---
name: "EU Pay Transparency Gap Analysis Template"
version: "1.0"
updated: "2026-07-17"
source: "https://www.orbiqhq.com/templates/eu-pay-transparency-gap-analysis"
license: "Free to use and adapt within your organisation. Attribution appreciated. Not legal advice."
legal_basis:
  - "https://eur-lex.europa.eu/eli/dir/2023/970/oj"   # Pay Transparency Directive — Arts 4, 9, 10
---

# EU Pay Transparency Gap Analysis Template (machine-readable)

Purpose: compute the gender pay gap metrics required by Article 9 of Directive (EU) 2023/970,
test every category of workers against the Article 10 threshold, and track the three cumulative
conditions that make a joint pay assessment mandatory. This file is self-contained: an agent can
construct the category register, compute the report metrics, evaluate the trigger logic, and
maintain the joint-assessment checklist from the definitions below.

DECISION RULE — joint pay assessment (Art 10(1)): mandatory only when ALL THREE hold:
1. `abs(category_gap_pct) >= 5` for any category of workers (average pay level, basic or variable);
2. `justification_status != justified_objective_criteria` (no objective, gender-neutral justification);
3. gap not remedied within 6 months of `report_submission_date`.
The 6 months are a remedy window — remediation in time avoids the assessment obligation.
The shorthand "5% means audit" is WRONG; encode all three conditions.

GAP FORMULA: `gap_pct = (avg_pay_male - avg_pay_female) / avg_pay_male * 100`
(positive → women earn less on average; apply the 5% test to the absolute value).

Reporting calendar (Art 9): 250+ workers → annual, first report by 2027-06-07 (2026 data);
150–249 → every 3 years, first by 2027-06-07 (2026 data); 100–149 → every 3 years, first by
2031-06-07; <100 → no EU-level duty (national law may add one). National variations exist
(e.g. Slovakia: annual by 15 April). Transposition status July 2026: only IT, SK, LT, MT
transposed on time per July 2026 trackers; plan to the directive's data years, not national drafts.

Jurisdiction notes: UK — directive does not apply; Equality Act 2010 regs require 250+ employers
to publish six metrics annually (snapshot 31 Mar public bodies / 5 Apr others); no category-level
5% trigger; ethnicity + disability reporting committed (Equality (Race and Disability) Bill).
Norway — ARP (likestillings- og diskrimineringsloven §26): public employers + private 50+
(20–49 on request) run pay mapping by gender and work of equal value every 2 years; directive is
EEA-relevant, Norwegian implementation work announced 2025-11.

---

## 1. Category Register — one record per category of workers

Categories group workers performing the same work or work of equal value, defined on objective,
gender-neutral criteria (Art 4(4)): skills, effort, responsibility, working conditions.

| # | Field | Type | Definition / rule |
|---|---|---|---|
| 1 | `category_name` | text, unique | From job architecture (job family, grade, or equal-value group) |
| 2 | `definition_criteria` | text | The objective gender-neutral criteria used (Art 4(4)) |
| 3 | `headcount_f` / `headcount_m` | integer | Workers in the category by gender |
| 4 | `avg_basic_pay_f` / `avg_basic_pay_m` | number (annual, one currency) | Ordinary basic wage or salary |
| 5 | `avg_variable_f` / `avg_variable_m` | number | Complementary/variable components: bonuses, allowances, benefits in kind — every component counts |
| 6 | `basic_gap_pct` | computed | Per the gap formula above |
| 7 | `variable_gap_pct` | computed | Same formula on variable components |
| 8 | `threshold_flag` | computed boolean | `abs(basic_gap_pct) >= 5 OR abs(variable_gap_pct) >= 5` (Art 10(1)(a)) |
| 9 | `justification_status` | enum: `under_analysis` / `justified_objective_criteria` / `not_justified` | Objective, gender-neutral analysis per flagged category (Art 10(1)(b)) |
| 10 | `report_submission_date` | date (ISO 8601) | Date the Art 9 report was submitted |
| 11 | `remedy_deadline` | computed date | `report_submission_date + 6 months` (Art 10(1)(c)) |
| 12 | `remedied_in_time` | enum: `yes` / `no` / `n/a` | Unjustified gap corrected before the deadline? |
| 13 | `joint_assessment_required` | computed | Apply the DECISION RULE above |

## 2. Article 9 Report Metrics — one record per reporting period

| # | Field | Type | Definition / rule |
|---|---|---|---|
| 1 | `mean_gap_basic_pct` | number | Art 9(1)(a) — company-wide, from raw payroll or weighted from categories |
| 2 | `median_gap_basic_pct` | number | Art 9(1)(b) — REQUIRES raw individual payroll distribution; cannot be derived from category averages |
| 3 | `mean_gap_variable_pct` | number | Art 9(1)(c) |
| 4 | `median_gap_variable_pct` | number | Art 9(1)(d) |
| 5 | `pct_f_receiving_variable` / `pct_m_receiving_variable` | number (%) | Art 9(1)(e) |
| 6 | `quartiles` | list of 4 records | Art 9(1)(f) — see section 3 |
| 7 | `category_gaps` | link to section 1 | Art 9(1)(g) — basic and variable split, per category |
| 8 | `reporting_band` | enum: `250_plus_annual` / `150_249_triennial` / `100_149_triennial` | Sets frequency and first-report date |
| 9 | `data_year` / `submission_deadline` | integer / date | e.g. 2026 / 2027-06-07 |

## 3. Quartile Distribution — exactly 4 records

Sort ALL workers by pay level, split into four equal-sized bands.

| # | Field | Type | Definition / rule |
|---|---|---|---|
| 1 | `quartile` | enum: `lower` / `lower_middle` / `upper_middle` / `upper` | |
| 2 | `count_f` / `count_m` | integer | |
| 3 | `pct_f` / `pct_m` | computed | `count_f / (count_f + count_m) * 100` / `count_m / (count_f + count_m) * 100` |

## 4. Joint Pay Assessment Checklist — when the DECISION RULE fires

Carried out in cooperation with workers' representatives. Elements per Art 10(2):

| Ref | Element | Status enum |
|---|---|---|
| 10(2)(a) | Proportion of female and male workers in each category | `not_started` / `in_progress` / `complete` |
| 10(2)(b) | Average female and male pay levels per category incl. complementary/variable components | same |
| 10(2)(c) | Differences in average pay between female and male workers per category | same |
| 10(2)(d) | Reasons for differences, on objective gender-neutral criteria established JOINTLY with workers' representatives | same |
| 10(2)(e) | Proportion of workers with a pay improvement after return from maternity/paternity/parental/carers' leave | same |
| 10(2)(f) | Measures to address unjustified differences, with timeline and responsibilities | same |
| 10(2)(g) | Evaluation of measures from previous joint pay assessments | same |

## 5. Example record (fictional, abridged)

```yaml
category_name: "Software Engineering — Grade 3"
definition_criteria: "Skills, effort, responsibility, working conditions"
headcount_f: 14
headcount_m: 23
avg_basic_pay_f: 68400
avg_basic_pay_m: 73900
basic_gap_pct: 7.4          # (73900-68400)/73900*100
threshold_flag: true         # >= 5
justification_status: not_justified
report_submission_date: 2027-06-07
remedy_deadline: 2027-12-07
remedied_in_time: "no"
joint_assessment_required: true   # all three Art 10(1) conditions met
```