Pay Transparency and HR Data: Is Your Organisation Ready for 2026?
Pay transparency is no longer just a topic for progressive HR teams or forward-thinking employers. It is quickly becoming a hard compliance requirement, especially for organisations operating across borders. From 2026 onwards, employers with 100 or more employees will be required to demonstrate gender pay gap figures, supported by reliable, structured, and auditable HR data.
For many organisations, this is where the real challenge begins.
While policies, job frameworks, and compensation philosophies often exist on paper, the underlying HR data needed to support pay transparency reporting is frequently fragmented, inconsistent, or incomplete. Payroll systems, HR tools, and local practices are not always aligned, particularly in international environments.
In this article, we focus on the data and reporting side of pay transparency. We explain what data employers will need, why many organisations are not yet ready, how to collect and manage HR data securely, and which tools and processes can help. Finally, we look at how companies can prepare now, before pay transparency becomes a bottleneck to international growth.
What This Article Covers
- What pay transparency means from a data and reporting perspective
- Why HR data readiness is critical for compliance from 2026
- Which HR and payroll data employers will need to report on pay gaps
- Common data challenges in growing and international organisations
- How to collect, structure, and protect sensitive HR data
- Tools and processes that support pay transparency reporting
- Why data-driven HR is essential for future compliance and growth
Pay Transparency: From Principle to Practice
Pay transparency is often discussed in terms of fairness, equality, and trust and rightly so. Transparent pay practices can help close gender pay gaps, support diversity and inclusion, and strengthen employer credibility.
But from a practical standpoint, pay transparency is also about evidence.
From 2026 onwards, organisations with 100+ employees will need to demonstrate pay gap figures, not just state intentions. That means having access to accurate, structured HR data that can be analysed, reported, and explained.
This shift moves pay transparency out of the realm of policy and into the realm of data governance.
Why HR Data Readiness Is the Real Challenge
Many organisations assume that pay transparency reporting is simply a matter of pulling salary figures from payroll. In reality, it is far more complex.
To calculate and explain pay gaps, employers need to combine data from multiple sources, including:
- Payroll systems
- HR information systems (HRIS)
- Job architecture and grading frameworks
- Contract types and working time arrangements
In practice, this data is often:
- Stored in different systems across countries
- Structured inconsistently
- Missing key attributes needed for comparison
- Difficult to extract or reconcile
For international employers, these challenges are multiplied by local differences in payroll, benefits, and employment structures.
What Data Will Employers Need for Pay Transparency Reporting?
While exact reporting requirements may vary, employers should expect to need reliable and comparable HR data across the organisation.
Key data points typically include:
Compensation Data
- Base salary
- Variable pay and bonuses
- Allowances and recurring benefits
This data must be accurate, up to date, and linked to individual employees.
Employee Demographics
- Gender
- Employment status (full-time, part-time)
- Contract type
Without this information, pay gap analysis is not possible.
Job and Role Data
- Job titles and job families
- Levels or grades
- Functional or departmental grouping
Clear job architecture is essential to explain differences in pay.
Working Time and Leave Data
- Full-time equivalent (FTE) percentages
- Absences or leave that may affect earnings
This ensures comparisons are fair and meaningful.
Why Many Organisations Are Not Ready Yet
Despite having payroll and HR systems in place, many organisations struggle to produce reliable pay gap data. Common reasons include:
- Inconsistent job titles across teams or countries
- Salary data stored differently by region
- Manual spreadsheets used alongside HR systems
- Limited reporting capabilities in existing tools
- Lack of ownership over HR data governance
In growing organisations, HR systems often evolve organically. What worked with 20 or 50 employees may no longer work once you approach 100+ employees or expand internationally.
Collecting HR Data Securely and Responsibly
Pay transparency reporting relies on sensitive personal data. Employers must therefore balance transparency with data protection and privacy obligations.
Key considerations include:
- Data Accuracy and Integrity
HR data must be regularly reviewed, validated, and maintained. Inaccurate data can lead to incorrect conclusions and compliance risk.
- Data Security and Access Control
Only authorised individuals should have access to detailed compensation and demographic data. Clear access rights and audit trails are essential.
- Alignment with Data Protection Rules
HR data collection and processing must comply with applicable data protection regulations. Employees should understand how their data is used and for what purpose.
Clear processes and documentation help build trust and reduce risk.
Tools That Support Pay Transparency Reporting
The right tools can make a significant difference in preparing for pay transparency requirements.
Organisations often rely on a combination of:
- A central HRIS for employee and job data
- Payroll systems that integrate with HR platforms
- Reporting and analytics tools for pay gap analysis
However, tools alone are not enough. They must be configured correctly and supported by clear processes and data ownership.
For international employers, system integration across countries is particularly important. Disconnected local solutions make consolidated reporting far more difficult.
Pay Transparency in an International Context
For companies hiring talent abroad, pay transparency adds another layer of complexity.
Different countries have different payroll practices, benefits structures, and employment norms. Aligning data across jurisdictions requires:
- Standardised data definitions
- Clear job and level frameworks
- Consistent reporting logic
This is where international HR support becomes critical. Without a coordinated approach, pay transparency reporting can quickly become fragmented and unreliable.
Why Data-Driven HR Is No Longer Optional
The conclusion is clear: without data-driven HR processes, pay transparency compliance will be extremely difficult, if not impossible.
Pay transparency is not just a reporting exercise. It forces organisations to look closely at how they structure roles, reward employees, and manage HR data.
Companies that invest now in:
- Clean, structured HR data
- Scalable HR and payroll systems
- Clear ownership and governance
will be far better positioned, not just for compliance, but for sustainable international growth.
How Parakar Supports Pay Transparency and HR Data Readiness
At Parakar, we help organisations grow internationally without HR becoming a bottleneck. Pay transparency and HR data readiness are increasingly part of that conversation.
We support companies with:
- Employer of Record (EOR) services, ensuring compliant employment and payroll across countries
- Payroll solutions that provide reliable and structured compensation data
- HR support and advisory, helping align job structures, contracts, and benefits
- International expansion support, including entity setup and immigration
Taking a proactive, data-driven approach now allows HR teams to stay in control, reduce risk, and support international growth with confidence. If you are unsure whether your HR and payroll data is ready for pay transparency requirements, or if you want to explore how to structure your international HR setup more effectively, Parakar is here to help.
Feel free to reach out for a conversation about how we can support your organisation with compliant, scalable, and future-proof HR solutions.
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