The EU Pay Transparency Directive is set to bring significant change to how companies in Cyprus and across the EU handle pay practices, recruitment and internal equity. While member states have until 7 June 2026 to incorporate the directive into national law, many forward-thinking employers are already preparing.
At Emerald Zebra, we work closely with companies across FinTech, Tech, Financial Services and iGaming. We’re seeing a growing need for clarity not just on what the directive requires, but what it means for the day-to-day reality of hiring and managing teams in Cyprus.
What is the EU Pay Transparency Directive?
The directive’s aim is: equal pay for equal work. It introduces new rights for employees and new responsibilities for employers, especially around pay disclosure, internal equity, and hiring practices.
Key elements include:
- Salary ranges must be disclosed — typically in the job advert or before interview.
- Employers may no longer ask about a candidate’s current salary.
- Pay secrecy clauses are banned — employees are free to discuss their salaries.
- Employers must be able to justify pay levels, especially when challenged, with objective and gender-neutral criteria.
What Will Change in the Hiring Process?
1. Salary Conversations Will Move Earlier
Pay will become a front-loaded topic in hiring and finally, not reserved for the final stages. Salary ranges must be made visible (finally! Although we’ve been championing this for years in all that we do!), and hiring managers will need to ensure their messaging is consistent with internal structures.
This is a cultural shift for many organisations. But it also builds trust and helps candidates self-select more accurately. Naturally!
2. Previous Salary Can’t Be Asked
This one is a big shift for how employers in Cyprus recruit. Offers must be based on the role’s value not the candidate’s past pay. Our key note speaker, Yiota Kambouridou of the Cyprus Ministry of Labour delivered a timely presentation at our HR Powerbreakfast in June 2024 were she stressed: Give your job vacancy a price! This change calls for structured internal benchmarking and pay frameworks that are defensible, consistent and fair.
We were ahead of the curve last year in delivering content, live presentations and discussions to our audiences in Cyprus on how to prepare for the directive. We hope you took note as it’s a lot of preparation to be ready with less than one year to go until June 2026 when the directive is enforced.
Note this is positive!
It’s an opportunity to re-centre hiring around role value, not individual history.
3. Candidates Will Expect Transparency
Candidates are likely to ask more questions about how roles are evaluated and how pay levels are determined. Being able to explain this clearly is no longer optional, it’s a strategic necessity.
The organisations that can answer with confidence will be the ones that retain trust and talent. We’re already seeing this in feedback from candidates.
4. Offers Must Be Justified and Defensible
Salary offers for the same role will need to fall within established bands and be based on objective factors such as skills, responsibilities and scope of work, not on negotiation strength or background – or who you know!
What About Internal Pay Equity?
The directive doesn’t stop at recruitment. During employment, companies must also:
- Respond to employee requests for information about their own pay and average pay for similar roles, broken down by gender
- Share the criteria for salary progression, promotions, and raises
- Eliminate pay secrecy clauses in contracts and culture
Transparency will become a norm and inconsistencies will be more visible if left unaddressed.
What Employers in Cyprus Should Do Now
Even before Cyprus formally enacts the directive, every employer regardless of size should be preparing.
1. Review Job Structures
Create or update internal job evaluation frameworks to define clear levels, titles and expectations. This helps ensure equal pay for equal work.
2. Implement Salary Bands
Develop salary ranges per role and apply consistent rules on how to position candidates within them. Allow for variation but only when justified.
3. Benchmark to Market Rates
Use salary data tools (like our Cyprus Salary Survey that collects data from external employees and employers as well as in-house agency data) to ensure your pay is competitive and aligned with local standards. You’ll want to properly benchmark against robust data. Do your research.
Train Hiring Teams
Ensure recruiters and hiring managers are ready to discuss pay ranges early in the process confidently and consistently.
Prepare for Internal Requests
- Make sure your HR/payroll systems can produce comparative pay data if an employee asks even if you’re a small team.
The Employer Brand Perspective
Pay transparency isn’t just a compliance issue, it’s a reputation issue. It always has been! For years job seekers are frustrated with the lack of transparency, time wasted and loss of interest. A lot of money is spent annually by employers to promote their employer brands, yet to have it tarnished by lack of salary transparency in the recruitment process and job advert displays.
Your job adverts are a signal. Including a fair and well-positioned salary range not only satisfies legal requirements, it tells candidates you value fairness and openness.
Handled well, this builds trust and attracts the kind of professionals who value it.
Final Thought
The EU Pay Transparency Directive calls for change but it also presents a real opportunity to strengthen your approach to hiring, compensation and culture.
At Emerald Zebra, we help employers align recruitment strategy with evolving market and compliance expectations. From salary data to employer branding, we’re here to support your transition thoughtfully and practically.
📩 If you’d like help benchmarking salaries or adapting your hiring model, let’s talk.
