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PAIT® solution: technological support for the new equal pay and pay transparency regulations

22/10/2024
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PAIT: apoyo tecnológico para cumplir con la normativa

The Spanish government’s Annual Regulatory Plan 2024 includes incorporating the European Union’s Directive on Equal Pay and Pay Transparency into Spanish law. These new regulations establish a set of equal pay and pay transparency obligations for companies.

Spain will be one of the first EU countries to undergo substantial changes in addressing pay with a gender perspective and in pay gap index transparency, as well as in its pay determination and management processes. 

But beyond the issue of regulatory compliance, organizational transparency—especially in relation to human resources processes and compensation, inclusion, and pay equity—is highly valued by individuals and has a direct impact on companies’ ability to attract and retain employees, thus becoming a key factor in the “war for talent” and another reason to start this transparency process as soon as possible.

Firstly, the regulations establish that any pay difference equal to or greater than 5% per level of equivalent job groupings must be justified. In the event that these differences cannot be adequately justified, companies will be obliged to implement adjustment measures. In addition, if wage differences are not remedied, there must be a joint assessment with the employees’ legal representatives (RLPT).

Moreover, companies must provide annual information to their staff on the availability of salary information, specifying the average salary of women and men by job level, and must report wage management criteria, detailing how salaries are determined and increased.

In addition, salary differences must be justified to an equality agency, thus ensuring transparency and equity in compensation policies.

Igualdad

PAIT® solution: technological support for regulatory compliance

To support companies in complying with these new requirements, Peoplematters and GMV have developed the PAIT® (Pay Analytics Intelligence Tool) technological solution. This cutting-edge tool allows Peoplematters and its clients to incorporate dynamic analysis and artificial intelligence algorithms in consulting services, providing an exhaustive and visual analysis of the pay gap through multiple variables.

PAIT® not only facilitates the identification of trends for improvement, but is also prepared to predict and remedy the future performance of the pay gap. Through strategic workforce planning and other variables, it provides concrete and effective solution paths.

For more information on the regulatory compliance consulting services and potential analysis and study of alternatives that PAIT® provides, go to https://www.peoplematters.com/igualdad-y-transparencia-retributiva/.

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