CMS Pay Gap Compliance
Why now is the right time to make remuneration systems gender-neutral and future-proof — using CMS Pay Gap Compliance to identify and resolve unlawful disparities in pay structures.
EU Pay Transparency Directive – Mandatory for Companies from 2026
National legislation transposing the EU Pay Transparency Directive was actually due to come into force by 7 June 2026. From that date onwards, private and public sector employers – regardless of the company's size – should have been required to create remuneration systems and salary structures in such a way as to ensure that there are no gender pay gaps. The European Directive stipulates that employers with at least 150 employees must already establish some reporting obligations for the year 2026, which they must meet by June 2027. Germany has failed to meet this binding transposition deadline, and no draft legislation has yet been tabled. Nevertheless, public-sector employers must already comply with large parts of the Pay Transparency Directive. Although private employers are not directly affected by the Directive, the European requirements must be taken into account when interpreting national law.
Why act now?
Companies that prepare well in advance will have key advantages:
- Sufficient time to compile and analyse the required data
- Review of existing structures and possibility of timely adjustment
- Strengthening of their own attractiveness as an employer in the competition for the best talent
- Establishment of sustainable and competitive remuneration systems
CMS Pay Gap Compliance - Zeitstrahl
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"The requirements of the Pay Transparency Directive are complex. There is little room for manoeuvre. With our "CMS Pay Gap Compliance" tool, we provide support with its lawful implementation – in a way that is practical, efficient and transparent."
Angela Emmert - Partner, Labor, Employment & Pensions | CMS
How does the tool work?
- Platform for data collection & evaluation of jobs based on the EU Pay Transparency Directive
- Formation of comparison groups according to objective and gender-neutral criteria
- Analysis of pay gaps and determining what measures are required
- Simulation of adjustment scenarios to evaluate possible changes in remuneration structures
- Automated exports & reporting of all standardised remuneration components for information and reporting obligations under the directive
The advantages for you at a glance
- Comprehensive support in determining equal work and work of equal value in accordance with the legal requirements
- Flexible formation of peer groups – depending on the needs of your company
- Direct identification of measures required
- Automated reporting of all standardised remuneration components for information and reporting obligations
- Transparency when hiring new employees with immediate insight into salary and compensation structures
In addition, specialised legal advice and support can be provided by experienced experts if adjustments are necessary.
CMS Pay Gap Compliance
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