Pay Transparency Directive: a Structural Opportunity for Mums

The clock is ticking. EU Member States must transpose the Pay Transparency Directive into national law by the 7th of June 2026. While much of the public conversation focuses on compliance, reporting, and legal risk, this directive represents something far more profound: a structural opportunity to improve organisational culture, and as a result, boost long-term growth, innovation and profitability.

Today, the gender pay gap in Europe still hovers at around 13%, while the pensions gap reaches a staggering 30%. Behind these numbers lies a persistent and often overlooked reality: women, and especially mothers, continue to face systemic pay inequities. (1)

The so-called motherhood penalty is measurable, widespread, and deeply embedded in workplace structures. Pay transparency is a critical first step toward exposing and addressing these inequalities.

What is concretely changing?

The directive introduces several key measures that will fundamentally alter how organisations approach pay:

• Salary transparency in job postings - ensuring candidates know pay ranges upfront

• A ban on asking for pay history - preventing past inequities from compounding

• Mandatory pay reporting for companies with 100+ employees

• Expanded rights for employees - including access to pay level information across all company sizes

• Coverage of contracted workers -  extending protections beyond traditional employment

• Legal recognition of intersectionality - acknowledging that overlapping identities can intensify discrimination

• Enforcement mechanisms - including fines and potential exclusion from public contracts for non-compliance (2)

Importantly, implementation is already underway. The French-speaking Community of Belgium has taken early steps, with partial rules in force since January 2025. Other countries, such as Finland and Cyprus, are drafting legislation with significant penalties. Finland has proposed fines ranging from €5,000 to €80,000. In Flanders, discussions have even included fines specifically targeting companies that continue to pay women less. (3)

The signal is clear: transparency is no longer optional.

Why is this directive so relevant to mums? 

Motherhood too often triggers a cascade of disadvantages: slowed career progression, reduced earnings, and long-term financial impacts that extend into retirement. Yet, these outcomes are largely ignored by most companies. This directive is a good first step to change that reality. The gender pay and pensions gaps are the result of long-standing norms, assumptions, and organisational practices that have gone largely unchallenged. (4)

Pay transparency is often  framed as a technical or administrative requirement. In reality, it represents a deep cultural shift. Some Member States are already exploring family-related reporting, including tracking maternity, paternity, and parental leave alongside pay outcomes. (5)

This moves the focus from what the gap is to why it exists: how does pay progression differ for mothers vs. non-mothers; what happens to compensation after parental leave, and whether flexible work arrangements impact long-term earnings.

Collecting and analysing data to answer these questions will help identify where the motherhood penalty is created and, more importantly, how it can be dismantled.

This is a concrete opportunity to:

• Build cultures grounded in transparency and trust

• Strengthen psychological safety, where employees feel empowered to question inequities

• Reassess promotion and compensation frameworks

• Design better return-to-work support for mothers

• Ensure equal opportunities are not just stated, but measurable and real

At its core, the Pay Transparency Directive is about visibility. And visibility changes behaviour.

Rather than viewing this directive as a compliance burden, forward-looking companies should treat it as a catalyst for positive change—an opportunity to reshape and improve organisational culture that supports sustained growth, innovation and profitability.

For mothers, this could be transformative.

Not because transparency alone will eliminate the motherhood penalty—but because it will create the conditions for organisations to finally see it, measure it, and act on it.

Author: Agata Spissu

References: 

1. Gender pay gap: Council adopts new rules on pay transparency - Consilium

2. Pay transparency in the EU - Consilium

3. Directive (EU) 2023/970; Fédération Wallonie-Bruxelles (2024) decree on pay transparency (effective January 2025); Finnish Ministry of Social Affairs and Health draft legislation (2024); Cyprus Ministry of Labour consultation documents (2024); Flemish Government policy discussions on enforcement measures (2024–2025).

4. Op-ed: The cost of motherhood and the gender pay gap | UN Women – Headquarters

5. EU Pay Transparency Directive | Deloitte Belgium

6. Pay transparency is a cultural shift, not a reporting exercise

Rethinking Motherhood

Lunalab Matrescence Series @The Nine, Brussels

Becoming a mother is a profound personal transition — and a deeply professional one too.

Returning to work after having a child isn’t just about logistics or time management. It’s a full identity shift that reshapes how we see ourselves, how we lead, and what kind of impact we want to make.

This transition has a name: matrescence — a transformative life stage, just like adolescence, which still remains largely overlooked in society and profoundly misunderstood in the professional space. Too often, it’s thought of and treated as a disruption — a detour in a woman’s career, a pause, or even a setback — and rarely recognised for what it truly can be: a powerful leadership accelerator.

Matrescence makes women more self-aware, more resilient, and more purpose-driven. It deepens empathy, sharpens strategic thinking, strengthens relational intelligence, and hones prioritisation. These are not “soft” skills — they are strategic assets. When acknowledged and nurtured, they translate directly into stronger, more human-centred leadership.

A growing body of research backs this up. Studies show that mothers often return to work with enhanced emotional intelligence, time efficiency, and creativity — all highly valued leadership traits (Morgenroth et al., 2019; Torres et al., 2024). Mothers in leadership positions are also more likely to support employee wellbeing and foster inclusive workplace cultures (McKinsey & LeanIn.org, 2022).

Yet workplaces continue to lose highly skilled women after they become mothers. Nearly 43% of highly qualified women step back or leave their careers post-maternity — not because of diminished ambition, but due to unsupportive systems and internalised narratives that their ambition must wait (Torres et al., 2024).

