Key Points
The 2026 annual wage negotiations will be significantly impacted by new requirements regarding pay transparency and the justification of pay gaps. The success of these negotiations hinges on three key factors: a preliminary audit of pay gaps, appropriate budget allocation, and structured labor-management dialogue. Companies must distinguish between funds allocated for pay equity adjustments and those earmarked for general or individual raises. Rigorous preparation allows for balancing equity, budget control, and internal trust.
Pay transparency is no longer a peripheral issue: it will determine your NAO 2026 and your ability to justify discrepancies. Objective: anticipate, prioritize and explain to avoid the scissor effect between budgetary constraints and imposed catch-ups.
Learn more about Transparency of remuneration
What transparency means in practice
- Reversal of proof: the company must explain a discrepancy, not the other way around.
- Comparison grid: publication of indicators for jobs of the same value; responses to individual requests (min, max, median).
- Scope: we refer to the total package (fixed + variable + peripherals), with the exception of LTIs, depending on practice.
Discover the white paper on NAO and pay transparency
Anticipate the impact of the directive on pay transparency and ensure your next annual collective bargaining negotiations are consistent and successful.
Three movements to launch before negotiation
- flash pre-audit (4 to 6 weeks)
- Map jobs of similar value (criteria: skills, responsibilities, effort, working conditions).
- Measure unexplained gaps (M/F and intra-employment).
- Calculate a correction envelope and scenarios (one-shot vs. smoothing).
- NAO budget sizing
- Separate catch-up envelope and increase policy (general/merit).
- Set arbitration rules: give priority to unjustified deviations, protect critical talent, maintain market competitiveness.
- social dialogue framework
- Inform IRPs of the approach (equity ≠ equality), timetable and methods.
- Share a simple pedagogy: salary bands, market references, variable rules.
Points to watch on the budget side
- Augmentations <2–3 % : risque de déception sans correction d’inéquités.
- Recruiting > internally: provide an alignment envelope when the market is on the rise.
- Rare populations: pool analyses on relevant groupings to avoid false statistical signals.
Decision-making tools
- Salary bands based on jobs of the same value (min-mid-max).
- Homogeneous variable rules for each role family (e.g. managers: 10% target; sales: explainable mechanics).
- NAO dashboard: market coverage rate, % out-of-band, cost of correction, M/F impacts.
Read the article: Transparency Directive 2026: the seven priority areas
Managerial communication
- Remuneration management training (not technical training): explaining, saying no, proposing alternatives (variable, mobility, development).
- Tool answers to sensitive questions: "Why 36 and not 42 k€?", "Why am I below the median?
Read the article: Training managers in pay transparency: a decisive lever for the company
Typical action plan
- T-10/12 weeks: pre-audit & mapping.
- T-8 weeks: budget scenarios & red lines.
- T-6 weeks: IRP loop, FAQ, manager support.
- T-0: structured negotiation, priority given to justified catch-ups.
MCR Rewards, a compensation strategy consultancy, helps companies prepare for their NAO 2026 and comply with the European directive on compensation transparency. Thanks to a structured approach combining pre-audit of discrepancies, budget calibration and social dialogue tools, MCR Rewards helps HR departments reconcile fairness, performance and financial sustainability. Our expertise enables us to transform regulatory constraints into internal confidence-building levers, by providing managers and social partners with a clear, objective and controlled vision of pay policy.
Pay transparency: a legal obligation, a strategic lever
Anticipate the requirements of EU Directive 2023/970 and turn pay transparency into a driver of motivation, fairness and employer attractiveness.
Get a head start: audit, training, personalized support... let's work together to build an approach aligned with your challenges.
How can pay transparency be incorporated into the 2026 National Wage Negotiations?
Implementing pay transparency begins with analyzing pay gaps and defining decision-making criteria. Companies must be able to explain their pay decisions and justify any differences that are observed.
How to prepare for a pre-audit ahead of the annual general meeting?
The pre-audit involves mapping jobs of equal value, analyzing pay gaps, and identifying situations that require correction. This step helps anticipate risks and develop realistic budget scenarios.
What role do managers play in annual general meetings?
Managers play a key role in explaining pay decisions and answering questions from their teams. They need to be prepared to address issues related to pay equity, raises, and career advancement opportunities.
How can we achieve the 2026 National Budget Objectives without undermining economic performance?
The key lies in striking a balance between pay equity, budget constraints, and strategic objectives. MCR Rewards helps companies prepare their annual salary negotiations to ensure fair decisions, strengthen labor-management dialogue, and effectively address pay transparency issues.
