Pay transparency is a hot topic in the world of HR right now. The European directive and its imminent conversion into Belgian law will fundamentally change the way in which companies handle pay and recruitment. But what does this really mean for employers, job applicants, and the employment market as a whole?
In this blog post, we provide a clear overview of the directive’s impact, the challenges involved, and the practical steps that you can start taking today.
Pay transparency
Pay transparency means that companies are obliged to be open about their remuneration policy, both to applicants and current employees. This includes disclosing the starting salary or salary range in a job ad, employees’ right to request details of their own salary or the average salary of all their colleagues in similar roles or categories, and mandatory reporting on the gender pay gap.
Although the 7 June 2026 deadline still seems far away, it is best to start preparing now. This means centralising data, updating job descriptions, defining a clear pay structure and, above all, creating a culture of openness in the workplace. In Belgium, where there has historically been limited pay transparency and even a taboo on talking about pay in many cases, this is likely to require particular attention and effort.
What is changing for employers?
The introduction of pay transparency entails a number of specific changes and obligations relating to various aspects of HR policy, from recruitment to internal communication and reporting.
Job ads: From now on, employers must always provide information on salary and salary ranges in job ads. Job titles must be gender neutral, and employers will no longer be allowed to ask candidates about their previous salary.
Transparency during the employment relationship: Employees must be informed annually of their right to request information about their pay. If an employee requests this information, the employer must inform them of the individual salary and average salary per category (by gender) within two months. Employers may of course also choose to share this information proactively with their employees.
Reporting: If you have 100 employees or more, you are obliged to report on the gender pay gap. If the gap is greater than 5% and cannot be explained objectively, there will be an audit, and corrective measures will need to be taken.
What is changing for applicants/employees?
Job applicants receive clearer information about the salary package (information on the salary or salary range) before applying. This ensures fairer negotiations and fewer surprises. Of course, there is still room for negotiation, although it must be based entirely on objective criteria.
Employees will now be entitled to request information about their own salary and the average salary of colleagues in similar roles or categories. Employers must provide full and accurate information, and employees can ask for further clarification if needed. Privacy is still protected. The information concerns categories, not the salaries of specific colleagues.
In addition, employers are obliged to allow employees access to information on the criteria used to determine pay grades and progression.
What does this mean for the recruitment market?
Pay transparency will undoubtedly have an impact on the recruitment process as we know it now and bring about some fundamental changes. The expectation is that there will be reduced pressure during recruitment relating to pay, because both parties have more clarity about remuneration even before the start of the process. Thus there will be fewer counteroffers, and the importance of objective, transparent criteria will increase. Companies that organise their processes effectively will be seen as reliable and transparent, thereby gaining a better position on the employment market.
How can companies prepare for this?
Get started in good time: You only have one chance to gain your employees’ trust. Centralising data, writing clear job descriptions and preparing a transparent remuneration policy are all essential.
Analyse the current situation: Detect any gender pay gaps and, where necessary, take action to correct them.
Communicate clearly: Make sure that communication to employees and applicants is streamlined. These are all things that you can make a start on already.
Invest in HRIS: Use an efficient HRIS system (or upgrade your current one) to make pay decisions traceable. That way, you can justify later why certain disparities have occurred, for example during performance cycles or when granting new perks.
Pay transparency brings change, but above all more clarity and fairness for everyone. By taking steps now, ahead of time, you can build an attractive, future-proof employer brand.
