While the first reporting deadline is set for 2027, the report noted that employers’ last opportunity to make wage adjustments will be in 2025, as the first report will be based on 2026 payroll data.

These concerns come as the report also found that only 12% of employers are “fully prepared” for the upcoming directive.

Another 61% feel somewhat prepared, while 26% said they are “not at all prepared” for it.

“The EU Directive on pay transparency is the most important piece of pay equity legislation anywhere in the world in the last 50 years,” said Christine Hendrickson, vice president of Strategic Initiatives at Syndio, in a statement.

“But I fear there are too many leaders, including some US employers with a presence in the EU, who have not yet digested the enormous change management exercise this will be.”