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Pay Equity Spain

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Basic Summary

Spain requires employers to ensure equal pay for equal work or work of equal value and to maintain a company-wide pay register showing average and median remuneration by sex across each professional group/category/level and for each remuneration component. Employers with 50 or more employees must implement a negotiated equality plan that includes a pay audit, job evaluation methodology, diagnosis of pay gaps, and corrective measures. Labor authorities can inspect, request documentation, and sanction non-compliance.

Spain’s regime sits alongside EU rules. The EU Pay Transparency Directive 2023/970 strengthens rights to pre-employment pay range transparency, bans pay history questions, enhances employee rights to pay information, and mandates gender pay gap reporting for larger employers. Spain will transpose these requirements by June 2026. Total Rewards and Payroll teams should already align systems to capture the required data, run robust pay-equity analytics, and produce the legally compliant register and audit outputs.

Summary

All employers in Spain must keep a written registro retributivo (pay register) covering the entire workforce (including management and senior executives) and listing arithmetic mean and median remuneration for women and men separately, broken down by professional group/category/level or other applicable classification, and by each remuneration component (base salary, each supplement, bonus, benefits in kind, overtime, etc.) and in total. If, within a category or group, average pay for one sex differs by 25% or more from the other without an objective, gender-neutral reason, the employer must include a justification. Employees’ legal representatives have full access; individual employees in non-represented workplaces have access to aggregated percentage differences.

Companies with 50+ employees must negotiate, register, and implement a plan de igualdad (equality plan) that includes a auditoría retributiva (pay audit). The audit must use a gender-neutral job evaluation method to compare work of equal value, compute unadjusted and adjusted gaps, assess pay-setting systems, and set corrective actions with timelines and monitoring. Labor Inspectorate enforcement includes documentary requests and on-site checks. Breaches may trigger fines and loss of public contracting advantages. With the EU Pay Transparency Directive due by June 2026, Spain will add obligations on pre-hire pay range disclosure, pay-history bans, and periodic gender pay gap reporting for 100+ employee employers, along with joint pay assessments if unexplained gaps persist at ≥5%.

  • Primary legislation and regulations
    • Workers’ Statute (Estatuto de los Trabajadores) – Royal Legislative Decree 2/2015, of 23 October, Art. 28: equal pay for equal work or work of equal value; Art. 64: information rights of employee representatives.
    • Organic Law 3/2007, of 22 March, for the Effective Equality of Women and Men (LO 3/2007): general equality and non-discrimination framework; equality plans; burden of proof shift.
    • Royal Decree-law 6/2019, of 1 March: strengthens equality measures, mandates equality plans for ≥50 employees, enhances pay transparency.
    • Royal Decree 902/2020, of 13 October, on Equal Pay between Women and Men: establishes the pay register, pay audit content, equal value concept, gender-neutral job evaluation requirements, and the 25% justification trigger.
    • Royal Decree 901/2020, of 13 October, regulating equality plans and their registration: negotiation, content, effectiveness, registration in REGCON.
    • Law on Infractions and Sanctions in the Social Order (LISOS) – Royal Legislative Decree 5/2000: sanctions for discrimination and breaches of equality and recordkeeping duties; potential fines for serious and very serious offences and ancillary penalties.
    • Law 15/2022, of 12 July, on comprehensive equal treatment and non-discrimination: expands protected grounds (including gender identity) and remedies.
    • General Data Protection Regulation (EU) 2016/679 (GDPR) and Organic Law 3/2018 (LOPDGDD): legal bases, minimization, workers’ data processing, access rights, and security obligations for equality and pay analyses.
  • EU framework
    • Directive 2006/54/EC (recast) on equal opportunities and equal treatment, including burden of proof shift.
    • Directive (EU) 2023/970, of 10 May 2023, on strengthening the application of the principle of equal pay for equal work or work of equal value through pay transparency and enforcement mechanisms (EU Pay Transparency Directive): pre-hire pay range disclosure; ban on pay-history questions; rights to information; periodic employer gender pay gap reporting for 100+ employees; joint pay assessment if ≥5% unexplained gap persists; effective remedies and sanctions. Transposition deadline: 7 June 2026.
    • Directive (EU) 2019/1152 on transparent and predictable working conditions: minimum information on remuneration components.
  • Regulatory bodies
    • Ministry of Labour and Social Economy (MITES) and Ministry of Equality: policy, guidance, and official job evaluation and pay register tools.
    • Labour and Social Security Inspectorate (Inspección de Trabajo y Seguridad Social, ITSS): enforcement and sanctions.
    • Labour Courts (Juzgados de lo Social): adjudication of claims, remedies including back pay and damages.
    • Spanish Data Protection Authority (AEPD): GDPR enforcement.
  • Sanctions and penalties (indicative ranges; exact amounts depend on classification and aggravating factors)
    • Serious infringements (e.g., failure to keep the pay register; obstruction of information rights): fines approximately €751–€7,500 per LISOS.
    • Very serious infringements (e.g., pay discrimination; failure to negotiate/implement an equality plan when required): fines up to approximately €225,018; ancillary measures may include loss of public subsidies, exclusion from public tenders for up to two years, and reputational notices.
    • Judicial remedies may include full compensation of material and moral damages, back pay, and nullity of discriminatory measures.
  • Recent updates and pending changes
    • Continued enforcement emphasis on the pay register and equality plan quality under RD 902/2020 and RD 901/2020.
    • Transposition of Directive (EU) 2023/970 expected by June 2026: new obligations on pre-hire pay range disclosure, pay-history ban, annual/triannual gender pay gap reporting for larger employers, and joint pay assessment for ≥5% unexplained gaps.

