Spain Advances Implementation of EU Pay Transparency Directive

BLOG OVERVIEW: Spain’s Ministry of Labour and Social Economy released a draft Royal Decree on August 3, 2026, amending Royal Decree 902/2020 to transpose the EU Pay Transparency Directive. The draft exceeds the Directive’s baseline in several respects: pay gap reporting and mandatory pay audits apply at 50 employees rather than 100, and every employer at that threshold must complete the equivalent of a joint pay assessment regardless of whether a 5% gap has been identified. First reports are due June 7, 2027, for employers with 150 or more employees. Pre-employment pay disclosure and salary history provisions remain unaddressed.

On August 3, 2026, Spain’s Ministry of Labour and Social Economy released a draft Royal Decree amending Royal Decree 902/2020, opting to build on its existing equal pay framework rather than introducing standalone legislation to transpose the European Union Pay Transparency Directive (the Directive). The draft amendments, which were open to public comment through August 24, 2026, go beyond the Directive’s baseline in key respects.

Major Requirements of Spain’s Draft Legislation

Spain’s draft builds on obligations already in place under existing law while introducing new elements to align with the Directive:

• Pay transparency: All employers regardless of size must maintain a pay register covering their entire workforce, and inform staff of the criteria used to determine pay and pay levels.

• Right to pay information: Employees can request their individual pay and average pay by gender for comparable roles, submitted directly, through legal representatives, or through Spain’s Women’s Institute. Employers must respond within two months.

• Pay gap reporting: Employers with 50 or more employees must report gender pay gaps to a newly created Commission for Monitoring Pay Transparency, a notably lower threshold than the Directive’s 100-employee floor.

• Mandatory pay audits: Employers with 50 or more employees must complete a pay audit as part of their equality plan, incorporating three years of pay data and, where unjustified gaps exist, an action plan to correct them within six months.

• Equal value assessment: The draft sets out detailed, objective factors for assessing “work of equal value,” including job functions, qualifications, and working conditions, free from gender stereotypes.

Notably, the draft does not yet address the Directive’s pre-employment transparency requirements, including salary disclosure to candidates and the prohibition on salary history inquiries.

Joint Pay Assessments Without the Directive’s 5% Trigger

Under the Directive, a joint pay assessment is required only when reporting reveals an unjustified pay gap of at least 5%. Spain’s draft takes a broader approach by folding the Directive’s joint assessment requirement into its existing pay audit obligation. As a result, every employer with 50 or more employees must complete the equivalent of a joint pay assessment as a standing requirement, regardless of whether a gap has been identified.

Reporting Timeline Under Spain’s Draft Legislation

First reports are due June 7, 2027 for employers with 150 or more employees and June 7, 2031, for employers with 50 to 149 employees. Annual reporting is required for employers with 250 or more employees, and triennial reporting is required for those with 50 to 249 employees.

Employers with operations in Spain should review existing pay registers and equality plan audits now and watch for further detail on pre-employment transparency requirements as the draft advances toward becoming law.

DCI will continue to monitor developments as member states work to implement the EU Pay Transparency Directive and provide updates as they occur.