Equal Pay Day: Equal pay for equal and equivalent work

Gender equity: part of our corporate structure

At Forvis Mazars, gender equity is not just a trend. Diversity and inclusion are part of our DNA and firmly anchored in our corporate strategy. With numerous projects and initiatives, we are committed to promoting equal opportunity and diversity and consistently supporting women in their careers.

We continuously monitor our gender pay gap using specialised tools to better integrate gender equity into our corporate processes. We do this because we believe it is the right thing to do. Although we do still have an (unadjusted) gender pay gap, it is already significantly below the national average and, when adjusted, well below the critical 5% threshold. You will find more information on this in our Sustainability Report.

The gender pay gap in legislation: The EU’s Pay Transparency Directive

The regulatory aspect of this issue is also increasingly important. Since 2017, the German Pay Transparency Act (EntgTranspG) has required companies with more than 500 employees to publish periodic reports on gender equality and pay equity. The new EU Pay Transparency Directive (PTD) will not only impose stricter reporting standards in the future; employers throughout Europe will have to do significantly more to ensure gender-neutral pay.

The ETRL must be encoded in national law by 7 June 2026; otherwise it will become directly mandatory. The new German government is likely to implement the directive in good time as part of a German “Pay Transparency Act 2.0.”

The new EU directive will require more companies to disclose whether men and women are paid equally for equal work or work of equal value. Furthermore, companies with an adjusted gender pay gap in excess of 5% will be required to take corrective measure to close the gap.

There is thus an urgent need for companies to act to ensure compliance in good time. For the first time, violations of these obligations will result in sanctions such as fines. In the coming months, our experts will provide insights into the various requirements that companies will face in the future under the PTD.

Determining the gender pay gap and ensuring compliance

Defining “equivalent work” is one of the biggest challenges in pay compliance under the PTD. Smart software solutions can determine which employees in a company perform equal or equivalent work, calculate the gender pay gap, and suggest measures to minimise it. Companies can run simulations to show how much budget would be needed to reduce the gap by a given percentage and define concrete action steps. Furthermore, the necessary reports can be generated automatically.

Do you have any questions for our experts? Feel free to contact us.

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^{[1] Source: Federal Statistical Office. The unadjusted gender pay gap in Germany is 16%. The adjusted gender pay gap, which accounts for factors such as career choice and working hours, was approximately 6% in 2024.}