Further Clarity On The German Pay Transparency Act: Top Earners As Suitable Comparators

The EU Pay Transparency Directive stipulates that member states must transpose their provisions into national law by June 7, 2026. Germany is eagerly awaiting the presentation of the corresponding draft law, after the Commission for the "Low-Bureaucracy Implementation of the Pay Transparency Directive" submitted its final report on October 24, 2025, with proposals for implementation. The implementation of the Directive will lead to an amendment of the current Pay Transparency Act in Germany, as the Directive not only has a broader scope than the German law, but also provides for more extensive rights and obligations with regard to individual information rights and reporting obligations. Among other things, German employees will be able to request information on the average remuneration of the comparison group consisting of employees of the opposite gender if these employees perform the same or equivalent work. The current Pay Transparency Act provides for such a