When the EU Pay Transparency Directive enters into force, the term categories of workers will become one of the most central, yet also one of the most misunderstood, parts of the regulation. All reporting under Articles 7, 9, and 10 is based on these categories.

But what does “category of workers” actually mean in practice?

The Starting Point: Equal Work or Work of Equal Value

The Swedish inquiry gives a clear definition:

“A category of workers consists of employees performing work of equal value”

When the job evaluation is complete, workers that perform work that is considered equal or of equal value should be placed in the same category.

This means that the category is not based on organisational belonging, such as department or title, but on the actual job requirements, level of responsibility, skills and effort. If two professions are assessed as having equivalent demands in terms of knowledge, responsibility, effort, and working conditions, they should be merged into a common category of workers.

Three Things to Understand

1. Categories of workers must not overlap.
   Each person can only belong to one category. If jobs that were initially assessed as equal are later found to be of equal value, they must be merged.
   
   

2. Work of equal value is the core concept.
   Reporting according to Articles 7, 9, and 10 must be based on these groups. Comparisons and pay gap analyses are made within them. In Sweden, organisations must also continue to analyse based on equal work and female-dominated groups, since these requirements remain in the Swedish Discrimination Act.
   
   

3. Discrimination within equal work is still prohibited.
   The fact that categories are based on work of equal value does not mean that differences within the same role can be ignored. Discrimination within equal work must still be addressed, for example by defining and analysing subcategories.

A Practical Example from a Hospital

Imagine a hospital with 80 nurses, 20 doctors, 15 assistant nurses, 10 medical secretaries, 15 physiotherapists, and 10 fire and safety officers.

The nurses form one category since they perform equal work. However, if a job evaluation shows that the work of nurses and fire and safety officers is of equal value, they should be placed in the same category of workers.

When that happens, "nurses" disappears as a separate category and merges with fire and rescue guards to form a category of work of equal value. As a consequence, a category of workers must consist of work of equal value, unless there is only one job profile within a category. Subcategories can then be used to analyse and manage pay differences within equal work.

How the Definition Affects Articles 7, 9, and 10

Article 7 – Right to Information
Average pay must be calculated for women and men within categories of workers who perform equal or work of equal value.

Article 9 – Reporting
Pay differences must be reported within categories of workers, meaning between groups performing equal or equivalent work.

Article 10 – Joint Pay Assessment
The analysis and justification of any differences must be carried out within these categories. This means that work of equal value is central to how the Directive is applied.

Sysarb’s Methodology for Building the Right Categories

Sysarb has developed a methodology that combines objective job evaluation with data-driven categorisation that meets the Directive’s requirements.

Through the Structure module, the categories of workers required under Articles 7, 9, and 10 are created based on a gender-neutral factor plan.

Once the structure is in place, analyses are carried out in the Analyze module, where Sysarb’s statistical models determine whether pay differences within each category can be explained by objective factors or not.

In the Involve module, managers and employees then gain secure access to information about pay levels, career paths, and transparency throughout the organisation. This supports the Directive’s goal of openness and trust.

The Right Interpretation Leads to the Right Results

Understanding the term category of workers is crucial for fulfilling the Directive. If categories are defined too narrowly or based on organisational boundaries, the reports risk becoming both inaccurate and difficult to interpret.

With a data-driven and gender-neutral job evaluation, companies can achieve both compliance and a fair, transparent pay policy that strengthens trust between employers and employees.

Author: Linnéa Molin, Chief Advisory Officer at Sysarb
Last updated: 2025-10-15