Mandatory Pay Register in Spain: what it is, who it applies to and how to prepare it correctly in accordance with current legislation. At GM Integra RRHH, we explain everything your company needs to know to comply with the law and avoid penalties.
Since the entry into force of Royal Decree 902/2020 on pay equality between women and men, all companies in Spain, regardless of their size, are required to have an up-to-date Pay Register. This measure aims to ensure pay transparency and combat gender-based wage discrimination.
In this article, we explain what the Pay Register is, who is required to have one, what it must include and the consequences of non-compliance.
What Is the Mandatory Pay Register?
The Pay Register is a mandatory document that records the average values of salaries, salary supplements and non-wage benefits of the entire workforce, broken down by gender and distributed by professional groups, categories or positions of equal value.
Its purpose is to determine whether there is a gender pay gap and, where applicable, to assess whether such differences are justified by objective reasons.
Which Companies Are Required to Have a Pay Register?
This obligation applies to all companies, regardless of the number of employees, the sector of activity or their legal form.
This also includes self-employed individuals with employees, companies with a single employee and companies without employee legal representation. There are no size-based exemptions: all companies must have a Pay Register.
Legal Framework for the Pay Register in Spain
The obligation to maintain a Pay Register is mainly set out in Article 28 of the Workers’ Statute and Royal Decree 902/2020 of 13 October on pay equality between women and men.
This legislation develops the principle of equal pay for work of equal value and establishes mechanisms for control and pay transparency.
What Must a Proper Pay Register Include?
The Pay Register must include, at a minimum, base salary, salary supplements and non-wage benefits.
These figures must be expressed as both the arithmetic mean and the median, broken down by gender and grouped according to professional category, professional group, job position or positions of equal value.
The register must include the entire workforce, including senior management, temporary employees and part-time employees.
How Often Must the Pay Register Be Updated?
The Pay Register must be updated at least once a year and whenever relevant salary changes occur within the company.
It is usually prepared using data from the previous financial year or the current calendar year, depending on the company’s internal organisation.
Gender Pay Gap: When Justification Is Required
When the Pay Register reveals a difference of 25% or more between men and women within the same group or position, the company must prepare a justification report explaining the pay gap.
This report must demonstrate that the difference is based on objective and non-discriminatory criteria such as seniority, training, job responsibilities or specific working conditions.
Difference Between the Pay Register and the Pay Audit
It is important not to confuse these two concepts. The Pay Register is mandatory for all companies, while the Pay Audit is mandatory only for companies required to have an Equality Plan.
The pay audit is broader and more detailed, while the Pay Register is the starting point for pay transparency.
Who Can Request Access to the Pay Register?
The Pay Register must be available to employee legal representatives and the Labour Inspectorate.
In companies without employee representation, employees may access the information, always respecting data confidentiality.
Penalties for Failing to Have a Mandatory Pay Register
Failure to comply with this obligation may result in significant financial penalties, ranging from €751 to €7,500 depending on the severity, with higher sanctions if pay discrimination is proven.
In addition to financial consequences, non-compliance may also cause reputational damage to the company.
Conclusion
The mandatory Pay Register is a legal requirement that affects all companies, regardless of their size or sector. Having this document properly prepared not only helps avoid penalties but also demonstrates a company’s commitment to pay equality and transparency.
Do You Need Help Preparing Your Pay Register?
At GM Integra RRHH, we are specialists in Pay Registers, pay equality and labour law compliance. We take care of preparing the Pay Register in accordance with Royal Decree 902/2020, analysing potential pay gaps, justifying pay gaps where necessary and advising you during labour inspections.
Contact GM Integra RRHH and leave the preparation of your Pay Register in expert hands. We help you comply with the law in a safe, clear and hassle-free way.