EU Directive 2023/970: first pay-gap reports due June 2027 for employers with 150+ workers

Your payroll data is in 15 systems across 20 countries. The pay-gap report has to hold up in an audit.

The EU Pay Transparency Directive asks you to report comparable pay data for every entity and country you operate in.

A spreadsheet assembled by consultants is hard to defend in an audit. datascalehr turns the payroll data in all your systems into one dataset that understands each country’s rules, and your team connects each country in under an hour.

Your pay-gap report, end to endDue June 2027
Connect your source systemsWorkday, SAP and local payroll engines.
Normalize across countriesCountry-specific pay components sorted into comparable categories.
Audit-proof outputA full lineage trace for every data point.

The problem

Your current path to compliance doesn’t work.

01

Fragmented source systems

Compensation data lives in Workday for some countries, SAP for others, local payroll engines for the rest. No two use the same field names, currencies, or pay component structures.

02

Manual extraction and normalization

Your team exports CSVs from each system, maps the pay components by hand, converts currencies and pastes the result into a master spreadsheet. They repeat this for every country in every pay cycle.

03

Audit exposure

An auditor will ask: how did you derive this number? With a spreadsheet, the answer is “someone typed it.” With datascalehr, every field has a complete lineage trace from source to output.

How datascalehr solves this

Audit-proof pay equity data from the systems you already run, without replacing them or starting a two-year project.

datascalehr’s Context Layer connects to your source systems, normalizes pay data across countries and produces audit-ready output. Your payroll specialists run the process themselves, so you don’t need an IT project or consultants mapping spreadsheets.

01

Connect your source systems

Upload sample files or connect through an API. KMod™ has seen 8,000+ schemas across 180 countries, so it recognizes your data structure and predicts the field mappings for you.

02

Normalize across countries

KMod™ understands pay components that only exist in certain countries, such as French 13th-month pay or Belgian double holiday pay. KMod™ sorts each component into categories you can compare across every country.

03

Produce audit-proof output

Every data point has a full lineage trace: where it came from, how it was transformed, who approved the mapping. The output is formatted for your specific compliance framework.

04

Stay current automatically

When a payroll provider changes its file format or a regulation changes a field requirement, the Context Layer adapts, so you don’t build up a maintenance backlog or face an emergency rebuild.

The Context Layer

Why datascalehr can do this and consultants can’t.

KMod™ is a predictive AI engine trained on 2M+ validated mapping decisions. KMod™ picks each transformation from a known set of valid mappings, which is why its results are deterministic and 100% accurate, with no hallucinations. When your payroll specialist in Munich confirms a mapping at 9:00 AM, a colleague in Vienna benefits from it at 9:01 AM. Every deployment adds to what KMod™ knows.

Production results

Measured in production at the world’s largest payroll providers.

12x

Faster data migration

Europe’s #1 payroll provider cut data migration from 12 hours to 1 hour per country, so implementation partners finish sooner and your payroll goes live earlier.

<1 hour

Per country to deploy

Each country takes less than an hour. Your payroll specialist uploads the data, reviews the mappings KMod™ predicts and confirms them, with no IT project involved.

16x

Faster reconciliation

Europe’s #1 payroll provider cut reconciliation time from 4 hours to 15 minutes per cycle.

89%

Of mapping work automated

KMod™ does 89% of the mapping work automatically, and your payroll specialist confirms and corrects the rest without developers or file specs.

FAQ

Frequently asked questions

When are the first EU Pay Transparency reports due?

Under EU Directive 2023/970, employers with 150 or more workers file the first pay-gap reports by 7 June 2027, covering pay for 2026. Employers with 100 to 149 workers file the first reports by 7 June 2031. Each EU member state sets the final rules in national law, so dates and details can vary by country.

How does datascalehr produce an audit-proof pay-gap report?

datascalehr connects to your source systems, normalizes pay data across countries and keeps a full lineage trace for every data point: where it came from, how it was transformed and who approved the mapping. When an auditor asks how a number was derived, you can show them.

Do we have to replace Workday, SAP or our local payroll engines?

No. datascalehr works with the systems you already run. Your payroll specialists run the process themselves, without an IT project or consultants mapping spreadsheets.

How does datascalehr compare pay components that only exist in some countries?

KMod™ understands country-specific pay components, such as the French 13th-month payment or the Belgian double holiday pay, and sorts each component into categories you can compare across every country.

What happens when a payroll provider changes its file format?

The Context Layer adapts when a provider changes its file format or a regulation changes a field requirement, so you don’t build up a maintenance backlog or face an emergency rebuild.

Your first pay-gap report is due in June 2027, and it covers the pay you run in 2026.

Compare what compliance costs with a traditional integration and with datascalehr. Use the savings calculator at the top of this page, or bring your sample data and we’ll show you results in the meeting.