New European Union rules on pay transparency are coming into force across member states, with the aim of strengthening the principle of equal pay between women and men and improving workers’ access to justice in cases of pay discrimination.
EU member states must adopt the legislative, regulatory and administrative measures required to comply with the Pay Transparency Directive by 7 June 2026 and notify the European Commission of their implementation.
Not allowed to ask about previous pay
According to a statement published on Friday by the European Commission’s Directorate-General for Communication, the new rules introduce greater transparency obligations for employers from the recruitment stage onwards.
Under the directive, employers will be required to inform job applicants of the initial salary or salary range for a position before an interview takes place. Employers will also be prohibited from asking candidates about their previous pay.
Workers will have the right to request information on their individual pay level and on average pay levels, broken down by gender, for employees performing the same work or work of equal value.
Companies employing at least 100 people will also be required to publish information on gender pay gaps within their organisations.
Accountability
Where a gender pay gap of at least 5% is identified and cannot be objectively justified, employers will be required to carry out a joint pay assessment.
The new rules also strengthen accountability mechanisms. Employers will be required to demonstrate that no pay discrimination has occurred when transparency obligations have not been met, while member states must establish penalties for breaches of the principle of equal pay.
The directive further provides that workers who have suffered gender-based pay discrimination will be entitled to seek compensation. Equality bodies and workers’ representatives will also be able to represent employees in judicial or administrative proceedings.
According to the European Commission, the right to equal pay for equal work or work of equal value has been a fundamental principle of the European Union since the Treaty of Rome in 1957.
Despite this longstanding principle, the Commission notes that the gender pay gap across the EU currently stands at 11.1%.
