Pay transparency in the EU - Which countries are ready for the new rules?
In much of Europe, workers still have limited information about what their jobs pay and how their wages compare to others doing similar work. The EU's Pay Transparency Directive aims to change this by requiring employers to become more transparent about wages and helping to strengthen the principle of equal pay for equal work.
The directive aims to help reduce the gender pay gap in the EU, which stands at 11%, meaning that women's gross hourly earnings are, on average, 11% lower than men's, according to Eurostat.
For many women, failure to implement the directive could have a direct impact on their income each year.
The European Trade Union Confederation (ETUC) estimates that failure to implement pay transparency would cost women at least €4.8 billion per year in the EU, potentially reaching €7.2 billion - equivalent to between €465 and €700 per woman per year. EU countries must implement the rules by 7 June 2026, but most are expected to miss the deadline after a three-year implementation period.
As of May 2026, six of the 27 EU countries have yet to take any action to implement the directive. These are Austria, Bulgaria, Croatia, Hungary, Luxembourg and Portugal. In September 2025, this figure was 10 countries.
While Sweden published a proposal, the government suspended it indefinitely in March 2026, citing the directive's heavy administrative burden on employers.
Germany is expected to update its legislation in 2026. In the Czech Republic, Finland, Greece, Slovenia and Spain, draft laws are expected to be adopted.
The sticking point for employers is not just the delay in German law. It's that they may have to make wage decisions, answer employee questions, and prepare for lawsuits at a time when the future standard is in sight but domestic regulation is not yet complete.
According to global employment platform Indeed, salary transparency in job postings has been steadily increasing in many European countries.
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