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What does it cost to comply with pay transparency rules?

There is no fixed amount for pay transparency: the costs depend on your company size, whether you already have an objective job classification, and whether the reporting obligation applies to you.

What does it cost to comply with pay transparency rules?

There is no fixed amount to name, and anyone who says there is is making up a number that probably won't match your company. What you can know: the costs are determined by a limited number of factors, and you can assess these yourself before spending money anywhere. It comes down to your company size, whether you already work with an objective job classification, how many information requests you can reasonably expect, and whether the reporting obligation applies to you.

The costs are not in one line item. They are spread across job vacancy texts that need to be adapted, a job classification that must be based on objective and gender-neutral criteria, a remuneration policy that you must be able to demonstrate, a workflow for when an employee requests information, and — from one hundred employees onwards — a calculation module for the pay gap per category. Each of these components can be handled internally, supported with software, or outsourced. That largely determines the bill.

The biggest cost item: do you already have a job classification

If your company already works with a job classification system or a comparable system in which jobs are classified on objective grounds, a large part of the work is already done. Then you mainly need to check whether the classification is structured in a gender-neutral way and whether equivalent jobs are also grouped as such. If you lack such a classification, you start from scratch, and that takes considerably more time than reviewing something that already exists. For most SMEs, this is the line item that makes the difference between a few hours and a project of weeks. On the knowledge base with explanations for each obligation you will find what a gender-neutral classification actually means and what categories of equivalent work must meet.

Company size determines whether the reporting obligation counts

For fewer than one hundred employees, obligations apply without a threshold: the pay range in the job vacancy, the prohibition on asking about current salary, and the right of employees to information. That takes time to set up, but no ongoing calculation module. From one hundred employees onwards, the reporting obligation is added, with a calculation of the pay gap per category. That calculation requires reliable data and a fixed method, and that is precisely the moment when the choice between doing it yourself and using a system will weigh most heavily. If you are unsure whether your company falls below or above that threshold, the obligation checker with an indication in a few questions will give you an initial picture of this, without you needing to create an account.

What you can do yourself, and what requires structure

Adapting the job vacancy text and removing the salary question from your recruitment process is something you can usually handle yourself and without extra costs once you know what is expected of you. Handling an employee's information request correctly and on time, a remuneration policy that withstands scrutiny, and a pay gap calculation that you can substantiate: that is work that benefits from a fixed structure, because otherwise it is reinvented with every request. That is the distinction between what you can solve for free yourself and what requires a system around it. How that distinction looks in practice and where the information on our platform comes from is explained on the page about how it works.

Do it yourself, use tools, or hire external advice

Three routes are possible, and they are not mutually exclusive. You can handle it entirely in-house, which mainly costs time and carries the risk of overlooking something. You can use a system that structures the job classification, the remuneration policy and the calculation, without you having to devise the format yourself. And for the question of whether a specific remuneration difference is justified, a legal adviser or the competent supervisory authority remains the appropriate point of contact — that is an assessment that no system can make for you, and which we do not make either. An overview of what the structured part costs is available on the page with the rates.

Would you like to first find out where your company stands exactly before you spend anything? The compliance check and the knowledge base are free and can be consulted without an account, and provide a first, concrete answer to the question of what applies to your situation.

This article is general information and not legal advice.