Donna Stephenson
Founder/CEO, Emerald Zebra
In a talent market like Cyprus, especially in complex, regulated sectors like FinTech, Tech, Financial Services and iGaming, there are no quick fixes for attracting and retaining the right talent. But there is one powerful shift that’s already reshaping how competitive companies hire: salary transparency.
Why Cyprus Employers Need to Act Now
The EU Pay Transparency Directive comes into force by June 2026, requiring companies to include salary ranges in job ads and to grant employees the right to know how their pay compares to peers. But the conversation around pay transparency isn’t just about compliance, it’s about competitiveness.
Since 2021, I’ve been deeply committed to encouraging pay transparency across the business community in Cyprus. I’ve urged employers to set salary budgets in advance and include them in job adverts. I’m proud to say that this approach has led to a significant shift: 90% of the roles I advertise on behalf of my clientele or discuss with candidates now include a defined budget. That’s not regulation, it’s leadership and understanding the benefits of doing so far outweigh not doing so.
Understanding that compliance with the directive will require a lot of preparation effort on the side of employers, last year I dedicated an entire HR PowerBreakfast event in Limassol to this topic, with over 100 HR professionals, executives and founders in attendance. We invited Ms. Yiota Kambouridou from the Ministry of Labour (Department of Labour Relations, Ministry of Labour and Social Insurance, Labour Attaché to the EU) to deliver insights on the directive, followed by a panel of HR leaders and C-level executives who discussed their own strategies and experiences. The consensus? Pay transparency isn’t just needed in Cyprus, it’s long overdue!
Why It Works And What’s At Stake
Companies that adopt pay transparency early will be in a much stronger position than those that wait for Cyprus to transpose the EU law. Those delaying may face fines, but the bigger cost is reputational: candidates now expect to see salary ranges. A “wait-and-see” approach will put employers at a disadvantage.
Here are just a few of the benefits based on hiring insights:
Benefit: Why It Matters in Cyprus
Candidate Trust: Builds credibility with professionals who are increasingly questioning opacity
Hiring Efficiency: Reduces negotiation time and candidate drop-off
Gender Pay Equity: Forces consistency in compensation practices, reducing bias
Better Employer Branding: Salary visibility boosts your reputation in a tight-knit local market
Internal Retention: Staff who understand where they sit within pay bands are more engaged
What to Avoid
- Don’t just publish numbers explain how they’re calculated. Pay structure transparency builds trust.
- Prepare for internal conversations and train your line managers accordingly. Employees will compare. Make sure you can justify differences fairly.
- Keep pay ranges updated, this is so important, especially for retention. With inflation and rising expectations, outdated bands can hurt more than help.
Key Requirements
The EU Pay Transparency Directive, was adopted in 2023 and it introduces legally binding rules that aim to eliminate pay discrimination and promote equal pay between men and women. Here are the core obligations to take note of:
Applies to:
- Companies with 100+ employees initially (reporting requirements scale by company size)
- Companies with 250+ employees must report pay gap data by June 2027.
- Companies with 150–249 employees must report by 2028.
- Companies with 100–149 employees must start by 2031.
- However, job advert and salary transparency rules apply to all employers regardless of size. You need to set a price for your job vacancies.
The directive goes further which makes it even more interesting and at the same time pressing to be an early adopter with the main obligations as follows:
1. Salary Range Disclosure: Employers must disclose the pay range (or starting salary) in all job adverts or before interviews begin.
2. Right to Pay Information: Employees can request information about average pay levels for their category of work, broken down by gender.
3. Pay Reporting: Larger employers must report gender pay gap data and conduct joint pay assessments if gaps exceed 5%.
4. Pay Structure Transparency: Employers must clearly define pay and career progression criteria.
5. No Pay History Questions: Employers may not ask candidates about their pay history.
6. Burden of Proof: In discrimination cases, the burden shifts to the employer to prove they complied with equal pay laws.
My Message to Employers in Cyprus
Get ahead now. Start with internal pay reviews, benchmarking and preparing your teams for open, informed conversations around pay. Use 2025 wisely. Don’t wait until 2026 to scramble into compliance, lay the groundwork early. Learn from early adopters. I’ll be happy to connect you to a few of them. The companies already taking action are seeing results: faster hires, better candidate engagement and stronger internal trust.
Definitely avoid a wait and see approach.
“We’ll wait and see how Cyprus transposes the EU directive, then weigh the fine against the cost of implementation.” That mindset completely misses the point.
This isn’t just about compliance. It’s about credibility and it underscores your entire talent attraction and retention strategies.
In a small market like Cyprus, your employer brand is under constant scrutiny. Candidates expect transparency. Employees expect fairness. The companies moving early are the ones standing out and attracting the talent others aren’t reaching.
The directive will become law. Implementing it properly, benchmarking roles, defining salary bands, training teams, adjusting policies, all takes time, effort and resources.
Final Thought
Pay transparency is not a tick-box exercise for EU compliance, it’s a shift in how modern employers build trust, attract talent and shape their culture. I’ve championed this in Cyprus since 2021 because I’ve seen the impact: better hiring conversations, improved candidate fit and healthier workplace dynamics. In a market like ours, those things matter. If you’re unsure where to begin, I’m always happy to share practical steps and insight from the HR community so you can lead with clarity, not react under pressure.
