BCC: EU Pay Transparency Directive: A New Era for Equality?

On 26^th March, the British Chamber of Commerce for Luxembourg (BCC) welcomed members and guests to an engaging breakfast panel discussion centred around one of the most ambitious pieces of European employment legislation in recent years: the EU Pay Transparency Directive.

The event, hosted by Baker McKenzie Luxembourg and organised by the BCC Sustainability Working Group, brought together experts from legal, corporate, and recruitment fields to explore how transparency can become a catalyst for fairness, equity, and long-term business resilience. Moderated by Nadia Eatough, member of the BCC Sustainability Working Group, the session encouraged an open, thoughtful exchange of perspectives on the practical implications of the directive ahead of its June 2026 implementation deadline.

From Compliance to Culture Change

Following opening remarks by Giulia Iannucci, the Chair of the BCC Sustainability Working Group, Nadia set the scene by asking the audience three simple yet revealing questions: ‘Who here is an employee? An employer? And who believes the gender pay gap is still an issue that needs to be addressed at work?’

This quick pulse check served to highlight the relevance of the topic and the shared interest in fostering fairness in the workplace. As Nadia noted, “The Pay Transparency Directive is not just a compliance exercise – it’s a fundamental shift that aims to close unjustified pay gaps, strengthen workforce equity, and foster a culture of fairness.” Yet, transparency also introduces new organisational demands, such as legal clarity, recruitment strategy adaptation, and the overhaul of pay structures.

Three Angles, One Objective

The panel featured three speakers who examined the Directive from complementary perspectives:

• Vinciane Istace, Advisory Partner, People Experience and Change Leader at PwC Luxembourg, offered the view from an implementer, grounding the directive in its broader social philosophy while providing practical insights into preparing organisations for compliance.
• Sabrina Martin, Employment Law Partner at Baker McKenzie, shared the legal perspective, underlining employers’ obligations and the need to proactively manage litigation risks through fair and transparent practices.
• Darren Robinson, Managing Partner at Anderson Wise, brought in the recruiter’s angle, addressing how transparency will impact hiring, salary negotiations, and employer branding in a competitive talent market.

Each speaker gave a short presentation before engaging in a lively panel discussion, which focused on two key areas: “Legal & Business Implications” and “Challenges & Adaptation Strategies”.

Insights from the Panel

Several recurring themes emerged from the discussion:

• The importance of clear job descriptions and job evaluation criteria as essential building blocks for implementation.
• There is a clear need for accurate and consistent data collection on pay, job roles, and seniority in order to enable fair comparisons and justify any salary differences. Vinciane made a memorable comparison to maintaining a ‘well-organised book library’, highlighting in practical terms how essential structured data is to achieving pay transparency.
• The challenge of balancing merit-based progression with equitable outcomes, especially in the absence of robust benchmarking data – a concern particularly relevant in Luxembourg.
• The role of trade unions, regulators, and employees in ensuring that transparency leads to real progress, not just administrative compliance.

A key message from the panellists was the importance of embedding pay transparency into broader corporate sustainability and ESG strategies. As Sabrina Martin emphasised, “Pay equity can be a cornerstone of a company’s ESG agenda – if approached as a value-driven commitment, rather than a legal checkbox.”

Conclusion

As the moderator concluded, “Reaching gender equality has never been easy. But making it a reality is our duty – to ourselves and to future generations.”

The event wrapped up with a clear takeaway: the EU Pay Transparency Directive presents not only a regulatory obligation but a genuine opportunity to reshape workplace culture for the better.

The BCC thanks our panellists – Sabrina Martin, Darren Robinson and Vinciane Istace – for their expertise and insights, as well as Baker McKenzie for hosting this important discussion.

We look forward to continuing the conversation on sustainability, inclusion, and responsible business in Luxembourg and beyond.