The EU's Pay Transparency Directive (2023/970) requires equal pay for equal work and work of equal value, assessed through four factors: skills, effort, responsibility, and working conditions—applied consistently via transparent, objective pay structures.
Where Cyprus Stands
Cyprus's transposition is in progress, with the draft bill proceeding through parliamentary review following public consultation that closed on 4 December 2025. With the recent parliamentary elections resulting in a new government now forming, and the 7 June 2026 EU deadline weeks away, meeting the transposition deadline appears unlikely, but employers should not postpone preparation.
EIGE's New Toolkit
The European Institute for Gender Equality (EIGE)—the EU's specialist agency on gender equality—recently issued guidance on gender-neutral job evaluation to operationalise the Directive. The toolkit includes:
- Job evaluation methodologies for consistent role assessment and comparison
- Analytical criteria and weighting systems that don't undervalue work typically performed by women
- Pay structure review tools for auditing pay scales and identifying unjustified differences
- Implementation guides for conducting mandatory joint pay assessments
These address one question: Can we objectively justify pay differences between roles?
The Challenge
This is a data and governance challenge, not just legal compliance. Many organisations struggle with inconsistent payroll data, differing job classifications, and undocumented legacy pay practices—not drafting policies.
The Takeaway
Success depends on clear pay structures, strong data visibility, and consistent decision-making. Pay transparency is becoming a governance issue, not just an HR issue.
Further reading HERE.
Please feel free to contact our team for advice or further details on Pay Transparency requirements.