The aim of the new rules on pay transparency is to strengthen the principle of equal pay to men and women and to improve access to the courts for employees who have been subjected to discrimination. The rules focus on employers’ pay structures and processes as well as employees’ access to pay information. Pay transparency must thus contribute to ensuring equal pay for equal work.
The bill introduces the following key amendments:
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Pay transparency: Employees are entitled to request information on their own pay levels and the average pay levels for employees performing equal work or work of equal value.
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Pre-employment information: Applicants for employment are entitled to information on initial pay or pay range, and employers may not ask applicants about their pay history during their current or previous employment relationships.
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Pay structures: Employers must introduce pay structures based on objective and gender-neutral criteria.
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Job classification: Employees must be classified into job categories depending on whether they perform equal work or work of equal value. The categories must be grouped in a non-arbitrary manner based on non-discriminatory and objective gender-neutral criteria.
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Pay reporting: Employers with at least 100 employees are subject to pay reporting showing the gender pay gap for each category of employees. The information must be broken down by ordinary basic wage or salary and complementary or variable components. Reporting frequency depends on the number of employees:
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Employers with 250 or more employees must make the information available by 1 September 2028 at the latest, and then every year.
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Employers with 150 to 249 employees must make the information available by 1 September 2028 at the latest, and then every three years.
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Employers with 100 to 149 employees must make the information available by 1 September 2031 at the latest, and then every three years.
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Burden of proof: If employers fail to fulfil their obligations under the bill, the burden of proof rests on the employers to prove that no discrimination has taken place.
It is proposed that the bill be enacted on 1 March 2027. The first reading of the bill is scheduled to take place on 22 October 2026.
We are monitoring the legislative process closely and will provide regular updates as new information becomes available.
Read the full draft bill here.
We have previously published a news article on the EU Pay Transparency Directive. Click here to read the news article.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