This is a structural loss. Organisations that fail to support this transition miss out on retaining and promoting some of their most capable, values-driven leaders. The business case is clear: according to McKinsey’s Diversity Wins report, companies in the top quartile for gender diversity on executive teams are 25% more likely to outperform their peers financially (McKinsey, 2020).

So what if employers — and public institutions — supported women in ways that helped them apply the very skills they cultivate through motherhood, to the benefit of their teams, organisations, and society?

While flexible work policies, parental leave for fathers, and workplace cultures that normalise caregiving are essential, they are not enough. Effective interventions must go beyond these and focus on reintegration — helping mothers return to work as evolved leaders (Bowyer et al., 2022; Torres et al., 2024).

Research also highlights the importance of individual and peer group support during this transition. These services can help women navigate internalised stigma, societal expectations, and the emotional complexity of balancing motherhood and career. Beyond fostering wellbeing, they also play a critical role in boosting long-term talent retention and leadership development ((Franzoi et al., 2024;Torres et al., 2024).

Supporting mothers isn’t a perk. It’s a smart, strategic investment — and a cultural shift whose time has come. If we want more inclusive, resilient workplaces, we must stop asking mothers how they’ll “balance it all” — and start asking companies and institutions how they’ll harness the leadership already growing in their workforce.

We created Lunalab with this mission. Based in Brussels, Lunalab supports women through matrescence with a leadership programme that helps them reconnect with their values, strengthen their renewed identity, and bring enhanced clarity, creativity, and leadership back into their workplaces. We partner with organisations that want to retain and elevate their maternal talent — not just accommodate it. We invite companies, organisations, and institutions — in Brussels and beyond — to lead this shift with us.

Author: Roberta Nicotra, Co-Founder of Lunalab Community

References

1. Torres, C. J. C., Barbosa‑Silva, L., Oliveira‑Silva, L. C., Miziara, O. P. P., Guahy, U. C. R., Fisher, A. N., & Ryan, M. K. (2024) The Impact of Motherhood on Women’s Career Progression: A Scoping Review of Evidence-Based Interventions. Behavioral Sciences, 14(4), 275. 

2. Hewlett, S. A., et al. (2005) Off‑Ramps and On‑Ramps: Keeping Talented Women on the Road to Success. Harvard Business Review. Link 

3. McKinsey & Company(2020) Diversity Wins: How Inclusion Matters.

4. McKinsey & LeanIn.org (2022)Women in the Workplace Report.

5. Morgenroth, T., Ryan, M. K., & Peters, K (2019) The Motivational Theory of Role Modeling: How Role Models Influence Role Aspirants’ Goals. Review of General Psychology.

6. Franzoi, I. G., Sauta, M. D., De Luca, A., & Granieri, A. (2024) Returning to work after maternity leave: a systematic literature review. Archives of Women’s Mental Health, 27(5), 737‑749.

Workplaces Need Feminine Energy

Why Women's Leadership Drives Growth, Innovation, and Profit

The current backlash against diversity, equity, and inclusion (DEI) policies, along with moves by companies to dismiss these initiatives, is stifling creativity, economic growth, and missing out on the immense potential of diverse leadership.

The so-called "soft skills" — empathy, trust, and collaborative leadership — are the power skills of the future. These are forms of feminine energy, a attributes present in everyone, regardless of gender. Unfortunately, it often remains dormant, especially in male-dominated environments. Empowering women is crucial to unlocking this untapped potential.

The Data Speaks Loud and Clear:

• Higher Profits: Companies with the highest proportion of women in executive positions outperform their competitors by 47% in return on equity. Businesses in the top quartile for gender diversity are 27% more likely to surpass their industry's average profitability. These are not predictions — they are the findings of a decade-long McKinsey study.

• Economic Growth: According to a recent Bruegel article, women and men contribute complementary skills that enhance decision-making, innovation, and risk management. Boosting female workforce participation could increase GDP by up to 25% in advanced economies. These findings, moreover, are in line with the microeconomic evidence.

• A Competitive Advantage: Data from the European Institute for Gender Equality shows a stark divide between northern European nations progressing toward leadership diversity and others stuck in single-digit female board representation. Failure to adapt is a competitive disadvantage in a fast-evolving global economy.

This isn't about swapping one type of leadership energy for another — it's about embracing balance because the evidence overwhelmingly supports diverse leadership as the better performer.

Despite the politicized language surrounding DEI initiatives, workplace experts suggest that most companies are striving to find a middle ground rather than abandoning these programs altogether. Instead of dismantling DEI efforts, organizations should focus on practices that effectively elevate women to leadership roles. This includes investing in women's personal and professional development, addressing gender biases in hiring and promotion, and fostering mentorship and leadership opportunities.

By adopting these actionable strategies, companies can unlock the immense potential of diverse leadership, fuel innovation, and secure a competitive edge in the evolving global economy.

Author: Agata Spissu, Co-founder of LunaLab

Refences:

• McKinsey & Company: Diversity Wins: How Inclusion Matters (2020). Link

• McKinsey & Company: Women in Workplace report (2024) Link

• Bruegel: Jonathan D. Ostry, The Economic Case for Workplace Gender Diversity (2023). Link

• European Institute for Gender Equality (EIGE): Positions held by women in senior management positions (2024) Link 

• The Financial Times: The DEI backlash: employers ‘reframing not retreating’ (2024) Link