On June 7, a European directive came into effect, aimed at establishing criteria for its implementation regarding salary transparency. Specifically, Law 2023/970 is mandatory for all companies. According to the EU, the average wage gap in Europe stands at 11%, while in Spain it is 8.5% (30% in pensions), with the goal set at 5%.
The implementation marks the conclusion of one of its deployment phases. As of June 7, 2027, the Gap Report will become mandatory. For companies with more than 250 employees, it must be prepared annually, while those with 150 to 249 employees must report every three years. Companies with 100 to 149 employees are also required to report every three years, with implementation time extending to June 7, 2031.
This law imposes certain pay obligations on all companies: primarily, a annual pay register disaggregated by groups, job positions, and gender. For companies with more than 50 employees, a Gender Equality Plan is required, alongside an audit of compensation with job evaluation and, if necessary, an action plan. 
Within the existing legal framework, the main regulations in effect are the Organic Law LO 3/2007 on Effective Equality, Article 28 of the Workers’ Statute, and the Royal Decrees RD 902/2020 on Pay Equality and RD 901/2020 on Equality Plans.
In my opinion, the essence of this directive applies to all workers. It seeks pay equality; the same work or work of equal value must receive equal compensation. It fosters good salary governance, requiring that policies be documented, including all salary bands, criteria for progression and career paths, job listings… This initiative impacts not just the Human Resources department, but several management departments as well.
The main general obligations from the start affect both the selection process and the entire employment relationship. It is noteworthy that during the selection process, asking about current or past salaries is prohibited. Additionally, gender criteria must be very objective and neutral.
During the employment relationship, employees have the right to know pay scales, criteria for compensation, and confidentiality clauses regarding salary are prohibited. A specific obligation is the Gap Report. As expected, companies that fail to comply may face penalties.
What actions should the Human Resources departments have taken or need to take? In my view, the first step is to review both internal policies and job evaluations, essentially conducting a self-diagnosis. Define compensation, levels, and salary bands. Ensure data systems are defined and prepared, as well as progression criteria and even selection processes.
In summary, as with everything, «be honest and appear to be.» «Do and demonstrate what you do.» Reporting and communication methods are fundamental. It is crucial to understand that pay equality is the purpose of this law. While rights already exist to some extent, there is a need to adopt greater awareness and demand.
Miguel Ángel Otin Lloro
General Secretary, Huesca Excellent Business Forum
