Compensation Benefits
48% of APAC employers unready for pay transparency laws: report
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Asia-Pacific tops the list of regions that are least prepared for pay transparency
Despite tightening regulatory pressure and evolving employee expectations, nearly half of organisations in the Asia Pacific (APAC) region are unprepared for pay transparency laws, according to a recent study from Aon.
In its 2025 Global Pay Transparency Study, which involved surveying more than 1,400 organisations in over 40 countries, the APAC region is the least prepared for pay transparency regulations at 48%, followed by Latin America at 40%, Europe, the Middle East, and Africa at 26%, and North America at 16%. Overall, only 19% of organisations surveyed considered themselves ready for pay transparency.
Aon's Chief Administrative Officer, Lisa Stevens, said the report highlights a significant gap among companies with pay transparency directives. "organisations that fail to act face risks not only in compliance, but in their ability to attract, retain, and engage talent. Pay transparency is no longer a buzzword. It's a baseline expectation from employees and a regulatory imperative across an increasing number of jurisdictions," she said in a statement.
While many companies claim pay transparency as important to their business, 40% point to regulatory compliance as the main driver for transparency efforts. The report also reflected a more cautious approach to compliance, with 60% of companies enacting transparency policies based on locations where they are legally required.
Despite these concerns, the report also noted that 71% of organisations surveyed say their pay transparency readiness has improved since last year.With the EU Pay Transparency Directive slated to take effect in 2026, Aon advises employers to shift from tactical compliance to a more strategic approach.
"Pay transparency is here to stay," said Kelly Voss, head of rewards and career advisory for North America at Aon. "organisations that treat it as a business imperative, not just a legal hurdle, will be better positioned to build engaged, resilient workforces."
The push for pay transparency is growing globally, with the US and the EU implementing laws requiring employers to disclose pay ranges. APAC countries like Japan and Australia have also followed suit with regulations tackling mandatory reporting and pay disclosure as the benefits of pay transparency for attracting and retaining talent are becoming increasingly clear
However, implementation challenges remain prevalent, as do fears of employee dissatisfaction and administrative burdens related to compliance. Discussions of salaries are also still considered taboo in Asian workplaces.
"Employees are navigating economic uncertainty and growing concerns about fairness," said Voss. "Clear, consistent communication and manager training are critical to transparency efforts. Without them, even well-intentioned strategies can fall short."
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