Is AFAS enough for EU pay transparency compliance?
AFAS supports administration, but organizations still need job architecture, objective job evaluation, and pay gap analysis.
Quick answer
- AFAS is strong in payroll processing but not complete for pay transparency compliance.
- Objective role classification and pay-gap analysis need additional method and tooling.
- Combining AFAS with Payqual creates an audit-ready process.
HomeAFAS and pay transparency: where do you stand?
Payroll administration and the EU directive
AFAS and pay transparency: where do you stand?
Many organisations using AFAS wonder whether their HR system prepares them for the EU Pay Transparency Directive. AFAS provides a strong foundation for payroll administration. At the same time, the directive requires steps that go beyond the scope of an HR system. In this article, we map out what AFAS covers, what the directive additionally requires and how Payqual can help.
Last update: March 20, 2026 · Reading time: 8 minutes
The EU Pay Transparency Directive (2023/970) must be transposed into Dutch law by June 2026. The law affects every employer: from objective job classification and salary indications in vacancies to periodic pay gap reporting and the right to pay information for employees. AFAS has announced support for some of these obligations in their HR module. In addition, there are elements of the directive that require specialised tooling.
This article is intended for HR professionals and executives who use AFAS and want to know how best to prepare for pay transparency legislation. We outline what AFAS offers and what the law additionally requires.
What does AFAS offer?
AFAS has taken steps to support pay transparency. These are the key features.
Table field for job categories
AFAS provides a table field for functions where you can record job categories. This is the basis for grouping functions for statutory reporting.
Integration with LoonLBPH concepts
For compensation components, AFAS aligns with LoonLBPH (payroll tax) concepts, making salary data available in a structured format.
Salary indication for vacancies
AFAS supports displaying salary indications for vacancies, as the directive requires for the recruitment process.
What does the directive additionally require?
The EU Pay Transparency Directive requires more than payroll administration. On two points, additional tooling is needed.
Job evaluation
Objective job classification
AFAS provides a table field for recording job categories. The substantive classification — determining which functions are equivalent — is the employer's responsibility. The law requires this classification to be objective and gender-neutral, based on skills, effort, responsibilities and working conditions. This is the legal crux of the directive and requires a structured methodology.
Risk analysis
Deviation handling and Joint Pay Assessment
AFAS makes salary data available, but doesn't offer tooling to flag unexplained pay gaps. If an employer has a pay gap of 5% or more that cannot be objectively explained, a Joint Pay Assessment is mandatory. This analysis and follow-up process require specialised software.
Side-by-side comparison
How does AFAS compare to Payqual on the key elements of the EU Pay Transparency Directive?
FeatureAFASPayqual
Payroll administration
Salary processing, payslips and integration with payroll tax concepts
Salary indication for vacancies
Displaying salary ranges to applicants, as required by the directive
Recording job categories
~Table field for manual classification; Payqual additionally clusters based on objective criteria
Objective job evaluation
Gender-neutral classification based on skills, effort, responsibilities and working conditions
Risk analysis & >5% alerts
Automatically flagging unexplained pay gaps and initiating Joint Pay Assessment
PIR generation
Generating pay information request responses with comparison data per cluster
System-independent
Importing data from multiple HR systems and analysing across systems
Audit trail for burden of proof
Full documentation of classification method, decisions and corrections
End-to-end compliance workflow
Closed chain from data import via analysis to statutory report
How Payqual complements
Payqual is built to cover the compliance steps that go beyond the scope of HR systems like AFAS.
System-independent
Many organisations work with multiple HR systems due to acquisitions, international entities, or a flexible workforce via a different system. Payqual imports data from any HR system — including AFAS — and analyses across those systems.
PIR generation available now
The right to pay information applies to all employers and requires immediate readiness. Payqual can already generate a Pay Information Request (PIR) based on the ICRA analysis, so you can immediately comply with employee requests.
End-to-end compliance
Where AFAS provides the data, Payqual offers a closed workflow from data import to report, where every step is legally substantiated. Together they form a chain from payroll administration to audit-proof compliance.
Burden of proof covered
Under the new law, the burden of proof lies with the employer. You need not only data, but must also demonstrate how you arrived at your classification, that the method is objective, and that deviations have been explained or corrected. Payqual documents every decision and delivers a complete audit trail.
When is AFAS enough?
AFAS suffices if...
You only need payroll administration, your organisation is small enough to classify functions manually, and you have your own methodology for objective job evaluation. AFAS is a solid HR system for daily payroll processing.
You need Payqual if...
You want to comply with the full EU Pay Transparency Directive: objective job classification, automatic risk detection, PIR generation, reporting and an audit trail. Especially with 100+ employees or multiple HR systems, additional tooling is valuable.
AFAS and Payqual are not mutually exclusive. Payqual imports data from AFAS and adds the compliance layer. Together they cover the full chain from payroll administration to legal compliance.
Frequently asked questions
When do I need an additional solution next to AFAS?
You need extra tooling when you want evidence-based role comparisons and audit-ready reporting.
Can I keep AFAS and still use Payqual?
Yes. Payqual can be used alongside existing HR systems and adds compliance-specific workflows.
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