With the EU Pay Transparency Directive coming into force in June 2026, SMB companies across Europe are facing a fundamental shift in how they approach compensation. One of the most critical (and often overlooked) foundations for compliance and equal pay reporting is a clear, consistent job architecture.
August also marks the peak of the holiday season across Europe, a time when many HR professionals are understandably more focused on vacations than upcoming EU Pay Transparency Directive compliance deadlines. With many teams running at a slower pace, now is a rare window to tackle the low-lift, high-impact groundwork for the EU Pay Transparency Directive. The directive goes live across member states on 7 June 2026, but smart, early action this summer can help prevent a last-minute scramble next spring. You don’t need to choose between taking time off and getting ahead. In fact, August is ideal for both. Don’t let August slip away into a moment in time–yes, like the Taylor Swift song!
If you're reporting both the unadjusted and adjusted pay gap—whether for compliance with the EU Pay Transparency Directive or as part of a pay equity audit—you've probably noticed that most articles online don't answer the real question: how exactly is an adjusted gap calculated?