Detailed Data Requirements

Field/Data Description
Legal Entity Registered employing entity in Spain; required to distinguish reporting scope, especially for multi-entity groups and REGCON registration.
Workforce Inclusion Include all employees, including management/senior executives, permanent, temporary, part-time, fixed-term, apprentices/trainees, and those on paid leave within the reference period. Agency workers typically reported by their legal employer; consider separate internal analysis for equal value comparisons.
Unique Employee ID Pseudonymized identifier for analytics; avoid national ID exposure for GDPR minimization.
Sex (Male/Female) and Gender Identity (if collected) RD 902/2020 requires register by sex (women/men). If gender-diverse data are collected for inclusion policies, treat as special category and aggregate to protect privacy; do not disclose small counts.
Date of Birth / Age For analytics only; do not use age to justify pay unless objectively tied to seniority or job-related requirements; ensure neutrality.
Hire Date and Company Seniority Seniority-based supplements (trienios/quinquenios) are common; capture in months and years; identify breaks in service where relevant under CBA rules.
Job Title HR title and local payroll denomination.
Job Code Internal code mapping to evaluation system.
Classification System Applicable collective bargaining classification: grupo profesional, categoría profesional, nivel, or equivalent; mandatory for pay register breakdown.
Job Evaluation Points/Band Points and band under a gender-neutral system; use the official job evaluation tool or an equivalent validated methodology; store version/date of evaluation.
Work Location City/region; note cost-of-living allowances or geographic supplements; identify remote/hybrid arrangements where allowances apply.
Full-Time/Part-Time Status Contractual status; contracted weekly hours; standard full-time weekly hours per CBA (often 40h/week) for FTE calculations.
Contract Type Indefinite, fixed-term, training/apprenticeship; specify probation status if it affects variable pay eligibility.
Reference Period Typically 12 consecutive months (e.g., calendar year); align across all components; document if using a fiscal year.
Base Salary Gross base salary for the reference period; document 12- vs 14-payment structure; state whether extra payments are prorated (prorrata) or paid as two extra pagas extraordinarias (typically June and December).
Salary Supplements (complementos salariales) Each supplement separately: seniority (antigüedad/trienios/quinquenios), job position (complemento de puesto), quality/quantity, language, availability, danger/toxicity, shift/night (nocturnidad/turnicidad), on-call/standby (guardias), expatriation, geographic, etc.
Variable Cash Compensation Commissions, sales incentives, STI/bonus, MBO payouts; record target, prorated target, and actual payout; include accrual vs payment indicators and performance period coverage.
Long-Term Incentives (Equity/Cash) RSU/PSU/stock options/phantom share plans/LTIP cash. Capture: grant date, vest dates, fair value at grant, fair value at vest, units vested/exercised during reference period, and realized gains (taxable income). State valuation basis used for analytics (realized vs fair value at vest/grant) and apply consistently.
Overtime Pay (horas extraordinarias) Hours and pay for overtime; specify rates and whether mandatory or voluntary; separate from standard supplements.
Premium Pay Sunday/holiday work, night shifts, split shifts, irregular hours; capture rates and hours.
Benefits in Kind Company car (imputed value), meal vouchers, transport cards, childcare vouchers, housing, mobile/IT benefit where considered remuneration; include taxable and non-taxable values with methodology.
Non-Salary Payments (percepciones extrasalariales) Per diems (dietas), travel reimbursements, expense reimbursements, indemnities; include in the pay register as a separate category if paid; typically excluded from equal pay analysis if pure reimbursement; document policy basis.
Social Security and Withholdings Employer contributions excluded from remuneration; employee contributions and taxes not part of gross remuneration; track only for net/gross reconciliation, not gap analysis.
Leaves and Absences Type and dates (maternity/paternity/parental leave, temporary incapacity, unpaid leave); pay continuity rules under CBA; identify periods with zero or reduced pay for normalization to hourly/FTE rates.
Worktime and Hours Contracted hours, hours worked, overtime hours, unpaid leave hours; derive hourly rates for comparability.
Performance Ratings Year-end ratings and calibration outcomes; document scale and criteria; use cautiously and ensure auditability to justify differentials.
Education and Qualifications Highest degree, licenses/certifications relevant to job; ensure tie to job requirements for justification; avoid overreliance to prevent indirect discrimination.
Experience Job-related prior experience (years) and internal experience in role/level; record methodology and sources; avoid reliance on prior pay history for setting pay.
Geographic Adjustments Cost-of-living/location-based supplements; specify policy and amounts.
Collective Bargaining Agreement (CBA) Coverage Name and code of applicable CBA; wage tables and supplement rules; renewal dates.
Comparator Group Tag Identifier for equal value groupings (e.g., job evaluation family/level or professional group) used in analyses; allows consistent slicing across the register and audits.
Exclusions (and rationale) Severance/termination payments; extraordinary one-off awards unconnected to performance; relocation reimbursements; damages/indemnities; employer social security contributions; non-recurring sign-on/retention payments should be treated consistently and footnoted if included due to materiality.
Data Provenance and Timestamp Source system, extraction date, and calculation version; mandatory for audit trail and inspectorate requests.

