Pay equity: what it is, how to run a pay equity analysis, and how to close the gaps
Pay equity means equal pay for work of equal value. This guide covers how to run a rigorous pay equity analysis step by step, and how to close the gaps you find.

Norway is widely recognised as one of the world's most gender-equal nations, consistently ranking among the top countries for workplace equality. For decades, the country has maintained a culture of transparency around salaries, with citizens able to access tax information publicly since 2001.
Yet despite this long-standing openness, Norway's gender pay gap remains stubborn at around 12%, with little improvement in recent years.
This is where the EU Pay Transparency Directive (Likelønnsdirektivet) comes in.
Although Norway is not an EU member state, the government has committed to implementing the Pay Transparency Directive into Norwegian law.
When implemented, this will introduce stricter pay transparency and gender pay gap reporting requirements for Norwegian employers, going beyond what Norway's current Equality and Anti-Discrimination Act (Likestillings- og diskrimineringsloven) requires.
This article serves as a comprehensive guide to ensure you understand the current legal landscape, what's changing, and how to prepare.
Get prepared with the EU Pay Transparency Directive checklist →
The Norwegian Equality and Anti-Discrimination Act (2017:51), or Likestillings- og diskrimineringsloven, is comprehensive legislation that aims to promote equality and prevent discrimination across all areas of society, including the workplace.
It was introduced in 2017 with the core aim of integrating several previously separate discrimination laws for different e.g. the Act on Equality between the Sexes had been in place since 1978 but was specific to gender discrimination only (not encompassing disabilities, religion, ethnicity, etc.)
The Act makes it illegal for employers to discriminate based on gender, pregnancy, parental leave, caregiving responsibilities, ethnicity, religion, disability, sexual orientation, gender identity, gender expression, age, or other essential characteristics.
Compliance with the Equality and Anti-Discrimination Act is monitored by Norway's Equality and Anti-Discrimination Ombudsman (Diskrimineringsombudsmannen - LDO) and the Discrimination Tribunal (Diskrimineringsnemnda).

The key requirements within the Equality and Discrimination Act on pay transparency and equal pay are as follows:
The EU Pay Transparency Directive will introduce new requirements beyond current Norwegian law, including:
The EU Pay Transparency Directive is new legislation set by the European Council with the purpose of closing Europe's gender pay gap by increasing pay transparency amongst EU companies.
Although Norway is not an EU member state, it participates in the European Economic Area (EEA). The Directive has been deemed EEA-relevant, and the Norwegian government has committed to implementing it into national law.
The Directive was officially adopted by the European Council in June 2023. EU member states have until 7 June 2026 to transpose it into their national laws. For Norway and other EEA countries, the timeline is less certain; the Directive must first be formally incorporated into the EEA Agreement, and then Norway must transpose it into domestic legislation.

The EU Pay Transparency Directive introduces significantly stricter pay transparency and gender pay gap reporting requirements than Norway's current law. Here are the key differences:
1. Employee understanding of pay and career progression
The Directive requires employers to make 'easily accessible' to employees the objective, gender-neutral criteria used for determining pay for each job level, and for progression between levels. This is new under the Directive (the current Norwegian law does not explicitly require this level of transparency).
2. Employee rights to pay information
Under the current Equality Act, employees can request information about colleagues' pay if they suspect discrimination. The Directive strengthens this by requiring employers to actively inform employees at least once per year of their right to request pay information for peers who perform equal work or work of equal value. This is a more proactive requirement than Norway's current law.
3. Job applicant rights to pay information
The Directive requires employers to disclose the salary range for all new roles to candidates before interviews. Norway's current law does not have this requirement. This is a significant change for Norwegian employers, particularly given the prevalence of the phrase "lønn etter avtale" (salary by agreement) in Norwegian job postings (this will no longer be acceptable).
4. Salary history ban
Employers are banned from asking candidates about their salary history during the hiring process. The current Norwegian Equality Act does not explicitly address this.
5. New gender pay gap reporting requirements
All employers with 100+ employees are required to submit detailed gender pay gap reports in a standardised format. The current Norwegian Equality Act requires pay reviews (biennial for private sector), but does not mandate submission to regulatory authorities or follow a standardised format.

