KPMG’s Pay Transparency tool and services

In response to the European Union’s Pay Transparency Directive (2023/970), organizations across the EU are now required to implement clear pay structures, conduct accurate reporting, and take meaningful steps to close the gender pay gap. To support businesses in meeting these obligations, KPMG has developed the Pay Transparency Tool (PTT) - a robust, data-driven solution designed to deliver clarity, compliance, and strategic insight.

What is KPMG’s Pay Transparency Tool?

KPMG’s Pay Transparency Tool (PTT) is a digital solution designed to help organizations measure, understand, and address the gender pay gap. Built in Power BI and hosted on the KPMG Digital Gateway platform, the tool leverages Microsoft Azure to deliver powerful analytics and actionable insights. It enables businesses to comply with the European Union’s Pay Transparency Directive by providing a clear view of pay structures and facilitating targeted corrective actions.

PTT allows organizations to:

Analyze gender pay gaps using raw HR data
Visualize both adjusted and unadjusted pay gaps
Identify outliers and structural issues
Model remediation strategies and assess financial impact

Through a single integrated dashboard, users gain visibility into all compensation elements, including variable and indirect pay.

What is the EU Pay Transparency Directive?

The EU Pay Transparency Directive (2023/970) mandates that companies implement transparent pay structures and report on gender-based pay disparities. The directive requires disclosure of:

Average and median gender pay gaps
Gaps in supplementary and variable pay (e.g., pensions, stock options)
Percentage of men vs. women receiving variable pay
Gender distribution across pay quartiles
Pay gaps by employee category based on internal job classifications

If a pay gap of 5% or more exists in any category and is not justified or corrected within six months, a joint pay assessment becomes mandatory.

Sanctions for non-compliance include:

Compensation: Victims of gender pay discrimination are entitled to full back-pay and benefits.
Reversal of Burden of Proof: Employers must prove that no discrimination occurred if transparency rules are breached.
Fines and Legal Action: Member States are required to define specific penalties, and equality bodies or employee representatives may act on behalf of affected workers.

How can KPMG’s PTT help?

KPMG’s PTT is designed to go beyond compliance. It equips organizations with the analytical power and strategic insight needed to address gender pay disparities in a meaningful and sustainable way, through:

Comprehensive analysis and visualization

At the heart of the tool is its ability to transform raw HR data into clear, actionable insights. Organizations can instantly view both adjusted and unadjusted gender pay gaps, segmented by job level, department, or location. The tool also highlights the underlying drivers of pay differences—such as seniority, job value, and contract type—enabling a deeper understanding of structural inequalities.

Intelligent outlier detection

The PTT automatically identifies anomalies in pay data, flagging outliers and high-risk groups. This functionality supports targeted interventions and risk mitigation, while also facilitating transparent discussions with employee representatives.

Strategic planning capabilities

The tool includes built-in simulation models that allow organizations to plan corrective actions with precision. Users can calculate the financial impact of various remediation strategies, model scenarios by department or job group, and develop timelines to achieve full compliance with regulatory requirements.

Granular insights

The PTT offers the ability to drill down to individual employee data, ensuring accountability and readiness for audits. This level of detail supports informed decision-making and enables organizations to share relevant insights with managers, employees, and leadership teams.

Organizational benefits

Developed by a multidisciplinary team of reward experts, legal advisors, and data specialists, the PTT delivers more than just technical functionality. It reduces administrative burden, enhances transparency across the workforce, and strengthens trust in compensation practices. By leveraging data strategically, organizations can align their reward policies with broader equity goals and regulatory expectations.

Scalable and directive-aligned reporting

Fully aligned with the EU Pay Transparency Directive, the PTT supports multilingual and multi-entity reporting. It accommodates all forms of remuneration - cash or in-kind, direct or indirect - and ensures that organizations can meet the directive’s expanded reporting requirements with confidence.

Want to learn more?

At KPMG in Belgium, we see pay transparency compliance not just as a legal obligation, but as an opportunity to enhance fairness, strengthen trust, and improve workforce engagement.

We support organizations in assessing their current pay practices, identifying compliance gaps, and implementing tailored solutions that align with both regulatory demands and internal reward strategies. This includes helping you navigate the complexities of regulatory developments, such as the EU Pay Transparency Directive.

Our multidisciplinary team includes HR, legal, and data experts who collaborate to ensure end-to-end support - from legal interpretation and job grading to pay gap analysis and reporting.

We also offer technology-enabled solutions, including the PTT, to help you visualize pay gaps, assess risks, and model effective remediation strategies.

For a personalized demo or tailored advice, contact KPMG’s Pay Transparency team.