Benefits in job postings after the Pay Transparency Directive: what to include and what to avoid?
Years of experience in implementing cafeteria systems and building Total Rewards strategies reveal a clear pattern: HR departments spend hundreds of hours fine-tuning benefit packages, only to reduce them to tired clichés like "fruit Thursdays" and a "young, dynamic team" in job postings. In today's market, this approach not only damages your brand image but, in light of new regulations, directly exposes the organization to compliance risks and the loss of top-tier candidates.
The EU Directive 2023/970 of May 10, 2023, on strengthening the application of the principle of equal pay (the Pay Transparency Directive) is permanently changing the standards for creating job offers. The regulations being implemented into national legal systems are transforming the anatomy of the job posting. While the requirement to disclose salary ranges is a basic regulatory obligation, a equally critical challenge is the precise presentation of employee benefits, which, according to EU standards, are an integral part of the total compensation package.
How can you navigate this transformation without suffering reputational or legal damage? How can you turn legal requirements into a competitive advantage in Employer Branding? Here is a comprehensive step-by-step guide.
How does Directive 2023/970 redefine compensation in recruitment?
Directive 2023/970 defines compensation not just as base salary, but as all other benefits in cash or in kind, granted directly or indirectly by the employer. This mandates the inclusion of the value of benefits in the overall Total Remuneration calculation as early as the recruitment stage.
For years, Polish job postings were dominated by a split between salary and "extras." Benefits were treated as a nice bonus used to manipulate the perceived attractiveness of an offer without disclosing specific figures. Article 3 of EU Directive 2023/970 puts an end to this by introducing a very broad definition of "compensation."
Under these regulations, compensation includes:
- The ordinary basic or minimum wage or salary.
- Any other benefits in cash or in kind (e.g., medical care, gym memberships, company cars for private use, education subsidies, pension plans).
Why is this shift critical for recruiters?
If a candidate only sees the base salary in a job posting, they don't have a full picture of the organization's actual investment in them. Conversely, an employer offering an extensive package of non-wage benefits (worth, for example, 1,500 PLN per month) misses the chance to attract talent by listing only the B2B base rate or the gross salary for an employment contract.
Read more about the legal aspects of preparing your organization for the new regulations in our guide Pay transparency: how to prepare your company for new regulations and build trust.
The role of the Total Rewards Statement (TRS) in the new job posting model
A Total Rewards Statement (TRS) in recruitment communication is a transparent summary of base salary and the financial value of all non-wage benefits, allowing candidates to immediately assess the full value of an employment offer.
When pay transparency becomes the standard, simply stating a base salary range is no longer enough to make a company stand out. If three competing firms offer a Senior Developer a base salary of 18,000 – 22,000 PLN gross, the details are what decide who wins the war for talent. This is where the concept of Total Rewards Statement (TRS), integrated into the job posting, comes into play.
Real-world example: The case of the tech company TechGrid
TechGrid had been looking for a Senior Product Manager for 4 months. The job posting included a salary range of 15,000 – 18,000 PLN gross and a standard bulleted list: "gym membership, private medical care, training budget." The response was minimal.
After implementing a TRS-based approach in the job description, the structure of the compensation presentation was changed:
- Base salary: 15,000 – 18,000 PLN gross / month
- Total Rewards Statement (TRS) value: approx. 2,400 PLN / month, consisting of:
- Extended medical package with dental care (market value: 450 PLN)
- Co-financing for a flexible cafeteria budget via Nais (value: 500 PLN)
- Development and certification budget (average of 1,000 PLN per month, calculated annually)
- Hybrid work subscription / ergonomic desk allowance (450 PLN)
- Total annual benefits package (Total Remuneration): from 208,800 PLN to 244,800 PLN.
The result? The number of applications meeting formal requirements increased by 140% within the first three weeks. During interviews, candidates explicitly stated that the transparency in the benefits breakdown was the deciding factor in submitting their CV.
To learn more about implementing such a module for your team, check out the Total Rewards Statement (TRS) by Nais.
What exactly to include in job postings after the directive: A transparent HR checklist
New job postings must include the exact base salary range, categorized benefits with details on their availability (for whom and from when), and the estimated financial or percentage value of the employer's contribution.
Creating a modern job posting requires moving away from slogans toward concrete data. Here are 5 elements you must include in the "Compensation and Benefits" section:
- Base salary range with contract type specification: Clearly indicate whether the stated amount refers to an Employment Contract (gross) or a B2B contract (net + VAT).
- Criteria for bonuses and variable components: If the organization has a bonus system, the directive requires clarity regarding the rules for its allocation.
- Catalog of non-wage benefits categorized by type: Instead of a chaotic list, use a semantic breakdown (Health, Education, Flexibility, Well-being).
- Value or level of benefit co-financing: Information on whether a given benefit is 100% covered by the employer or provided as an employee co-payment (e.g., in a cafeteria system).
- Time and conditional availability: Does private insurance apply from the first day of the probationary period? Is the training budget available after 3 months?
Recommended toolkit to support the process:
- Benefit Management Platforms: Cafeteria systems that allow employees to independently calculate and allocate their budget.
- ATS tools with TRS integration: Recruitment systems that allow for the automatic generation of a package summary on the job posting card.
- Social Benefit Fund (ZFŚS) subsidy calculators: Helping to precisely determine thresholds for holiday subsidies or holiday bonuses.
How to calculate the value of benefits for job postings without falling into a legal trap?
Calculating the value of benefits involves stating the actual cost incurred by the employer or the market value of the benefit, while clearly separating the guaranteed salary from conditional or optional perks.
One of the biggest concerns for legal and HR departments is the question: Could stating the value of a benefit as a monthly amount be interpreted as a claim for a cash equivalent?
