The payroll record has been mandatory in Spain since April 14, 2021, but the Labor Inspectorate did not begin imposing substantial penalties until the following years. In 2026, the situation has changed: The Inspectorate is already imposing penalties on small businesses, including self-employed individuals with just one employee, And the European Pay Transparency Directive (EU 2023/970), which was to be transposed by June 7, 2026, will further tighten the requirements in the coming months.
Failing to keep your payroll records up to date is no longer just a theoretical risk. It is a serious violation with real consequences.
What is the payroll record, and which companies are required to maintain one?
The compensation record is a document that lists the average compensation amounts for the workforce broken down by sex, with the aim of ensuring pay transparency and identifying potential pay gaps between women and men performing work of equal value. Its mandatory nature is established in Article 28 of the Workers’ Statute and further detailed in Royal Decree 902/2020 on equal pay.
All companies with workers in Spain, regardless of size. It doesn't matter whether the company has 2 employees or 200: if it has any employees on staff, registration is mandatory. The relevant size distinction applies to companies with more than 50 employees, which must also have an Equality Plan that includes a pay audit.
What information must be included in the compensation record?
The record must include, at a minimum, the base salary, salary supplements, and non-salary payments. The data must be broken down by gender and grouped by jobs of equal value. Both the average and the median for each compensation component must be calculated. The document must include at least the following information: professional group or category, level or position, gender, number of people in each group, average base salary, average allowances, and average total compensation.
The record must be updated at least once a year, based on the previous year's compensation. The 2026 compensation record must reflect the compensation received during 2025.
If the global gap exceeds 5%: Directive (EU) 2023/970 requires that a joint compensation review be initiated with employee representatives.
Explanation of differences (if applicable): [Description of the objective reasons justifying the differences identified]
Compensation Registry vs. Compensation Audit vs. Equality Plan: Differences
The pay scale It is mandatory for all companies: it reports average wage figures broken down by gender. The compensation audit It is mandatory only for companies with more than 50 employees that have Equality Plan: It involves a more in-depth analysis of the compensation structure, identifies the causes of potential gaps, and proposes corrective measures. The Equality Plan is mandatory for companies with more than 50 employees and must be negotiated with employee representatives, registered with REGCON, and reviewed periodically.
These are three complementary tools that operate at different levels of depth and complexity.
How do you prepare the payroll record step by step?
The process begins by compiling compensation data for the entire workforce from payroll records and the ERP system: base salary, all allowances (seniority, hazardous duty, performance-based, language, availability), non-salary benefits (per diems, transportation allowances), work schedule, and length of service. Next, positions are grouped by work of equal value, which are those that require the same knowledge, responsibilities, effort, and working conditions regardless of the gender of the person holding the position. For each group, the mean and median of each pay component are calculated, disaggregated by gender. If the difference between the average wages of men and women in the same group exceeds 25%, the company must include in the record a justification stating that this difference is due to objective causes unrelated to gender.
What penalties apply if my company doesn't have it?
The absence of a compensation record is considered a serious violation, punishable by fines ranging from 626 to 6,250 euros, according to the source consulted. If the Inspectorate also detects gender-based pay discrimination, the violation becomes very serious, with fines of up to 225,018 euros. In addition, there are ancillary consequences: loss of public aid and subsidies, as well as benefits derived from employment programs. The European Pay Transparency Directive will expand these requirements: companies with more than 100 employees must publish information on pay gaps, and when the gap exceeds 5% without objective justification, the company must initiate a joint pay assessment with employee representatives.
How to Use Training to Support Pay Equity in Your Company
The pay report is not just a document: it is the starting point for a pay transparency policy that requires people with specific expertise in equality, pay structures, and data analysis. The Ministry of Equality offers the IR! tool as a resource, but its proper implementation requires training.
