Remediation
Joint pay assessment under Article 10: the 5% trigger
A joint pay assessment under Article 10 of the EU Pay Transparency Directive is triggered when three conditions coincide: an average pay gap of at least 5% in a worker category, no justification by objective, gender-neutral criteria, and no remediation within six months of the pay report. The employer must then assess and correct pay jointly with worker representatives.
The three trigger conditions in detail
The mechanism only applies when all three conditions are met: first, a gap of at least 5% in average pay in any category of workers performing equal work or work of equal value. Second, the employer cannot justify the gap with objective, gender-neutral criteria – such as professional experience, qualifications or market allowances, provided they are applied consistently and documented. Third, the unjustified gap was not remedied within six months of submitting the pay report.
In practice, every gap of 5% or more is a case that needs either a documented justification or a remediation plan with a deadline. Without case management, you lose exactly the six months that make the difference.
What the joint assessment covers
The assessment is carried out in cooperation with worker representatives and includes in particular: the analysis of the proportion of female and male workers per category, information on average pay levels and complementary components, identification of the reasons for pay differences, the effectiveness of existing measures, and concrete remediation measures with a timeline. The results must be made available to workers and the monitoring body.
Objective justification: what holds up and what does not
Defensible criteria are gender-neutral, consistently applied and evidenced: documented professional experience, formal qualifications, performance evaluations under a transparent procedure, shift or hardship allowances. Not defensible are blanket references to negotiation skills, historical salaries or unevidenced market reasons – especially since the Directive prohibits asking about pay history in recruiting.
Timing of documentation is decisive: a justification constructed only after the gap becomes known will convince neither worker representatives nor a court. Criteria belong in ongoing pay decisions, not in hindsight.
Organising remediation
A defensible remediation process follows a clear pattern:
- Generate gap cases per category automatically from the analysis and assign severity.
- Run the justification review with documented criteria and owners.
- Where justification is missing: a remediation plan with budget, owner and deadline before the six months expire.
- Verify effectiveness in the follow-up analysis and secure the entire history in the audit trail.
Frequently asked questions
Does every gap above 5% automatically trigger a joint pay assessment?
No. It is only required if the gap is additionally not justified by objective, gender-neutral criteria and was not remedied within six months of the report.
Which metric does the 5% threshold refer to?
The average pay gap between female and male workers within a category of workers performing equal work or work of equal value.
Who must participate in the joint pay assessment?
The employer conducts it jointly with worker representatives. Results must be made available to workers and the monitoring body.