Pay transparency is now a ‘dealbreaker’ for UK workers, SD Worx finds

Pay transparency has moved from a “nice to have” to a deciding factor for UK workers, with new research from SD Worx finding that 72% of UK employees say pay transparency is important or very important in their decision to stay with or join an organisation.

However, despite the growing importance of pay transparency in the workplace, awareness remains low. Only 29% of UK employees say they are aware of the EU Pay Transparency Directive and what it could mean for pay transparency expectations at work. Expectations are also moving in one direction: 53% of UK employees say they expect pay transparency to increase in the coming years.

The EU Pay Transparency Directive is accelerating the shift towards greater pay openness across Europe, requiring employers in EU markets to be more transparent about pay and to take action where there are unexplained differences. While the UK is not covered by EU legislation, the direction of travel is clear: as pay transparency becomes a standard expectation elsewhere, UK employees are increasingly likely to compare practices and expect clearer information about pay, progression and fairness. EU member states must transpose the directive into national law by 7 June 2026.

On the employer side, 62% of UK employers say their organisation is aware of the directive, and 63% say they already have the foundations in place to meet the type of pay transparency requirements being introduced in Europe. Readiness differs by organisation size: 53% of employers with fewer than 100 employees say they have everything in place, compared with 60% of organisations with 1,000+ employees.

Many UK employers also report they are already taking practical steps, with 68% saying they regularly review pay data to identify and address potential pay gaps. Yet employees are less convinced this is translating into action. Less than half (47%) believe their organisation is committed to closing pay gaps.

The research also highlights a gap between employer confidence and employee experience. While 72% of UK employers agree that their organisation pays employees fairly for the work they do, only 54% of UK employees agree their pay fairly reflects the work they do, and 56% say their pay is fair compared with colleagues in similar roles within the organisation.

As organisations face growing scrutiny over fairness and pay decisions, the research suggests many UK employers are strengthening both reward communication and financial wellbeing support. More than a quarter (28%) say they provide pay transparency tools such as pay ranges, salary bands or internal equity dashboards, while 23% provide total reward statements to help employees understand their overall package. Alongside transparency measures, employers are also leaning into everyday financial support: 32% offer employee discounts or cost-of-living support, 25% provide short-term financial assistance such as salary advances or employee loans, and 16% offer earned wage access (access to pay already earned before payday). A further 18% offer digital or flexible payment options such as pay cards, digital wallets or instant pay.

UK employers can get ahead of rising employee expectations by doing the groundwork now: building clear job architecture and salary bands, tightening governance around pay decisions, and routinely analysing pay outcomes to spot unexplained differences. These steps can strengthen trust today and help employers futureproof for a world where pay transparency expectations, and potentially regulation, are likely to increase.

SD Worx, the leading European provider of HR and payroll services, supports both small and large organizations in addressing their HR and payroll challenges. To stay in touch with employers and employees, SD Worx regularly conducts in-depth surveys across Europe. The analysis of the most recent “HR & Payroll Pulse” survey offers organizations valuable insights to refine their HR and payroll strategies and make them future-proof. 

The survey was conducted between January 27 and February 20, 2026, in 16 European countries—Belgium, Germany, Finland, France, Ireland, Italy, Croatia, the Netherlands, Norway, Poland, Romania, Serbia, Slovenia, Spain, the United Kingdom, and Sweden—by the SD Worx Research Institute. A total of 5,936 HR decision-makers and 16,500 employees were surveyed. The results provide a representative picture of the labor market in each country.