Draft bill implementing the EU Pay Transparency Directive introduced in the Danish Parliament
As described in our newsletter of March 2026, which you can read here, the draft bill introduces significant new obligations for all employers, including:
- establishment of pay structures based on objective and gender-neutral criteria;
- salary disclosure requirements during recruitment;
- employees' right to receive information about their individual pay, etc.;
- extensive pay reporting duties for larger employers;
- specific provisions on compensation; and
- a stricter burden of proof rule where the employer has failed to comply with certain obligations under the new provisions.
The draft bill applies to all employers in both the public and private sectors, to all employees with an employment contract or employment relationship, and - to some extent - to job applicants.
The draft bill as introduced is largely consistent with the proposed bill published for public consultation in February 2026. The most notable changes are summarised below.
Key changes compared to the February 2026 draft bill
- Entry into force: The proposed date of entry into force has been changed from 1 January 2027 to 1 March 2027.
- Criteria for determining equal value: While the criteria follow established principles in accordance with CJEU case law, the explanatory notes to the draft bill elaborate on the interpretation of the four main criteria for assessing whether work is of equal value: (i) skills, i.e. the knowledge, qualifications and competencies required to perform the job; (ii) effort, i.e. the physical, mental and psychological energy the employee must exert in the role; (iii) responsibility, i.e. the level of responsibility vested in the role; and (iv) working conditions, i.e. the environment and circumstances under which the work is performed.
- DISCO codes for pay reporting: It now follows expressly from the wording of the legislation itself, and not merely from the preparatory works, that each employee category may be broken down by six-digit DISCO codes. However, it is still important that the categorisation under the Pay Transparency Directive is not limited to employees performing the same work but is also extended to employees performing work of equal value. Therefore, a categorisation based solely on DISCO codes may not be sufficient. Employers must assess whether the pay report received from Statistics Denmark or an employer organisation accurately reflects their own categorisation of employees. Where the employer considers that the DISCO codes do not provide an accurate categorisation, the employer must prepare or supplement the pay report itself. The employer retains discretion as to the methodology used for such categorisation.
- Right to DISCO code: The draft bill also introduces a right for employees to be informed of their DISCO code.
- Consultation with employee representatives: Prior to submitting the pay report to the Labour Market Institute for Equal Pay, employers must consult employee representatives to verify that the underlying information is accurate and that the methods used are appropriate. Notably, the February 2026 draft also required the information and the methods to be "accurate", but the draft bill as just introduced further requires the methods to be appropriate.
- Compensation for inquiring about pay history: The draft bill expressly provides that inquiring about a job applicant's pay history during recruitment may give rise to a claim for compensation.
Entry into force and timeline
If adopted, the bill will enter into force on 1 March 2027. The first reading in the Danish Parliament has been scheduled for 22 October 2026.
Our employment law team is closely monitoring developments and is available to advise on all aspects of the draft bill and its implications for your organisation. We recommend that employers begin preparing now to ensure compliance with the new obligations once the bill enters into force.