EU pay transparency rules driving ‘cultural pay shift’ in UK

The EU Pay Transparency Directive is having an impact on pay culture in the UK, as three-quarters (76%) of British companies plan to share individuals’ pay ranges with employees, according to research.

WTW’s 2025 Pay Transparency Survey also found that 70% of employers plan to share pay range information with external candidates, regardless of legal requirements.

This shift behind increased pay communication is led primarily by growing regulatory requirements (59%), employee expectations (46%), and company values and culture (41%).

The survey, conducted in June, garnered opinions from 1,915 employers globally, including 225 respondents from the UK.

It found that organisations in the UK remain less likely to communicate pay information, compared with other countries around the world.

This is due to the belief that sharing pay ranges will lead to significantly more questions from employees and managers (73%), and increased pay negotiations (55%).

Concerns regarding managers’ ability to explain compensation programmes and possible employee reactions have been cited as common factors for holding back pay communication. However, companies in the UK are far more likely to educate senior leaders, managers and board members on pay than in other countries.

Eva Jesmiatka, Europe lead on pay and career equity at WTW, said: “We’re starting to see a cultural shift take place around pay in the UK, despite the fact that UK companies are not directly impacted by the EU Pay Transparency Directive.

“Companies recognise that increased pay transparency will become a new reality which can support their employer brand and build competitive advantage in the talent market. In order to prepare for becoming more transparent, there are some important fundamentals for companies to get right.

“These include robust job and rewards structures, and objective HR policies and processes to ensure the delivery of equal pay. In addition, it will be important for companies to look at their future ambition for pay transparency and define how transparent they aspire to be.”

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