Only 20% of UK organisations have a documented pay transparency approach in place. A further 31% have one in development, and 49% have nothing written down. On the EU Pay Transparency Directive, a third of the panel has not started preparing at all (lumi panel, n=270 and n=268, August 2026).
Key findings
- Just 20% have a documented pay transparency approach in place; 31% are developing one and 49% have none (n=270).
- On the EU Pay Transparency Directive, 33% have not started and 32% are still assessing; only 2% call themselves compliant (n=268).
- 77% analyse their gender pay gap at least annually — but only 5% do the same for ethnicity (n=270 and n=263).
- 65% publish no pay gap figures beyond statutory gender reporting (n=267).
How many UK organisations have a pay transparency policy?
One in five. Across the panel, 20% have a documented pay transparency approach or policy in place — a written statement of what pay information is shared, with whom, and when. Another 31% have one in development. The remaining 49% have nothing documented (n=270).
The groundwork is further along than the policies. Asked whether they have completed a readiness assessment — an audit of pay structures, data quality and communications — 17% say yes, 69% have one in progress, and only 13% have not started (n=270). Most organisations are mid-diagnosis: they are checking whether their structures would survive daylight before deciding how much daylight to let in.
How prepared are UK employers for the EU Pay Transparency Directive?
The directive is the deadline pushing this up the agenda. It is EU law, not UK law — but member states were due to transpose it into national law by June 2026, and UK organisations with employees in the EU are in scope for those operations. Some choose to apply one standard across the whole group rather than run two. Here is where the panel stands:
Two things stand out. Nearly two thirds of the panel sit at the two earliest stages — 33% have not started and 32% are still assessing — with the transposition deadline already behind us. And the finish line is almost empty: only 2% describe themselves as compliant, with 14% implementing and 19% at the planning stage. Whatever your own position, "everyone else is ready" is not the pressure to worry about; "everyone else is starting" is.
Who analyses their pay gaps — and how often?
Where reporting is a statutory duty, practice follows. Gender pay gap reporting is mandatory for larger UK employers, and 77% of the panel analyse their gender pay gap at least annually; 17% do not, and 6% are introducing it (n=270). Ethnicity is another story. Only 5% run an ethnicity pay gap analysis at least annually, 24% do so partially or inconsistently, and 72% not at all (n=263).
That 72-point gap between gender and ethnicity analysis is the clearest single measure of how far voluntary practice lags mandated practice. Analysis is also the cheap half of the job — it is internal, private and reversible. Publication is where organisations are most cautious, as the next table shows.
What do organisations publish voluntarily?
Beyond statutory gender reporting, most of the panel publishes nothing at all. Asked which pay gaps they disclose voluntarily:
| Published voluntarily | Share of organisations |
|---|---|
| Ethnicity pay gap | 18% |
| Disability pay gap | 13% |
| CEO pay ratio (voluntary) | 8% |
| None beyond statutory gender reporting | 65% |
Organisations could select more than one, so the figures do not sum to 100% (n=267). Two things stand out. 65% publish no voluntary pay gap figures at all — publication remains a minority practice even among organisations that measure. And ethnicity leads the voluntary list at 18%, which is nearly four times the 5% who analyse it rigorously every year: some organisations appear to be publishing on a partial or occasional analysis rather than an annual one.
What should a reward team do with this?
- Write the approach down, even if it is modest. With 49% of organisations holding no documented position, a one-page statement of what you share and why puts you ahead of half the market — and gives managers a script before candidates and regulators force one.
- Sequence assessment before disclosure. The panel's centre of gravity is the 69% mid-assessment. Follow that order: audit structures and data quality first, fix what the audit finds, then decide what to publish. Publishing gaps you cannot explain is worse than publishing late.
- Treat ethnicity analysis as the next gap to close. Only 5% analyse ethnicity pay annually against 77% for gender. If transparency expectations keep broadening, the organisations that already measure will set the pace — and the analysis has to exist before any publication decision does.
About these figures
Figures are medians and quartiles computed across the lumi benchmarking panel — a reference panel of UK organisation profiles modelled from graded published UK survey sources and calibrated metric by metric against lumi's anchor register, growing as member organisations contribute their own data. Each organisation reports one headline figure for its main population; comparisons are medians and percentiles, never averages, and any figure resting on fewer than 5 organisations is suppressed.
Sample sizes are stated per figure and were computed in August 2026. Read the full methodology.