That does not require disclosing every confidential management discussion, but it does require more than an opaque statement that promotion pay is determined case by case without identifiable criteria.
Article 5 Does Not Automatically Govern Every Promotion
A promotion can occur through several different processes. A worker might apply competitively for a posted internal vacancy, or a manager might promote the worker within an existing role family without a separate application. Article 5 expressly applies to applicants for employment, so employers should not automatically state that its starting-pay disclosure rule applies identically to every promotion. The legal treatment can depend on how the promotion is structured and on national implementation. Article 6, however, remains highly relevant because pay progression is expressly within its scope.
Promotion Decisions Need Objective Gender-Neutral Reasons
The employer should be able to explain why one worker received a particular promotion increase or placement within the new band. Objective factors might include the responsibilities of the new role, relevant experience, skills, performance criteria or other legitimate considerations. The criteria should be applied consistently and without direct or indirect sex discrimination. If similar workers receive materially different promotion pay, the organisation should be able to identify the objective reason rather than relying on unexplained managerial discretion.
Document the Promotion Pay Decision
A useful promotion record can identify the former role, new role, old pay level, new pay level or range, objective placement criteria, decision-maker and any exception approval. The Directive does not prescribe this exact form, but documentation supports consistent governance and later equal-pay review. It also helps HR determine whether repeated percentage-based promotion practices are creating compression or unexplained differences between workers who move into comparable roles.
Check National Rules for Internal Promotions and Vacancies
Member States may adopt more detailed rules on internal recruitment, promotion processes, pay-range disclosure or worker access to pay criteria. Employers should therefore distinguish the EU baseline from local implementation. A central policy can require objective promotion criteria and documented pay decisions throughout the group, while country-specific guidance determines whether additional vacancy-stage disclosure or procedural rights apply when a promotion involves an internal application process.
Frequently Asked Questions
Does the Pay Transparency Directive require objective promotion-pay criteria?
Article 6 requires the criteria used to determine pay, pay levels and pay progression to be objective and gender-neutral and easily accessible to workers.
Does Article 5 automatically apply to every promotion?
No universal rule in the Directive says that every promotion is an Article 5 applicant process. The answer can depend on how the promotion is structured and on national implementation.
Should promotion pay be based only on a percentage of current salary?
That approach can preserve earlier pay differences. Employers should also assess the pay framework for the new role and apply objective placement criteria.
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.