A New Tool to Manage Pay Gaps

Pay Transparency: How to Prepare for Directive 2023/970

The deadline for transposing the European directive on pay transparency has now passed. Luxembourg's law has not yet been adopted, but companies can no longer afford to wait. Microtis designed Gesper EquiPaie to address this challenge.

Obligations That Go Far Beyond Reporting

Once the law takes effect, employers will need to disclose salary ranges in job postings, stop asking candidates about their previous pay, and provide employees who request it with the criteria used to determine their compensation.

The level of reporting obligations will vary depending on company size, but one threshold will apply to all: as soon as an unjustified pay gap of 5% or more is identified between comparable roles, the company will have to investigate and take corrective action. And in case of a dispute, the burden of proof falls on the employer, not the employee.

Data: The Real Challenge for Companies

Producing a report isn't the hard part. The real obstacle is the reliability of the underlying data. Are job evaluation criteria objective and documented? Are salary grids consistent? Can pay gaps be explained by measurable factors: experience, skills, responsibilities? Is the available historical data robust enough to be used?

In Luxembourg, this is further complicated by the wide variety of collective agreements and fringe benefits specific to each sector.

What Gesper EquiPaie Offers

The module analyzes compensation across several dimensions (job category, gender, hierarchical level) using configurable evaluation methodologies, including HAY-inspired approaches.

Every analysis is logged, can be locked and then archived to ensure traceability. Gesper EquiPaie also flags classification discrepancies and salaries that fall outside defined ranges, giving HR teams a head start before an issue surfaces during an audit or reporting cycle.

The module integrates with the Gesper ecosystem as well as other HR tools, ERP systems, or payroll solutions already in place, centralizing the necessary data within a secure and auditable environment.

Why Act Now

Consistent job classifications, reliable salary histories, and clearly documented compensation criteria, these foundations can't be built in the final weeks before a legal deadline.

And beyond compliance, a transparent, justifiable pay policy becomes a genuine HR asset: helping attract, retain, and build trust.

More information: https://www.microtis.lu/fr/solutions-rh/gesper-equipaie