From June 2026, a number of new pay transparency requirements will come into force in Denmark. The legislation stems from the EU’s Pay Transparency Directive, which aims to strengthen equal pay between the sexes and ensure greater openness in companies’ pay structures. And yes – it may sound heavy and complex. But don’t worry, we’ve cut it down to the basics for you.
In this blog post you’ll get a quick and easily understandable overview of what the directive actually means for you – whether you’re an employer or an employee. You won’t need to read long guides or dive into EU law to understand the implications. We’ll guide you through the key points and give you insight into how you can already start preparing for the upcoming requirements.
You can also read more and follow the latest news on this page.
Why do we need the Pay Transparency Directive?
In short: because the EU wants to tackle pay disparities between the sexes. The directive was adopted in April 2023 to reinforce the principle of equal pay for men and women for the same work or work of equal value. On average across the EU, there is a 13% pay gap between the sexes, and the pension gap is as much as 30%.
What are the biggest changes?
Transparency before hiring
Under the new rules, employers must inform job applicants of the starting salary or salary range for a position, either in the job advertisement or prior to the interview. Employers are no longer allowed to ask applicants about their previous pay.
Right to pay information for employees
All employees will have the right to request information about:
- Their individual salary level
- Average salary levels by gender for colleagues performing the same work or work of equal value
- The criteria used to determine pay and career progression.
Employers will have two months to provide this information.
Annual pay‐reporting for larger companies
Companies with at least 250 employees must publish information on gender pay gaps annually. Smaller companies (100–249 employees) must do so every three years. Companies with fewer than 100 employees are exempted from this obligation.
What does this mean for you as an employer?
Categorisation of employees
You must establish objective and gender‐neutral criteria for assessing and comparing the value of work. These may include factors such as:
- Professional and educational requirements
- Skills and competencies
- Effort and responsibility
- Nature of tasks.
Dealing with pay gaps over 5%
If the pay report reveals a gap of at least 5% between genders in a given category that cannot be objectively justified, the company must:
- Conduct a joint pay review in collaboration with employee representatives
- Take measures to rectify the gap within six months.
Reversed burden of proof
In cases of unequal pay discrimination, it will henceforth be the employer who must prove that no discrimination has occurred – not the employee.
What does this mean for you as an employee?
Better insight into pay conditions
You will have the right to:
- Know salary levels or salary ranges already at the job application stage
- Request information about how your pay compares with the average pay of colleagues
- See the criteria that determine pay and career development.
Strengthened position in salary negotiations
With access to pay information, you will be better able to assess whether you are being paid fairly, giving you a stronger basis for negotiating your pay.
When do the rules take effect?
The EU directive must be implemented into Danish law by 7 June 2026. This means:
- From that date all companies must comply with the transparency requirements in recruitment
- Employees may request pay information from that date
- Larger companies must prepare their first pay reports soon after.
What should you do now?
As an employer:
- Begin to establish objective criteria for job categorisation
- Review your pay structures to identify any unjustifiable disparities
- Prepare systems to collect and analyse gender‑segregated pay data
- Update employment contracts and job advertisements.
As an employee:
- Be aware of your new rights when the law comes into force
- Be ready to justify your salary expectations with objective criteria
- Consider speaking with your union representative about the company’s preparations.
Frequently Asked Questions
Will all companies have to publish salaries?
No. Only companies with over 250 employees must publish gender pay‐gaps annually. Companies with 100–249 employees must do so every three years.
Can I as an employee see my colleagues’ individual salaries?
No. You will have access to average pay levels broken down by gender, not individual salaries.
What happens if a company does not comply with the rules?
Companies may incur fines and other sanctions. Employees can claim compensation for unequal pay discrimination.
Do the rules also apply to small companies?
Yes, all companies must provide pay information to job applicants and employees. However, companies with fewer than 100 employees are exempt from the requirement to produce pay reports.
Can employers still have different salaries?
Yes. Pay differences are allowed provided they can be justified by objective, gender‑neutral criteria such as seniority, performance or particular skills.
Important to remember
The Pay Transparency Directive is not about dictating salary levels, but about creating transparency and ensuring that any pay differences are based on objective criteria – not gender. It’s an important step towards fairer pay practices in the Danish labour market.
Need help?
If as an employer you need advice in relation to the Pay Transparency Directive, we’re here to help. We can assist with updating your pay structures, establishing objective job categories and preparing you for the new transparency requirements.
If you want to keep up to date with news about the Pay Transparency Directive, click the link below. Here you’ll find the latest information gathered in one place – and the page is updated continuously so you stay informed of the applicable law.