Step-by-Step Calculation Methodology

  1. Data Standardization: Harmonize time periods, pay definitions, and currency for Spain-specific analysis.
    1. Standardize the reference period to a 12-month window aligned to calendar year where possible. Include all remuneration components devengados (accrued) and/or percibidos (paid) within the period; choose one basis and apply consistently, disclosing the basis in the methodology note.
    2. Convert all pay components to gross euros. For 14-payment structures, compute Annualized Base Salary = Monthly Base × Number of annual payments (12 or 14) and ensure supplements/variable are annualized.
    3. Break down pay into components: base, each supplement, variable cash, overtime/premia, benefits in kind, non-salary payments. Maintain a data dictionary with precise definitions mapped to payroll codes.
    4. Normalize variable pay across performance periods (e.g., attribute an annual bonus paid in March to the performance year); disclose any proration for new hires or leaves.
  2. FTE Adjustments: Eliminate differences driven by working time to compare like-for-like.
    1. Define standard full-time hours under the applicable CBA (commonly 40 hours/week; confirm local rules). Compute FTE = Contracted weekly hours ÷ Standard full-time weekly hours. For variable schedules, use annual contracted hours.
    2. Compute hourly rates for each component: Hourly Base = Annualized Base ÷ Annual standard hours; Hourly Total Remuneration = Annual Total Remuneration ÷ Actual hours paid (excluding unpaid leave). Use hourly comparisons for unadjusted gender gap statistics to avoid part-time bias.
    3. For employees on leave with partial pay, adjust to hourly basis; exclude periods of zero pay from hourly denominators or pro-rate to contract hours to avoid artificial dilution of averages. Document treatment of maternity/paternity/parental leave consistent with non-discrimination rules.
  3. Total Compensation Calculations: Build comparable, comprehensive measures aligned to RD 902/2020 and robust analytics.
    1. Compute Total Remuneration (Register): TR_register = Base + Σ(each salary supplement) + Variable cash (commission/bonus) + Overtime + Premiums + Benefits in kind + Non-salary payments. Present both total and each component’s mean and median by sex within each classification group.
    2. Compute Analytical Total Compensation (Pay Equity): TR_analytic = Base + Σ(salary supplements) + Variable cash + Overtime + Premiums + Benefits in kind. Exclude pure reimbursements and indemnities that are not remuneration; footnote exclusions. Maintain both annual and hourly TR_analytic.
    3. For equity/LTI, select valuation basis: (a) Realized approach: include taxable benefit at vest/exercise in the year; (b) Accrual approach: amortize grant fair value straight-line over vesting period and include the accrued portion. Apply one approach consistently and disclose.
    4. Derive unadjusted gap formulas (women vs men): Unadjusted Gap (%) = (Avg_men − Avg_women) ÷ Avg_men × 100; Median Gap (%) uses medians. Calculate for TR_register (by law) and for TR_analytic (for deeper diagnostics), at company level and per comparator group.
  4. Comparison Group Formation: Ensure equal value comparability using gender-neutral criteria.
    1. Primary grouping for the pay register: professional group/category/level or other classification defined by CBA/company system (RD 902/2020). Ensure mapping consistency across entities.
    2. For pay equity analytics and audits: build equal value groups using a validated, gender-neutral job evaluation system that weighs: required knowledge/skills, effort, responsibility, and working conditions (including physical, psychosocial, and environmental). Use official Spanish job evaluation tool or an equivalent; keep documentation of factor weights and scores.
    3. Where groups are too broad, analyze at job family × level bands. Where groups are too small (e.g., n<3 per sex), aggregate to the next higher grouping to protect privacy and maintain statistical reliability.
    4. Validate grouping neutrality annually, checking for role creep, reclassification, or biased factor scoring; involve employee representatives during equality plan negotiations.
  5. Statistical Testing: Identify significant and material differences and separate structure from noise.
    1. Compute unadjusted gaps (mean and median) and test differences in means by comparator group using two-sample t-tests where sample sizes are adequate and distributions approximately normal; otherwise use non-parametric tests (e.g., Mann–Whitney).
