Many companies are currently grappling with the EU Pay Transparency Directive (2023/970/EU), focusing primarily on base salaries. But this is precisely where a critical misconception lies.
The directive goes much further: variable compensation systems—bonuses, commissions, and incentives—are also coming under scrutiny.
And it is precisely here that the greatest risks lie in many companies.
Established models, individual special provisions, and opaque calculation methods are making it increasingly difficult to demonstrate fairness and comparability.
With mandatory implementation by June 7, 2026, the pressure to act is increasing significantly:
In the future, companies must actively demonstrate that their compensation systems are transparent, fair, and non-discriminatory.
Typical challenges:
- Non-transparent bonus and incentive structures
- Lack of comparability between roles and regions
- Non-auditable calculation logic
- Too many individual special provisions
At the same time, a great opportunity presents itself:
Those who act now can not only ensure compliance but also make their compensation models more efficient, manageable, and future-proof.
Are you ready?
In our webinar we’ll show you:
✓ What the directive means in practice for variable compensation
✓ Where typical risks—and quick wins—lie
✓ How to achieve transparency and governance with solutions like SAP SPM
