As the UK marks Savings Week, the spotlight turns once again to financial wellbeing, transparency and fairness in the workplace.

New research from SD Worx reveals that while UK employers are ahead of their European counterparts in communicating openly about pay, fewer than half of employees feel they are getting the full picture.

Transparency pays but gaps remain

Just 46.6% of UK employees believe their organisation is sufficiently transparent about pay policies, packages, increases and gaps. This compares to just 30.3% of workers across Europe. Employers, however, are more confident: 61% of UK businesses say they are actively investing in greater pay transparency, ahead of 52.3% of European firms.

With compensation transparency linked to closing pay gaps, boosting morale, retaining staff and strengthening employer brand, the UK’s progress stands out – particularly as EU countries race to comply with the EU Pay Transparency Directive, which comes into force in June 2026.

Inequalities in focus

Despite this relative progress, the research highlights ongoing challenges:

41.3% of UK employers admit a gender pay gap exists, in line with peers in Norway (50%), Ireland (44%) and Sweden (43%).

47.4% of UK employees believe their organisation is actively working to close these gaps, compared to 39.8% in Europe.

On broader efforts to tackle inequality, the UK again leads with 41% of employees seeing progress, versus just 29% across Europe.

The findings are drawn from an international SD Worx survey of 5,625 HR managers and 16,000 employees across 16 European countries.

Employee expectations vs. employer confidence

The research also reveals a gap between perception and reality when it comes to fair pay. While 64% of European employers believe they pay fairly, nearly half of employees (49%) say they should earn more for the work they do.

This sentiment is strongest in Slovenia (60%), Serbia (59%) and Croatia (58%), but is also significant in the UK, where 42.8% of employees feel underpaid.

Meanwhile, just 38% of European workers believe their pay is competitive for their sector, compared to 48.3% in the UK.

“A total reward statement can help”

Commenting on the findings, Laura Miller, UK People Country Lead at SD Worx, said:

“From June next year, companies within the European Union will have to be transparent about their wages. Reporting must be both internal and external, with employers required to make clear the criteria used for salary and career development.

In an international labour market where the war for talent crosses borders, and with clear links between morale and remuneration, perhaps others can learn from the UK.

Our market is leading the way, perhaps due to our history of equal pay legislation, employee engagement and access to salary information through job ads, reviews and LinkedIn. However, there’s still work to do.”

Miller added that businesses should focus not only on pay levels but also on how they communicate the total package:

“Times are uncertain for many businesses, so it is encouraging that British workers feel their packages are still competitive. Transparency about the full remuneration package, including benefits, is important in the perception of a fair wage. A total reward statement can help with this. Companies would also do well to review their entire wage policy – through a pay equity audit – as the EU directive deadline approaches and scrutiny intensifies here in the UK.”