No, provided that the legal disclaimers and valuation methodology are constructed correctly. We discuss the precise relationship between benefits and the directive in depth in our article Benefits and pay transparency: are non-wage benefits part of compensation?.
Rules for safely calculating benefits:
- Define your terms: Always specify that the valuation of benefits represents the "estimated market value of the package" or the "average employer cost per full-time equivalent."
- Do not aggregate blindly: Do not combine base salary and optional benefits into a single guaranteed total. Instead of writing "We guarantee 12,000 PLN," write: "Base salary: 10,000 PLN + Benefits package valued at 2,000 PLN."
- Account for flexibility (Cafeteria plans): If you provide employees with a points budget to spend in a cafeteria system (e.g., 400 points = 400 PLN per month), state the specific budget amount rather than listing individual products that the employee may or may not choose to use.
The Seven Deadly Sins: What to avoid when describing benefits in 2026 and beyond?
When describing benefits, avoid presenting standard employer obligations under the Labor Code as unique perks, using vague buzzwords, or hiding the fact that employees must co-pay for benefits.
To ensure your employer brand maintains its credibility, eliminate outdated and misleading recruitment practices from your job postings.
A list of the most common recruitment mistakes:
- Presenting legal requirements as benefits:
- The mistake: "We offer: stable employment with a contract of employment, timely salary payments, and necessary work tools (laptop, phone)."
- Why it's a mistake: Timely pay and the equipment needed to do your job are legal requirements, not privileges. Listing them only makes candidates roll their eyes.
- Hiding employee costs:
- The mistake: "Gym membership and medical care for you and your family!"
- Why it's a mistake: If the employer actually only covers 50% of the gym membership cost and the employee has to pay 100% out-of-pocket for their family, the candidate will feel misled once they reach the contract signing stage.
- Failing to distinguish between types of employment:
- Error: Offering paid leave in a B2B contract in a way that implies an employment relationship.
- Why this is an error: You must use terminology precisely, e.g., "paid service break," to avoid the risk of the contract being reclassified by the National Labour Inspectorate.
- Vague buzzwords unsupported by facts:
- Error: "Internal training, friendly atmosphere, flexible hours."
- How to fix it: Replace generalities with facts: "External course funding up to 3,000 PLN/year, work with core hours from 10:00 AM to 2:00 PM."
The impact of benefits transparency on Employer Branding and Candidate Experience
Clearly presenting non-wage benefits builds immediate trust in the employer brand, filtering out mismatched candidates and increasing the Offer Acceptance Rate.
Modern Employer Branding is not about creating colorful advertising campaigns, but about the authenticity of the candidate's touchpoints with the brand. A job posting is the first and most important test of a company's credibility.
When a candidate sees a clear Total Rewards structure, they perceive a mature organization that treats employees as business partners. Pay transparency regulations are radically changing this area – you can find a detailed analysis of this phenomenon in the article How pay transparency is changing Employer Branding and Candidate Experience.
How to audit your job postings in 4 steps?
- Step 1: Review your current job posting templates. Weed out all generic phrases and eliminate any legally questionable language.
- Step 2: Financial valuation of role-based packages. Assign a realistic cost and market value to the benefits offered for each job group.
- Step 3: Standardize the TRS module in your offers. Create a clear tabular or visual template for every job posting.
- Step 4: Train your Talent Acquisition team. Ensure recruiters can explain the components of the Total Rewards package during the initial phone screen.
Frequently Asked Questions (FAQ)
This section addresses the most common questions from HR managers and recruitment specialists regarding the implementation of pay transparency in job postings following the introduction of EU Directive 2023/970.
Does Directive 2023/970 require stating the exact salary, or is a salary range sufficient?
The Directive requires the starting salary or a salary range to be provided in the job posting or before the interview. This range must be based on objective, gender-neutral criteria and reflect the organization's actual pay potential.
Do I need to value each benefit separately in the job posting?
There is no legal requirement to value every individual benefit down to the last cent. However, from a recruitment perspective and as a matter of Total Rewards best practice, stating the total value of the non-wage package (e.g., "Benefits package worth approx. 1,200 PLN/month") significantly increases the attractiveness of the offer and speeds up the recruitment process.
What should you do if benefits depend on seniority or performance?
In the job posting, you should clearly distinguish between benefits available from the first day of work and conditional benefits. It is worth using a statement such as: "After the probationary period, you are entitled to an additional training budget of X."
How should flexible (cafeteria) benefits be handled in the context of transparency?
Cafeteria benefits are the easiest form of compensation to present. You simply state the amount or number of points the employee receives each month to use at their own discretion within the system (e.g., "500 PLN per month to spend on the Nais cafeteria platform for healthcare, sports, culture, or travel").
Can a candidate demand a cash equivalent instead of a benefit listed in the job posting?
No, unless the company's internal remuneration policy provides for such an option. Stating the value of a benefit in a job posting is for informational purposes and demonstrates the employer's total investment in the position (Total Rewards), rather than creating a claim to exchange medical insurance for cash.
Key takeaways:
- Benefits are part of remuneration: Directive 2023/970 explicitly includes non-wage benefits in the total Total Remunerationpackage.
- No more vague promises: Buzzwords like "young team" or "fruit Thursdays" are giving way to precise data, specific monetary values, and clear rules for benefit eligibility.
- TRS as a competitive advantage: Presenting a full benefits package in a Total Rewards Statement format increases the number of qualified applications and shortens the recruitment process.
- Transparency builds trust: Clear financial communication at the job posting stage reduces new hire turnover and strengthens the candidate experience.
- Authenticity above all: Avoid listing statutory requirements as perks and clearly specify the company's contribution level for benefits.