    2. Build adjusted models to explain pay variation with objective, gender-neutral predictors: OLS regression (log of hourly TR_analytic) with controls for job evaluation points/band, professional group, location, seniority, education/qualifications, experience, performance rating, contract type, and hours. Include sex as a coefficient of interest. Where hierarchical structures exist, use mixed-effects models with random intercepts for team/manager.
    3. Set significance at 5% (p<0.05) and report 95% confidence intervals for sex coefficients and adjusted gaps. Flag groups with adjusted gaps exceeding a materiality threshold (e.g., ≥2% and statistically significant) for targeted remediation.
    4. For legal compliance with RD 902/2020, automatically flag any category with a ≥25% average difference in the pay register and include employer’s objective justification in the register. Anticipate the EU Directive’s ≥5% persistent, unjustified gap threshold triggering joint pay assessment.
  6. Gap Analysis: Turn findings into decision-ready actions and legal documentation.
    1. Produce a gap matrix: rows = comparator groups; columns = unadjusted mean gap, unadjusted median gap, adjusted gap (regression), headcounts (by sex), statistical significance, and potential drivers (supplement mix, performance distribution, seniority).
    2. Attribute gaps to specific components by decomposing TR_analytic (e.g., Oaxaca–Blinder decomposition or component-level regressions). Identify whether base pay or particular supplements (e.g., shift premiums, seniority) drive disparities.
    3. For each flagged gap, compile objective justifications and evidence or design corrective measures. Where justifications are absent or weak, plan pay adjustments, structural changes (e.g., leveling, supplement rules), or process changes (e.g., performance calibration).
    4. Document all steps, results, and decisions in the pay audit report required under RD 901/2020/902/2020; share with employee representatives during equality plan negotiation and register the plan with REGCON.

Justifiable Differences

  • Legally acceptable, objective, and gender-neutral reasons for pay differences
    • Professional classification/job value: Differences based on professional group/category/level or validated job evaluation points where roles are of unequal value under a gender-neutral methodology.
    • Seniority/length of service: CBA-defined trienios/quinquenios or similar supplements, calculated uniformly and documented from hire date/service records.
    • Performance and results-based pay: Documented performance ratings under a calibrated and audited process tied to objective criteria; sales commissions tied to measurable sales outcomes; KPIs pre-defined and applied consistently.
    • Qualifications and skills: Degrees, licenses, certifications, or scarce skills demonstrably required and used in the job; credential differentials aligned to policy and applied consistently.
    • Experience relevant to the job: Years of directly relevant experience; equivalency rules documented; avoid reliance on prior pay history as a proxy.
    • Working conditions: Shift, night, weekend, holiday, danger/toxicity, on-call, and geographic hardship supplements tied to actual working conditions defined in CBA/policy and recorded in timekeeping/payroll.
    • Geography within Spain: Location adjustments based on documented cost-of-living/market data and approved policy; applied consistently to all incumbents in the location.
    • Market adjustments with evidence: Written compensation policy identifying sources (credible surveys), percentile targets, and governance approvals; ensure these do not perpetuate historical bias.
    • Part-time pro-rata: Proportional pay for reduced hours, while keeping hourly rates equal for equal value work; ensure benefits eligibility rules comply with non-discrimination.
  • Not justifiable
    • Sex or gender, pregnancy, maternity/paternity/parental leave or return status, caregiving responsibilities, marital/family status.
    • Prior salary history or negotiation leverage. Under Directive (EU) 2023/970, employers may not ask applicants about pay history; policies should prohibit use of prior pay to set salaries.
    • Contract type alone (temporary vs indefinite) where work is equal in value.
    • Union membership, political opinion, or any protected status under Law 15/2022.
    • Subjective manager discretion without documented, job-related criteria and auditable evidence.

