Pay transparency
Salary transparency in Paris 16 (75116)
Pay transparency
A major turning point for professional equality
In France, money in the workplace is a carefully avoided subject, a taboo where the opacity of pay scales often serves as a bulwark against unequal practices. Yet wage discrimination between men and women remains a reality, with persistent pay gaps.
The European Salary Transparency Directive of 2023, which will be transposed in France in late 2025 / early 2026, imposes a new era of salary responsibility. It obliges companies to disclose their remuneration mechanisms and integrate equal pay into their governance.
More stringent obligations to reduce wage disparities
This directive introduces several key measures to eliminate the pay gap between women and men:
A right to information for employees :
- On hiring, candidates can ask for the starting salary or salary range for the position in question.
- During the course of their employment, employees can demand to know the objective, gender-neutral criteria used to set and develop pay.
- Right to salary transparency: employees will have access to average salaries broken down by gender and by job category of equal value.
The employer's duty to communicate:
- The employer must inform employees of these rights and the pay parity elements within 2 months of their request.
An obligation to carry out a joint assessment
of remuneration:
- Companies will have to carry out a pay gap analysis with employee representatives to justify or correct any inequalities detected.
The impact on companies: anticipate to avoid suffering
With this new transparency requirement, proactive compensation management becomes essential. Employees will be able todemand explanations of pay differentials and pay disparities within their company.
Risks for companies that delay action:
- Increased employee complaints about pay inequalities and bonuses.
- Financial penalties for companies that fail to meet pay transparency obligations.
- Loss of attractiveness to talent, particularly women, who prefer companies committed toequal pay.
Preparing for pay transparency: a methodical approach
To avoid undergoing this transformation, companies must now :
Mapping pay practices using data collection and analysis tools
identifying wage gaps and discrimination
possible.
Establish objective compensation criteria
based onseniority, skills and the equal value of jobs.
Correcting wage disparities
rather than justifying them, by engaging in a transparent salary catch-up.
Training managers
to a culture of equality to avoid gender bias in the awarding of raises and high salaries.
Integrate pay transparency into governance
in collaboration with social partners and trade unions.
Transparency, a strategic lever for employer branding
Adopting a policy of compensation transparency is not just about complying with new regulations, it's also a strategic asset.
Large companies committed toequal pay attract more talent and boost their competitiveness. Greater pay equity improves the social climate and reduces turnover. By integrating pay transparency into HR policy,pay discrimination can be avoided, and pay discrepancies eliminated before they become a legal risk.
The European directive requires a profound transformation of compensation management. Don't wait: prepare now for your transition to greater transparency and equal pay.
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