Pay Audits vs. New EU Requirements — What Changes?
Sweden already has one of the EU's strongest pay audit frameworks. But the EU directive adds new requirements: reporting to DO, the 5% threshold, and joint pay assessments. Here are the differences.
Existing Swedish Rules
Since 2009, Sweden has required annual pay audits under Chapter 3 of the Discrimination Act. Employers with 10+ employees must map and analyze pay differences between women and men, as well as between groups performing equal or equivalent work. Results must be documented and action plans established.
What Does the EU Directive Add?
The EU directive adds several new elements beyond the existing pay audit: external reporting to DO (not just internal documentation), specific key metrics that must be calculated and reported, quartile distribution of women and men, the 5% threshold as a trigger for joint pay assessments, and reversed burden of proof in discrimination cases.
Joint Pay Assessments — New Requirement
If the pay gap in a worker category exceeds 5% and cannot be justified by objective factors, the employer must within six months conduct a joint pay assessment together with worker representatives. This goes beyond the Swedish pay audit which does not have the same automatic trigger.
How Does This Affect You as an Employer?
If you already conduct annual pay audits, you have a good foundation to build on. The key additions are: formal reporting to DO, calculation of the new key metrics, handling of the 5% threshold, and increased transparency towards employees. Lönedirektiv can help you automate the entire process.