More than three-quarters of UK employers say they will start sharing employee pay ranges internally, even though they are not legally required to do so, according to a new survey revealing a major shift in pay culture.
The change is being driven by both internal and external pressures: regulatory developments abroad, rising expectations from employees and a growing push for fairness and clarity in reward systems. Among UK employers surveyed, 76% said they plan to share pay ranges with employees, and 70% with external candidates.
The findings come from a 2025 Pay Transparency Survey by advisory firm WTW and reflect a cultural shift influenced in part by the EU Pay Transparency Directive, despite the UK not being bound by it.
EU law exerts pressure beyond borders
The EU Pay Transparency Directive, which takes effect across member states by 2026, will require employers to publish pay ranges in job adverts, explain pay progression criteria and disclose comparative pay information to staff. It also mandates equal pay audits where gender pay gaps exceed 5%.
While UK businesses are not subject to the Directive, many are already aligning with its principles. The report found that 59% of employers cite regulatory developments, including international ones, as a main reason for increased openness on pay. A further 46% said employee expectations are driving transparency, and 41% pointed to company values and culture.
“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,” said Eva Jesmiatka, Europe lead on pay & career equity at WTW.
“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.”
She added that “[i]n 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”.
Concerns remain over manager readiness
British employers remain cautious about implementation, however. Nearly three-quarters (73%) fear an increase in employee and manager questions, and over half (55%) are concerned about a rise in pay negotiations. Many are also worried about line managers’ ability to explain pay structures with confidence and consistency.
But the UK is ahead of many countries regarding educating senior leaders and boards on pay policy. The survey also noted that 62% of UK firms now use metrics, such as gender pay gap trends and employee engagement data, to track the impact of transparency initiatives.
Gaby Joyner, head of employee experience Europe at WTW, said organisations need to build trust as well as systems. “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,” she said.
Technology still underused in transparency efforts
Despite the emphasis on data, most employers have not yet embraced AI or modern tools to support their transparency goals. Only 13% of UK employers said they plan to use AI to identify pay gaps or communicate pay information. Common concerns include data privacy risks and the difficulty of integrating AI into legacy HR systems.
The lack of investment in tools to support transparency could become a limiting factor, experts say, especially as more organisations consider publishing pay bands externally. Without solid infrastructure, they warn, employers may risk creating confusion or resentment rather than clarity.
Pay transparency now a strategic issue for HR
The survey’s results indicate that UK employers are treating pay transparency less as a compliance issue and more as a strategic priority. With younger workers demanding fairness and openness, and pay-related disputes increasingly playing out in public, many HR teams are moving pre-emptively, even without legal compulsion.
“In order to prepare for becoming more transparent there are some important fundamentals for companies to get right,” said Jesmiatka. These include robust job and rewards structures, and objective HR policies and processes to ensure the delivery of equal pay.”
For now, HR leaders are being advised to assess their internal systems, prepare managers for more open conversations, and plan for a future where transparent pay practices are the norm — not the exception.