Current requirements (Equality and Anti-Discrimination Act):
New requirements (EU Pay Transparency Directive):
The following employers must complete gender pay gap reporting:
The Gender pay gap must be calculated and reported as follows:
Employees must be informed of the results for their employee category, and any gender pay gap over 5% must be justified with objective, gender-neutral criteria, or the employer must conduct a joint pay assessment with employee representatives.
Key difference: The EU directive introduces a standardised, mandatory reporting system with a regulatory approval process, whereas Norway's current law allows employers flexibility in methodology and does not require regulatory submission.
On 20 November 2025, Norway's Ministry of Culture and Equality confirmed that it has initiated work to implement the Directive.
Because Norway is not an EU member state, the implementation process looks a little different.
The Directive has been designated as "EEA-relevant," so it will be incorporated into the EEA agreement that Norway (along with Iceland and Liechtenstein, the other EEA EFTA members) follow.
However, the EU deadline of transposing the Directive into national law by 7 June 2026 does not apply to the EEA EFTA members – and so no official implementation deadline has been set for Norway.
Once the Directive is incorporated into the EEA Agreement, Norway will then have a transitional period to transpose it into national law. So far, the Ministry of Culture and Equality has outlined the following steps:
This timeline is consistent with how Norway has previously integrated EU/EEA labour directives into domestic law.
While the final form of Norwegian implementation is not yet known, there are several indicators of how Norway may proceed:
Requirement | Current Norwegian Law | EU Directive | Status in Norway |
|---|---|---|---|
Pay equality principle | Yes, Section 34 Equality Act | Yes, Article 4 | ✓ Already in place |
Gender pay review requirement | Biennial for 50+ employees | Standardised reporting for 100+ | Update needed |
Reporting to regulatory body | Not required | Required | NEW |
Standardised reporting format | No | Yes, specified in Directive | NEW |
Salary range for job candidates | Not required | Required before interview | NEW |
Salary history ban | Not explicit | Explicit ban | NEW |
Right to pay information | Yes, on request | Yes, plus annual reminder | Update needed |
Employee pay info disclosure | On request with confidentiality | Required if similar work | Update needed |
5% threshold with action requirement | Not specified | Yes, 5% gap = action required | NEW |
Burden of proof | Employee must show discrimination | Employer must disprove | NEW |
Norway’s paradox - high gender equality ranking yet persistent pay gap - reflects the complexity of pay equity. Much of Norway's gender equality stems from strong legal protections, high female labour force participation, and access to parental leave. However, structural factors such as occupational segregation (women concentrated in lower-paid sectors) and part-time work patterns continue to drive the overall pay gap.
The EU Pay Transparency Directive's focus on standardised reporting and the 5% threshold mechanism will help Norwegian employers identify and address these deeper structural disparities, moving beyond what the current Equality Act captures.
Whether or not your organisation is immediately subject to the EU Pay Transparency Directive, now is the time to begin preparing. The requirements are substantial, and the transition from the current flexible approach to standardised, mandatory reporting will require time and investment.
Here's the 4 key steps needed to get prepared:
1. Build your job levelling and pay framework
2. Update recruitment practices
3. Establish employee pay transparency processes
4. Prepare for gender pay gap reporting
The time to start preparing is now.
By the time the EU Pay Transparency Directive is formally incorporated into Norwegian law and implementation deadlines arrive, organisations that have already begun their preparation will be well-positioned to comply smoothly and realise the benefits of transparent, equitable pay practices.
We've put together an EUPTD checklist to help you work through these preparation steps for your company. Go to the checklist →
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Pay equity means equal pay for work of equal value. This guide covers how to run a rigorous pay equity analysis step by step, and how to close the gaps you find.

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