EU Transparency Directive

As most are aware, the Swedish and, for that matter, the European labor market is facing a major shift regarding compensation and transparency through the now-adopted Transparency Directive. The directive will introduce a formal reporting requirement on pay gaps starting in 2027 for larger companies, based on payroll data from 2026.

The legislation will impact large cap corporations earlier and in a more comprehensive way. On the other hand, these companies often have the structures and resources in place to meet the new requirements.

We perceive that implementing the directive's requirements will be more challenging for small and medium-sized enterprises (SMEs). Smaller companies are often more agile but may not have the necessary expertise, structures, or methodologies that larger organizations have developed. Although the legislation will affect the reporting requirements for the SME sector later on, there is a risk that market practices and expectations from the talent market will force faster action here as well.

In the attached video, Fredrik Lindberg explains what the legislation entails and its implications. If you have any questions or wish to schedule a meeting with Fredrik, please contact him directly at Fredrik@beeyondx.com.