Reporting Requirements

  • Pay Register (Registro Retributivo)
    • Required for all employers, covering the entire workforce including management. Content: arithmetic mean and median remuneration for women and men, disaggregated by professional group/category/level (or equivalent system) and by each component (base salary, each supplement, extra payments, variable pay, overtime/premiums, benefits in kind, non-salary payments) and in total.
    • Format: Use the official template/tool issued by the Ministry of Labour and Ministry of Equality or an internal equivalent containing all required fields. Keep the register in writing (electronic acceptable) and up to date at least annually or when significant changes occur (e.g., new CBA wage tables).
    • Access: Legal representatives of employees receive full access. Where no representatives exist, individual employees may obtain the percentage differences in averages and medians between women and men, by the nature of remuneration and per category/group.
    • Justification: If average pay for one sex is ≥25% higher than the other within a category/group, include an objective justification explaining that the difference is unrelated to sex and based on gender-neutral criteria.
  • Equality Plan and Pay Audit (for ≥50 employees)
    • Negotiation: Mandatory negotiation with employee representatives per RD 901/2020; document negotiation minutes and agreements.
    • Content: Company diagnosis (including pay audit), objectives, measures, timetable, resources, monitoring and evaluation system, and an anti-harassment protocol.
    • Registration: File with the Official Register of Collective Agreements and Equality Plans (REGCON). Public registration of the plan is required; sensitive data should be summarized appropriately.
    • Monitoring: Periodic review according to plan schedule; full renewal at least every four years or earlier upon major organizational changes.
  • Trade union/works council reporting
    • Provide the pay register and pay audit outcomes to representatives; consult on job evaluation methodology and corrective measures; share monitoring reports at the frequency agreed in the plan.
  • Public disclosure
    • As of this guide’s date, Spain does not require general public disclosure of company pay gaps beyond equality plan registration. However, larger employers engaging in public procurement may face transparency criteria. Track sectoral/CBA rules that may require disclosures.
  • Forthcoming EU Pay Transparency Directive reporting
    • After transposition by June 2026, employers with ≥250 employees will likely report annually on gender pay gaps; those with 150–249 and 100–149 employees will report on a multi-year cycle. Expect publication on company websites and/or submission to authorities; a joint pay assessment will be required where unexplained gaps of ≥5% persist. Monitor Spanish transposition for exact thresholds, intervals, metrics, and filing channels.

Example Employee Statement

Subject: Your Request for Pay Transparency Information

Thank you for your request regarding pay equity information. In accordance with Royal Decree 902/2020 on equal pay and Article 28 of the Workers’ Statute, our company maintains a pay register that includes the average and median remuneration of women and men by professional group/category/level and by each pay component.

As there are no legal employee representatives at your workplace, we are providing the following information, as required by law: the percentage differences between the average and median remuneration of women and men for each relevant professional group/category/level, by the nature of remuneration (base salary, supplements, variable pay, overtime/premiums, benefits in kind, and total).

This information is aggregated and does not identify any individual employee. If you have further questions about our pay-setting criteria, which are gender-neutral and based on factors such as job responsibilities, seniority, qualifications, performance, and working conditions, please let us know. Where any average difference of 25% or more exists within a category, we include an objective justification in our register.

If legal employee representatives are elected in the future, they will be entitled to access the full pay register. You may also contact HR to review our equality plan measures and the safeguards we apply to ensure equal pay for equal work or work of equal value.

