04:05 Issue 5

GLOBAL PAYROLL MAGAZINE

85

the EU:

than their male colleagues. It is of course possible to argue with the merits of the various GPG calculation methodologies but this just distracts from the real issue of ongoing inequality in the workplace. Governments have previously left this to employers to resolve but the lack of meaningful progress means they are introducing regulation to speed up the journey to equality. We have seen transparency regulations coming into effect across the US on a State by State basis and we are seeing similar expansion across Canada. There is an increasing emphasis on the subject in Australia and Japan with new GPG reporting requirements in both of those countries. It is also becoming

a more common boardroom topic in the Middle East as firms want to work and be successful in Western economies. However, the incoming EU requirements are the most comprehensive and complete set of requirements and are much more significant and impactful than any others. The EU Pay Transparency Directive Requirements The first point to note is the regulations come into effect in June 2026 and companies need to be acting now to prepare because there aren’t any short cuts to a lot of the requirements and all employers with people in the EU will need to prepare!

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