After lengthy preparations and a close dialogue with the social partners, the Danish government has now submitted its bill to implement the EU Pay Transparency Directive (Directive (EU) 2023/970) for public consultation, with a deadline of 27 March 2026.

The bill implements the Directive primarily through an amendment to the existing Equal Pay Act. For companies covered by collective agreements, it is worth noting that the new rules do not change collective pay formation – the Equal Pay Act can still be derogated from by collective agreement.

The rules are expected to enter into force on 1 January 2027 – six months after the EU's own implementation deadline of 7 June 2026.

We have summarised the most important key measures here:

• Requirement for gender pay reports. The first gender pay report must be submitted by 1 September 2028 for companies with at least 150 employees – this gives companies 15 months more than the Directive's own deadline.
• Pay reports are to be submitted to the new Labour Market Institute for Equal Pay. The plan is for publication to take place at company level.
• Requirement for a joint pay assessment “upon request” where there are unjustified pay differences between genders of at least 5% in any employee category.
• Start salary or salary range must be disclosed prior to the job interview. It will therefore not be a requirement for this to appear in a job advertisement.
• Prohibition on questions about salary history in connection with recruitment.
• Employees will have the right to access their own salary data and average salaries broken down by gender for the category of employees who perform the same work or work of equal value.
• If disclosure of salary information could reveal the salary of individuals, the information may only be disclosed to the employee representative or the new Labour Market Institute for Equal Pay.
• Failure to comply with the new transparency requirements may in itself trigger a shift in the burden of proof in an equal pay case. In addition, there are new compensation options, increased fines and amended limitation rules. 

Please let us know should you require any further background.

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At Deloitte, we understand that navigating the demands and complexities of pay equity and transparency can be daunting. Our proposition is designed to help you overcome this challenge and achieve your goals. Our aim is to enable you to pay employees equitably and help you demonstrate that you are doing so.

With our deep multi-disciplinary expertise in reward, employment law, technology & analytics, and behaviour change, we are well-placed to be your trusted partner on this journey. Get in touch to discuss your challenges and needs.

Kathryn Dooks, Partner, Deloitte Legal, 020 7303 2894

Deepinder Lamba, Partner, Deloitte Global Employer Services, 020 7007 2689

* The information provided is for general informational purposes only and may not be complete or up-to-date. Do not rely on this information without seeking professional advice. Deloitte LLP accepts no liability for any loss occasioned by any person acting or refraining from action as a result of this content.