Salary Transparency Directive: What It Is, Obligations, and How Companies Can Prepare

The European Union’s Salary Transparency Directive aims to ensure pay equality among employees and provide greater visibility of salaries within organizations. It is set to come into effect on June 7, 2026, and Member States have until that date to incorporate its provisions into national legislation.

Below, we explain everything companies and HR professionals need to know about this regulation, its obligations, and how to prepare.

 

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Objectives of the Salary Transparency Directive

The main goals of the Directive are:

• Eliminate the gender pay gap, ensuring that employees performing work of equal value receive the same compensation.
• Increase transparency in hiring and salary management processes by providing employees and candidates with clear and comparable information about salary ranges and progression criteria.
• Guarantee employee rights, including the right to request salary information and the prohibition of confidentiality clauses that prevent sharing information about their pay.

Key Obligations for Companies

Salary Information in Job Offers

Companies must include salary ranges in their job postings and communicate objective criteria for salary setting and progression before interviews. This allows candidates to negotiate from a more balanced position.

Exception: Companies with fewer than 50 employees may be exempt from providing certain progression criteria.

Evaluation of Work of Equal Value

Systems must be implemented to compare different roles of equivalent value. These analyses must be gender-neutral and consider skills, responsibility, effort, and working conditions.

Pay Gap Reports

Depending on company size, reports must be published at the following frequency:

• 250 employees or more: annually.
• 150–249 employees: every 3 years.
• 100–149 employees: every 3 years starting in 2031.
• Fewer than 100 employees: not mandatory but allowed voluntarily.

Reports must include data on average and median gaps, variable components, quartile distribution, and differences by category, certified by management after consulting employee representatives. This data will be public and must be submitted to the relevant authorities.

Action Against Significant Gaps

If a gap of at least 5% without justification is detected, the company must:

• Conduct a joint pay evaluation with employee representatives.
• Analyze causes and implement corrective measures within six months.
• Ensure the evaluation is accessible to employees and authorities.

Rights of Employees and Job Applicants

• Request information about their salary and the averages by gender for those performing the same or equivalent work.
• Access criteria for salary setting and progression.
• Prohibition of salary confidentiality clauses.
• During the hiring process: receive information on salary ranges and avoid questions about salary history.

These rights aim to level employees’ negotiating position and promote a fairer and more transparent workplace culture.

Impact on Talent Management

The Directive not only involves legal compliance but also strategic changes:

• Retention and attraction of talent: salary range disclosure may lead to turnover if disparities exist.
• Labor mobility: transparency facilitates informed decisions on relocation and international opportunities.
• Organizational culture: companies must integrate pay equity into their strategy, fostering trust and internal motivation.

Additionally, international companies with employees in EU countries must adapt local policies to comply with the regulation, even if operating from outside the bloc.

✅ We help you prepare

The Salary Transparency Directive presents an opportunity to reinforce equity, trust, and competitiveness in companies. Preparing in advance allows effective compliance, improved talent management, and avoidance of legal penalties.

At Adlanter, we support companies throughout the process, from salary audits, implementation of transparency systems, to training teams and executives on new rights and obligations.