Remediation Framework

  • Investigation
    • For each flagged comparator group, assemble case files: employee-level comp history, job evaluation results, performance documentation, seniority, qualifications, working conditions, and CBA rules. Validate data accuracy first.
    • Test objective justifications against policy and evidence. Disregard explanations based on prohibited or unsubstantiated factors (e.g., prior salary, negotiation).
  • Decision and correction
    • Where gaps are not objectively justified, design corrective actions: base pay adjustments to aligned reference points, supplement recalibration, or variable pay rule changes. Prioritize structural corrections that prevent recurrence (e.g., leveling bands, standardizing starting salaries).
    • Effective date: Implement corrections promptly, ideally in the next payroll cycle after approval, with a target remediation window of 3–6 months for most cases, faster where discrimination is evident.
    • Retroactivity: Where unlawful discrimination is identified, assess and pay back pay with interest in accordance with court guidance or negotiated resolution; document rationale for periods and amounts.
  • Joint pay assessment (anticipating EU Directive)
    • If a ≥5% gap persists in any category and remains unexplained after assessment, conduct a joint pay assessment with employee representatives, including root-cause analysis, measures, timelines, responsible owners, and outcome targets. Publish/submit as required post-transposition.
  • Monitoring and appeals
    • Establish quarterly monitoring of pay movements, new hire offers, promotions, and variable pay awards, with exception reporting for potential bias.
    • Create an internal appeal process enabling employees to raise pay-equality concerns confidentially, with defined timelines for investigation and response.
    • Update the equality plan with new measures where monitoring shows slippage; re-run the pay audit annually.

Compliance Calendar

  • January–February: Close prior-year payroll; finalize annualized data (including 14th payments if applicable); refresh job mappings and CBA updates.
  • March–April: Prepare and approve the annual pay register; deliver to employee representatives; provide aggregated disclosures for non-represented employees upon request.
  • April–June: Conduct annual pay audit analytics for equality plan monitoring; negotiate any updates with representatives; register amended plan if material changes.
  • Quarterly: Monitor hires, promotions, and variable pay awards; run exception reports and micro-remediations.
  • Within 4 years of equality plan effective date: Renew and re-register the plan; earlier renewal upon major organizational changes.
  • By 7 June 2026: Prepare for Spain’s transposition of Directive (EU) 2023/970 (update policies, systems, and reporting).
  • Annually (post-transposition, if applicable): Submit/publish gender pay gap report for ≥250 employees; every 3 years for mid-sized employers per Spanish transposition detail.

GDPR and Data Management

  • The lawful basis for processing pay and job data for the pay register and equality plan is compliance with legal obligations (GDPR Art. 6(1)(c)) and, where analyses extend to workforce equality monitoring, legitimate interests (Art. 6(1)(f)) balanced against employee rights. Avoid processing special-category data unless strictly necessary and supported by an exemption.
  • Sex data used for the pay register are not special-category under GDPR, but any processing of data revealing racial or ethnic origin, health/disability, sexual orientation, or gender identity is special category and generally prohibited unless a specific legal basis applies (GDPR Art. 9(2), e.g., employment/social protection law, substantial public interest). Default to not collecting such data; if collected for lawful diversity purposes, aggregate and protect strictly.
  • Apply data minimization: collect only fields required for the register and audit; pseudonymize identifiers; segregate identity data from analysis datasets; restrict access on a need-to-know basis. Adopt role-based access controls for HR analytics.
  • Conduct a Data Protection Impact Assessment (DPIA) for large-scale or complex pay-equity analytics, especially where special-category data are processed or results will be disclosed to representatives or regulators.
  • Implement robust security: encryption at rest and in transit; secure data lakes; logging and monitoring; vendor due diligence for any external analytics processors; data processing agreements with standard contractual clauses where relevant.
  • Define clear retention rules: retain pay register and equality plan documentation for the statutory limitation period for labor claims and inspectorate audits (typically at least 4 years; longer where litigation is foreseeable). Delete or anonymize analysis datasets after the retention period.
  • Respect data subject rights: enable access, rectification, and objection where applicable; provide privacy notices explaining pay transparency processing; route requests through established GDPR response workflows with statutory deadlines.
  • For cross-border transfers (e.g., group analytics offshore), ensure an adequacy mechanism (e.g., EU adequacy decision, SCCs) and conduct transfer impact assessments; localize storage in the EU when feasible.
  • Avoid small-cell disclosures: for groups with fewer than 3 employees per sex, aggregate to higher-level groups before disclosure to prevent indirect identification; this aligns with AEPD risk-based privacy expectations.

Useful Resources

Important Disclaimer: This guide is based on information available as of August 2025 and is subject to change. The content provided does not constitute legal advice and is for informational purposes only. Total Rewards professionals should seek qualified legal counsel and local employment law expertise before making decisions or taking actions based on this guidance. Laws and regulations vary by jurisdiction and can change frequently. Always consult with local legal experts and relevant government agencies for the most current requirements.

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