From June 7, 2026, traditional salary secrecy will end in the EU. The new pay transparency directive obliges employers to be more open and fair when it comes to pay. Employees receive expanded rights to information and will be able to better understand salary differences in the future.
End of salary secrecy
With the EU Pay Transparency Directive (2023/970/EU, EUPTD), the previous salary secrecy will be abolished. Employers are no longer allowed to prohibit their employees from discussing their salaries by contract or internal regulation. This strengthens the individual negotiating position and promotes an open corporate culture.
Information rights for employees
In the future, employees will have the right to obtain information about their individual pay and the average salary of comparable persons. If you have 50 employees or more, you also have the right to information about salary developments. This information must be provided upon request within two months. In addition, employees must be proactively informed annually about their right to information.
Transparency for job advertisements
In future, employers will have to specify the salary range for the respective position in job advertisements. This allows applicants to better assess compensation and promotes fair hiring practices, as emphasized by the Council of the European Union.
Obligation to pay analysis
Companies with more than 50 employees are obliged to carry out salary analyzes regularly. According to the European Council, these are intended to uncover potential gender pay gaps so that employers can take action to equalize them if necessary.
Implementation obligation by June 2026
The EU directive must be implemented into national law by June 7, 2026. Companies should prepare for the new requirements at an early stage in order to avoid compliance risks and benefit from the advantages of a transparent pay structure.
Jennifer Vogel, editorial team at finanzen.net
