Data management
Learn to use employee data optimally in relation to pay transparency
Specialised consulting
Understand and prepare for the pay transparency law
Practical approach
Adapt internal processes to the equal pay legislation
Pay transparency - get a handle on the legislation and the data
With the pay transparency directive comes a change in practice for companies with employees in Denmark. This can seem overwhelming, as there are still many unknowns regarding the legislation.
At Azets, we stay updated and are ready to assist you and your company in meeting the requirements of the pay transparency directive — both those we know now and those that are on the way.
Companies are expected to comply with the new legislation by 6 June 2026, so now is the time to consider how your company will implement this in practice.
Below, we have summarised some of the areas where we can assist you in relation to the new pay transparency directive.
What is pay transparency?
Pay transparency can be described as the degree of openness and accessibility to information about the salaries a company offers its employees and the outside world. What was previously considered a private matter, such as salary levels and compensation, is increasingly becoming a topic that companies will be held accountable for in the future.
The pay transparency directive has been adopted to promote equal pay, particularly between the two genders. The new rules will make it easier for employees to negotiate salaries, as pay levels must be accessible. The legislation can thus help reduce the structural gender pay gap.
At present, we only have the EU directive on pay transparency, so it is still unclear what specific consequences the legislation will have in Denmark. At Azets, we closely follow the developments in the legislative process and provide updates when new information becomes available. Therefore, we recommend keeping an eye on this page to get the latest insights on the pay transparency directive.
We can help you achieve full compliance with pay transparency
The pay transparency directive will particularly impact HR functions within the field of employment law, as it involves increased requirements for data management, reporting, and analysis of pay structures and potential pay gaps within the company.
Legal support for pay transparency
With new legal frameworks come a range of changes to how you handle employment law, such as job architecture, pay policies, salary analyses, recruitment, and more. There are specific legal tasks to address here—tasks we can handle for you.
When you choose to work with our HR legal specialists, you gain experienced support that can help your company achieve compliance with new legislation and regulations.
Advisory and needs assessment
New requirements for the HR department will be introduced gradually as a result of new legislation and regulations. These requirements can lead to specific tasks that need to be addressed. The tasks could include data processing and registration, analysis and monitoring, reporting, and internal communication, among others. This is where we can help.
Our specialists can support your company in optimising its HR function, ensuring it is prepared for the more complex demands of legislation and technological developments.
Optimal use of data
To meet new requirements and opportunities within your company’s HR function, the correct and optimal use of data is crucial, as data from the company’s systems forms the basis for analysis, reporting, and decision-making support.
We can help you achieve precision in analyses, support compliance procedures, and create credibility and transparency in the company’s processes - both internally among employees and externally with authorities and the wider society.
How do you approach pay transparency?
The deadline for implementing pay transparency in your company might be closer than you think. Although the EU directive on equal pay has not yet been translated into specific legislation in Denmark, we recommend starting the process now. The first step is to gain an overview. Here’s what you should focus on:
1. Mapping pay gaps
Start by identifying the size and location of your pay gaps. This requires thorough work with data and reporting, which is often best managed with external support if you lack internal resources.
2. Review of pay policy
Your employees will increasingly take an interest in internal salary levels and compare them with their own. Therefore, it is important to review your pay policy. Ensure that the value of roles is assessed objectively, salary bands are clear, and employee compensation is determined based on gender-neutral criteria.
3. Market salary analysis
Pay transparency not only affects internal salaries, it will also create greater transparency across the market. To maintain your competitiveness, you should examine how your salary levels compare with competitors and adjust accordingly.
4. Transparency plan
Develop a plan to address the inequalities and issues identified during the mapping phase. This is an important step towards creating a transparent and fair pay structure.
Get help with the process
Do you need advisory support on pay transparency and specific measures for implementation? Contact us, and we will help you get started with clear processes and effective solutions.
Want more information?
You are always welcome to give us a call. If you want us to contact you, fill in the form and we will contact you as soon as possible.
+45 70 232 232
