How Finnish companies can prepare for the EU Pay Transparency Directive

The EU Pay Transparency Directive represents a significant regulatory shift aimed at ensuring fair and transparent compensation practices across Europe. For Finnish companies preparations to meet the requirements are important to start as soon as possible. The directive is also an opportunity to build trust, equality and a transparent workplace culture.  

Finnish HR teams currently face common development needs, including creating structured job architectures, effectively identifying and analyzing pay gaps, and managing transparent internal communication about compensation. Addressing these challenges comprehensively requires expert consultancy and advanced technological solutions.

In this article, we introduce two complementary solutions: Perform & Pay, with its extensive expertise in designing clear, actionable reward and performance management structures, and Sysarb, offering an innovative platform for robust pay gap analytics and transparent communication. Together, Perform & Pay and Sysarb equip Finnish organizations with the strategic insight and powerful tools necessary to not only achieve compliance but also to foster a culture of fairness and transparency.

Understanding the EU Pay Transparency Directive

The EU Pay Transparency Directive (EU 2023/970) introduces new mandatory requirements aimed at enforcing the principle of equal pay for equal or equivalent work between men and women.. Organizations should specifically be aware that compliance becomes mandatory starting June 7, 2026, requiring timely preparations. Each member state will transpose the directive into local legislation, and details of the local laws will vary. Finland has not yet decided on the details of the implementation of the articles below. However, the articles set the minimum requirements for future implementation.  Key articles impacting Finnish employers include:

• Article 5: Employers must transparently disclose salary ranges to job applicants and are prohibited from inquiring about candidates' past salaries, reducing potential biases and discrimination.

• Article 7: Employees have the right to request and receive clear information about their individual salary and average salaries within their employee category, segregated by gender.

• Article 9: Organizations with more than 100 employees will be required to regularly report and publicly disclose gender-based pay gaps, providing transparency about internal compensation practices and gender distribution.

• Article 10: Companies demonstrating a gender pay gap of at least 5% must undertake comprehensive pay assessments (pay equity audits) and implement corrective actions in cooperation with employee representatives.

Non-compliance with these regulations could result in substantial financial penalties and reputational harm, emphasizing the need for proactive and thorough preparation.

The importance of building a solid foundation

Creating a structured foundation with clear job architectures and defined pay ranges is crucial for companies preparing for the EU Pay Transparency Directive. A robust job structure provides clarity around roles, responsibilities, and career paths, forming the basis for equitable and transparent pay practices. A structured foundation also ensures that clear communication related to pay is possible. 

Perform & Pay specializes in developing clear and actionable reward structures that align with organizational goals and culture. Leveraging long practical experience, Perform & Pay helps Finnish companies establish fair, market-aligned, and transparent compensation frameworks. 

The typical approach to ensuring compliance to pay transparency is to first define a roadmap of needed actions within the company, and then ensuring a solid job architecture built based on a job evaluation methodology. The next step after this is to define pay structures, processes, communication and training for people leads and HR., Perform & Pay supports organizations in laying a strong, compliant foundation for their approach to compensation and transparency.

Paul Puustinen from Perform & Pay emphasizes:

“Simplicity, clarity, and fairness in reward structures are essential for success. Companies that prioritize these elements in their compensation strategies not only ensure compliance but also build trust and engagement within their workforce.”

Turning structure into insights

Once a solid foundation of job structures and pay ranges has been established, companies need to translate these structures into actionable insights. Sysarb’s advanced analytics platform seamlessly integrates with the structured job architectures created by Perform & Pay, enabling Finnish companies to efficiently identify, analyze, and address pay gaps.

Sysarb offers robust analytical tools, including automated pay equity analyses, compliance reporting, and certification processes aligned with the EU Pay Transparency Directive. With Sysarb’s powerful technology, HR teams can quickly uncover hidden pay discrepancies, quantify potential issues, and prioritize actionable solutions. Additionally, Sysarb’s analytics not only highlight current gaps but also forecast potential future risks, enabling organizations to proactively manage their compensation strategies and anticipate regulatory challenges.

By leveraging Sysarb’s data-driven insights, Finnish organizations can not only meet compliance requirements but also strategically enhance their compensation practices to foster an equitable workplace, effectively mitigating risks and strengthening their employer brand. The combination of precise analytics and strategic guidance from Sysarb allows companies to confidently address identified pay inequities and drive meaningful organizational change.

Implementation and employee Involvement

Effective implementation and clear employee involvement are crucial to achieving sustainable compliance with the EU Pay Transparency Directive. Communication is key, as employees and managers must understand pay structures, how pay decisions are made, and the ongoing efforts to maintain pay equity.

Perform & Pay provides practical support for Finnish companies in implementing these changes, including tailored communication strategies, training programs for managers, and interim resources to support HR teams during critical transitions. This includes workshops designed to equip managers with the skills needed to handle sensitive compensation conversations transparently and effectively.

Sysarb complements these efforts with intuitive dashboards designed specifically for managers and employees. These dashboards facilitate transparent communication by providing accessible insights into pay practices, helping foster understanding and trust within the organization. Employees benefit from personalized dashboards that clarify how their compensation aligns with their roles, responsibilities, and organizational benchmarks, significantly enhancing their trust and engagement.

Sampo Ahonala from Perform & Pay highlights:

“Effective communication strategies are essential for successful pay transparency initiatives. Engaging employees and clearly explaining compensation processes builds confidence and strengthens employee relations.”

Ensuring a sustainable compliance and competitive advantage

Combining Perform & Pay’s consultancy services with Sysarb’s technological platform enables Finnish companies to achieve compliance with the EU Pay Transparency Directive while simultaneously gaining a competitive edge. Perform & Pay's hands-on support, practical guidance, and flexible interim resources ensure that structural changes and compliance processes are smoothly integrated into daily operations. They also assist in creating clear action plans to maintain ongoing compliance, effectively embedding pay transparency into the company culture.

Sysarb’s automation capabilities significantly reduce the administrative workload associated with compliance reporting and pay equity analyses. This efficiency allows HR teams to focus strategically on enhancing workplace culture, improving employer branding, and fostering employee trust and retention. Additionally, Sysarb provides real-time compliance monitoring, enabling HR teams to swiftly identify and address issues as they arise, ensuring continuous alignment with evolving regulatory requirements.

Together, these comprehensive services empower Finnish organizations to move beyond mere compliance, actively leveraging pay transparency initiatives to attract and retain top talent, enhance employee engagement, and strengthen their reputation as fair and socially responsible employers.

Aleksi Ojala from Sysarb says:

“A structured and transparent approach to compensation not only fulfills regulatory requirements but also positions the organization as an attractive, fair, and trustworthy employer in today's competitive talent landscape.”

Time to start your pay transparency journey

Now is the time for Finnish companies to take proactive steps in preparing for the EU Pay Transparency Directive. With compliance mandatory from June 7, 2026, urgency in preparation cannot be overstated. By combining Perform & Pay’s consultancy expertise with Sysarb’s advanced technology platform, organizations can confidently address compliance requirements and significantly enhance their workplace fairness and transparency.

We encourage you to start your journey toward compliance and competitive advantage today. Reach out to Perform & Pay or Sysarb for a personalized consultation and discover how your company can effectively navigate and thrive in this new regulatory environment.

Contact Details

Perform & Pay

Sampo Ahonala
Founding Partner, Perform & Pay
sampo.ahonala@performandpay.com

Paul Puustinen
Founding Partner, Perform & Pay
paul.puustinen@performandpay.com

Sysarb

Aleksi Ojala
Client Executive Finland, Sysarb
aleksi.ojala@sysarb.com