EU Salary Transparency Directive

The European Union decided in 2023 on salary transparency regulation, which is to be in effect by 7 of June 2026. https://eur-lex.europa.eu/eli/dir/2023/970/oj/eng

The goal is equal pay or work of equal value and increased transparency in salary setting. All employers are required to participate, but companies with more than 100 employees will have more extensive reporting.

 • Increased transparency in salary: employers may not ask job seekers about their current or previous salary. The starting salary for the new position must be stated already in the recruitment process.

• Extended reporting requirements: Companies with 100 or more employees must document salary surveys in writing, analyze the effects of parental leave and collaborate on criteria for job evaluation. Gender distribution must be reported for equal work. Labor organizations will have more rights to look after that the directive is implemented.

• All reporting must be done to the Discrimination Ombudsman DO (for companies with 100 or more employees). The wage difference of more than 5% must be justified + plan how to equalize.

• Sanctions and fees are introduced to ensure compliance with the directive.