Wage gap analysis: mandatory reporting for companies with at least 50 employees

For several years now, companies with at least 50 employees have been required to draw up a detailed analysis of their remuneration structure every two years. The aim of this measure is to combat the gender pay gap and to check whether the remuneration policy within a company is gender-neutral. In other words, the government wants companies to investigate whether men and women earn the same wage for the same work.

Obligation for companies

Every company that employs an average of at least 50 employees must draw up a biennial analysis report on the remuneration structure, also known as the pay gap analysis. The calculation to determine whether a company falls under this obligation is made according to the rules that also apply to social elections.

The analysis report covers a period of two financial years each time. The next analysis report must cover the financial years 2023 and 2024 and must be discussed within three months after the end of the financial year. (For many companies, this means before 31 March 2025).

Contents of the analysis report

The size of the analysis report depends on the size of the company:

• Companies with at least 100 employees must prepare a full analysis report , which includes the following information:

  • The salaries and direct social benefits (for part-time workers expressed in full-time equivalents);

  • The employer's premiums for extra-statutory insurance;

  • The total of other extra-legal benefits granted in addition to wages to (some of) the employees.

• Companies with 50 to 99 employees may suffice with a brief analysis report , which only includes the following information:

  • The salaries and direct social benefits (for part-time workers expressed in full-time equivalents);

  • The total of other extra-legal benefits granted in addition to wages to (some of) the employees.

    
    

Reporting and action plan

The employer must submit the analysis report to the works council or, if there is none, to the trade union delegation. This report must be discussed within three months of the end of the financial year. Based on the information obtained, the works council or trade union delegation may, after consultation with the employer, decide to draw up an action plan if it appears that there are pay gap-related inequalities.

If an action plan is drawn up, the next analysis report should also include a section on the progress of this plan.

Sanctions for non-compliance

An employer who does not prepare an analysis report or does not submit it to the works council or trade union delegation in a timely manner risks a criminal or administrative fine.

Conclusion

The obligation to draw up a pay gap analysis is an important measure to make the pay gap between men and women transparent within companies and to tackle it if necessary. Employers are well advised to collect the necessary data in a timely manner and to carry out the analysis correctly in order to avoid sanctions and to contribute to a fair and gender-neutral remuneration policy.

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