Preparing for pay transparency: time is running out, only 1 year left!

The deadline for implementing "transparent" pay is fast approaching, with just less than one year remaining to prepare. By June 8, 2026, the European Union's directive on pay transparency must be incorporated into Belgian law. Acting now gives you a unique opportunity not only to comply with the new regulations but also to use pay transparency as a strategic advantage in the war for talent and in achieving ESG goals. 

Recent data from Eurostat shows that Belgian companies have made significant strides in closing the gender pay gap. While the European average was still 12% in 2023, Belgium fared much better, with a minimal pay gap of just 0,7%. Only Luxembourg outperforms Belgium within the EU.
 

Transparency as talent magnet

In today’s war for talent, companies need to stand out as attractive employers. The tight labor market allows candidates to choose from employers offering the most attractive packages. We see that it’s no longer just about competitive salaries; transparency in compensation and opportunities for growth are also key factors. Companies that proactively address the pay gap and are transparent about their compensation policies will have a wider pool of candidates. Ideally, this commitment also aligns with efforts to promote greater diversity and inclusion in the workplace, which not only enhances workplace culture but also fosters creativity and innovation within teams. 

Fair compensation is essential for retaining employees. Workers who feel valued and fairly compensated are less likely to leave their jobs, which helps reduce recruitment and training costs, and contributes to a stable and engaged workforce.