Article 9 of Directive (EU) 2023/970 requires covered employers to report specific information about complementary or variable pay rather than reporting only one headline gender pay gap. The required information includes the gender pay gap and median gender pay gap in complementary or variable components, the proportion of female and male workers receiving those components, and category-level gender pay gaps broken down between ordinary basic salary and complementary or variable components. Employers with 250 workers or more and those with 150 to 249 workers have their first Directive-level reporting date on 7 June 2027. Employers with 100 to 149 workers enter the reporting timetable on 7 June 2031. National law determines the practical reporting mechanism and can impose additional requirements.
Jurisdiction: European Union
Article 9 Requires More Than One Variable-Pay Metric
The Directive does not treat variable compensation as a footnote to the headline gender pay gap. Article 9 requires employers within the reporting timetable to provide the gender pay gap in complementary or variable components and the median gender pay gap in those components. It also requires the proportion of female and male workers receiving complementary or variable components. These measures answer different questions. The average and median gaps show differences in amounts, while the participation measure shows whether women and men have similar access to variable reward. Employers therefore need component-level data rather than a single undifferentiated annual-pay total.
Category-Level Reporting Separates Basic and Variable Pay
Article 9 also requires the gender pay gap between workers by categories of workers, broken down by ordinary basic wage or salary and complementary or variable components. This is important because an organisation-wide figure can conceal different patterns. One category may have a small base-salary gap but a substantial bonus or commission gap, while another may show the reverse. The worker-category structure therefore needs to be defensible and connected to the employer's work-of-equal-value methodology. Reporting systems should preserve enough detail to calculate both parts of the category-level comparison without reconstructing the dataset manually at the deadline.
The First Reporting Dates Depend on Employer Size
Article 9 phases reporting by workforce size. Employers with 250 workers or more must provide the required information by 7 June 2027 and every year thereafter. Employers with 150 to 249 workers also have a first reporting date of 7 June 2027, but report every three years after that. Employers with 100 to 149 workers first report by 7 June 2031 and then every three years. The information relates to the previous calendar year. Employers should check national implementing law for the method used to determine workforce size and for any national requirements that extend reporting to smaller employers or impose a different operational process.
Variable Pay Needs a Defined Data Taxonomy
A reporting process should identify which payroll and reward codes belong to ordinary basic pay and which belong to complementary or variable components. Bonuses, commissions, overtime compensation, allowances and other remuneration may sit in different systems or use inconsistent labels across countries. Employers should create a controlled taxonomy showing each component, its source system, reporting treatment, period, currency and data owner. The taxonomy should also document how one-off payments and benefits in kind are treated. This makes the calculation reproducible and reduces the risk that the same type of payment is included in one business unit but omitted in another.
Participation Rates Can Reveal Opportunity Differences
The requirement to report the proportion of women and men receiving complementary or variable components is especially useful because payment gaps can begin before the amount is calculated. If one sex is less likely to participate in a bonus, commission, premium or overtime arrangement, the organisation can show an unequal variable-pay opportunity even where recipients receive similar award percentages. Employers should therefore retain eligibility and participation information rather than only final payment amounts. Where participation differs, the next step is to examine plan eligibility, occupational distribution, working patterns and other objective factors before deciding whether an unexplained equity issue exists.
Reporting Should Be Supported by Methodology and Governance
Article 9 reporting should be treated as a controlled analytical process rather than a one-off spreadsheet. Employers need documented definitions, worker categories, source systems, calculation logic, quality checks and review ownership. The Directive provides for management confirmation of the accuracy of the reported information after consultation with workers' representatives, and workers' representatives are entitled to access the methodologies applied. The organisation should therefore be able to explain how variable components were classified and calculated. National implementing law should also be checked for the reporting portal, competent authority, format, publication process and any additional local requirements.
Frequently Asked Questions
Does Article 9 require a separate variable-pay gender gap?
Yes. It requires both the gender pay gap and the median gender pay gap in complementary or variable components, in addition to other reporting metrics.
Must employers report who receives variable pay?
Article 9 requires the proportion of female and male workers receiving complementary or variable components, so participation is part of the reporting set.
When do employers with 100 to 149 workers first report?
Their Directive-level Article 9 reporting timetable begins on 7 June 2031 and then repeats every three years, subject to any broader national requirements.
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.