Last updated: August 2025

Current status of the implementation of the EU pay transparency directive

Sweden is preparing to implement the EU Pay Transparency Directive (Directive (EU) 2023/970) into national legislation no later than 7 June 2026.

In May 2024, a government inquiry presented its report, SOU 2024:40 “Implementation of the Pay Transparency Directive”, with proposals on how the rules should be incorporated into Swedish law.

Instead of creating a brand-new law, amendments are proposed to the existing Discrimination Act (2008:567). This means the new requirements will be integrated into a legal framework that employers are already familiar with. The proposal builds on Sweden’s established system of pay equity audits but fills the gaps highlighted by the Directive.

The proposal was out for consultation until October 2024, and the government is now reviewing it within the Government Offices. The goal is for the legislation to be adopted in time to enter into force on 1 June 2026.

Key changes in Sweden

1. Pay transparency before employment

Employers will be required to inform job applicants of the starting salary or salary range for a position before salary negotiations begin. In other words, it will no longer be permitted to keep salary levels hidden until late in the recruitment process.

If a collective agreement applies to the role, the relevant provisions must also be disclosed. At the same time, employers will be forbidden from asking candidates about their current salary or salary history. This requires changes in recruitment practices—managers and recruiters must stop asking such questions.

All job postings and recruitment communication must also be gender-neutral to prevent discrimination from the very first step.

2. Transparency in pay setting and pay policy

Employers must clearly inform employees about the criteria and principles used for pay setting and salary progression. These criteria must be objective and gender-neutral, such as education, experience, performance, market value, or level of responsibility.

HR must document these criteria and make them easily accessible, for example through the intranet or the employee handbook. The inquiry emphasizes that employers can use insights from the annual pay equity audit to clarify and motivate their pay policies.

Although the Directive allows exemptions for small companies (<50 employees) regarding pay-progression criteria, Sweden’s proposal does not include such an exemption. Even smaller employers may therefore need to maintain a documented pay policy.

3. Right to information about pay

All employees will have the right, upon request, to receive written information about:

• their own salary

• the average salary for women and men in comparable roles

Employers must provide this information within two months of the request. The data must relate to relevant “categories of workers,” meaning employees performing the same or equivalent work.

Employers may require that the information is used only for enforcing the right to equal pay, but employees always have the right to disclose their own salary openly. Confidentiality clauses in employment contracts that prohibit salary discussions will be invalid.

Additionally, employers must inform all employees annually about this right and how to request pay data.

4. Expanded pay equity audit

Swedish employers are already required to conduct an annual audit to identify and remedy unjustified pay differences between women and men. This obligation will now be expanded.

Two key new elements:

• Employers must analyze salary progression for employees returning from parental leave compared to peers in similar roles, to ensure parental leave does not lead to unfair pay differences.

• Employers covered by collective agreements must involve trade unions in setting pay criteria, conducting job evaluations, and performing the pay equity audit itself. Employers without collective agreements must at least inform unions that have members in the workplace.

5. Pay gap reporting

Medium and large employers will be required to publish regular reports on gender pay differences.

According to the proposal, the reporting obligations are:

• ≥250 employees: annual report

• 150–249 employees: report every three years (first by 7 June 2027)

• 100–149 employees: report every three years (first by 2031)

The report must include, among other things:

• The overall gender pay gap (in %)

• Differences in variable pay (bonus, commission, etc.)

• Median pay gaps for both fixed and variable pay

• Share of women and men receiving variable pay

• Gender distribution in each pay quartile

• Pay gaps per worker category (equal or equivalent work)

If a category shows a 5% or greater difference that cannot be explained by objective reasons, the employer must provide a plan or corrective actions.

Reports must be submitted to the Discrimination Ombudsman (DO), which is proposed as the supervisory authority. Aggregated data required by the Directive will be published, while more detailed records may remain confidential under Swedish law.

Employers must also share this information with employees and unions, and company management must certify the accuracy of the data.

6. Joint pay assessment

If a pay report shows an unexplained pay difference of at least 5% between women and men within a category, and the employer does not remedy it within six months, a joint pay assessment must be carried out together with employee representatives.

The purpose is to analyze the causes of the difference and agree on concrete measures. The results must be shared with employees and submitted to the supervisory authority (likely the Discrimination Ombudsman, DO).

FAQ – common questions about Sweden’s pay transparency rules

Which employers are covered by the new requirements?

Virtually all employers in Sweden with employees are affected, but the requirements vary by size:

• 100+ employees → Broadest obligations, including gender-segregated pay reports to the DO. If reports show unexplained pay gaps ≥5%, a joint pay assessment with unions may be required.

• <100 employees → Must follow many rules (salary info to candidates and staff, annual pay audit), but are exempt from mandatory external reporting to the DO.

• Public and private sector → The Directive applies equally.

• Covered employees → All employees (permanent, temporary, part-time, and agency workers considered employees). Consultants are excluded. Interns are excluded unless formally employed.

What salary-related information must be reported or published?

Employers with 100+ employees must report:

• Average gender pay gap (%)

• Median pay gap

• Differences in variable pay

• Median pay gap in variable pay

• Share of women/men receiving variable pay

• Gender distribution per pay quartile

• Pay gaps per worker category (equal or equivalent work), for both base pay and variable components

If a gap of 5% or more is found in a category, it must be explained with objective reasons or followed by corrective measures.

How and where must reports be submitted?

Reports go to the Discrimination Ombudsman (DO), which will collect and publish the data. They will thus be public documents, accessible to media, interest groups, job seekers, and the general public.

Employers must also share key figures (averages, medians, quartiles, bonus outcomes) internally. The DO is expected to provide submission guidelines or a portal. Late submissions may result in injunctions or fines.

What sanctions apply if rules are not followed?

• Injunction with fine – Issued by DO or unions via the Discrimination Board

• Administrative fines – Proposed for missing reporting

• Damages – Employees may claim compensation if employers withhold information or violate rules

• Lost court cases – Reversed burden of proof means risk of losing without proper documentation

• Reputational damage – Beyond legal consequences, employers risk harm to their employer brand

When will the rules take effect?

• 1 June 2026 - Law takes effect in Sweden (pay transparency in recruitment, right to information, expanded pay audits, etc.)

• 2027 - First reports due for employers with 150+ staff (≥250 report annually; 150–249 every three years)

• 2031 - First reports due for employers with 100–149 staff, then every three years

• Joint pay assessments - Required when unexplained gaps ≥5% remain uncorrected for six months

Are there special rules for small companies (<100 employees)?

Yes. They are exempt from external reporting but must still:

• Provide salary info in recruitment

• Avoid asking candidates about past salaries

• Conduct annual pay audits (simplified if <10 employees)

• Have objective pay criteria and inform staff

• Respond to employee pay info requests within two months

• Annually inform staff of their rights

• Collaborate with unions if relevant

Small employers can also face disputes and reversed burden of proof. Building order and fairness early is recommended—it’s easier to do before reaching 100 employees.