GLOSSARY
Pay transparency glossary
Short, plain-language definitions of the terms used throughout the EU Pay Transparency Directive and this site. For how the rules fit together, read the full guide.
Pay transparency
The principle that pay and the criteria used to set it should be open and accessible, so that unjustified differences can be identified and challenged.
Gender pay gap
The difference in average pay between female and male workers, usually expressed as a percentage. It can be measured across a whole employer or within categories of workers.
Equal pay for equal work
The rule that workers must receive the same pay for the same work, or for work of equal value, without discrimination based on sex.
Work of equal value
Different jobs that are comparable when assessed against objective criteria — skills, effort, responsibility and working conditions — and that therefore attract equal pay.
Pay level
A worker's gross annual and gross hourly pay, including all complementary or variable components such as bonuses, allowances and benefits.
Pay progression
The way a worker's pay increases over time, for example through experience, performance or seniority. The criteria for progression must be objective and gender-neutral.
Categories of workers
Groups of workers performing the same work or work of equal value, defined by the employer using objective, gender-neutral criteria. Pay gaps are reported and assessed within these categories.
Joint pay assessment
A review carried out by an employer together with workers' representatives when reporting reveals an unjustified average pay gap of at least 5% in a category that has not been corrected within six months.
Pay secrecy
Contractual or workplace rules that stop workers disclosing or discussing their pay. The Directive prohibits clauses that prevent workers from revealing their pay.
Reporting bands
The employer-size thresholds that determine whether, when and how often gender pay gap reporting is required — for example 250 or more, 150 to 249, and 100 to 149 workers.
Transposition
The process by which EU Member States turn a directive into national law. The Pay Transparency Directive must be transposed by 7 June 2026.
Gender-neutral criteria
Standards for setting pay, grading jobs and awarding progression that do not favour one sex over another and are based on objective, job-related factors.
See also: Guide · Equal value · FAQ
Put the terms into practice
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