LONDON, August 7, 2025 – The EU Pay Transparency Directive is driving a shift in pay culture in the UK. In the future we can expect more than three quarters (76%) of UK companies to share individuals’ pay ranges with employees and almost a similar proportion (70%) to share pay range information with external candidates, regardless of legal requirements. That’s according to the 2025 Pay Transparency Survey by WTW (NASDAQ:WTW), a leading global advisory, broking, and solutions company.
The shift behind increased pay communication is led primarily by the growing regulatory requirements (59%), employee expectations (46%) and company values and culture (41%). Yet, despite these positive changes, there are improvements to be made, as organisations in the UK are still somewhat less likely to communicate pay information, compared to other countries around the world.
This is due to the belief that sharing pay ranges will lead to a significant increase in questions from employees and managers (73%), as well as increased pay negotiations (55%). Additionally, concerns regarding manager capability around explaining compensation programmes and possible employee reactions have been cited as common factors for holding back increased pay programme communication. However, companies in the UK are far more likely to educate senior leaders, managers and members of the board on pay than other countries.
Eva Jesmiatka, Europe Lead on Pay & Career Equity at WTW said: “We’re starting to see a cultural shift take place around pay in the UK despite the fact that UK companies are not directly impacted by the EU Pay Transparency Directive. Companies recognise that increased pay transparency will become a new reality which can support their employer brand and build competitive advantage in the talent market. In order to prepare for becoming more transparent there are some important fundamentals for companies to get right. These include robust job and rewards structures, and objective HR policies and processes to ensure the delivery of equal pay. In addition, it will be important for companies to look at their future ambition for pay transparency and define how transparent they aspire to be.
“While increased regulatory requirements are the biggest driver of increased pay transparency, they are not the only driver.”
Eva Jesmiatka | Europe Lead on Pay & Career Equity at WTW
“While increased regulatory requirements are the biggest driver of increased pay transparency, they are not the only driver. With many organisations planning to take a global approach to their pay programme communication, it is important to consider how the employment landscape is anticipated to evolve as more insights into pay programmes become the norm.”
In the UK, 62% of companies use metrics to measure the impact of pay transparency. The most prevalent metrics used are changes in the gender pay gap, gender pay gap relative to peers and impact on employee engagement.
However, most employers are not making use of AI or conventional technology to leverage data. Just 13% are planning on using AI to support pay information communication, market compensation research or pay gap identification, citing data privacy and compliance risks, as well as integration challenges with HR systems as the most common barriers to using AI in pay transparency-related programmes.
Gaby Joyner, Head of Employee Experience Europe at WTW said: “With many organisations planning to take a global approach to their pay programme communication, organisations need a clear, consistent and well-documented approach to disclosure to ensure accurate data is shared with candidates and employees.
“Educating relevant stakeholders and building employee trust is paramount in this process, as well as leveraging relevant technologies to support a clear and transparent communication process.”
WTW’s 2025 Pay Transparency Survey was conducted in June 2025. In the UK, 225 respondents completed the survey. Globally, 1915 respondents completed the survey.
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