ARTICLE · 24 JULY 2017

The New German Pay Transparency Act – Are You Ready?

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On July 6, 2017, the Pay Transparency Act (Entgelttransparenzgesetz – EntgTranspG) came into force aiming to tackle the gender pay gap – which is suspected to range somewhere between 7 and 22 % in Germany.

GermanyEmployment and HR

Equal Pay Pulse

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Authored by André Zimmermann

On July 6, 2017, the Pay Transparency Act (Entgelttransparenzgesetz – EntgTranspG) came into force aiming to tackle the gender pay gap – which is suspected to range somewhere between 7 and 22 % in Germany. The Act mainly provides for information rights of employees and for the implementation of review and reporting procedures in companies.

The New Provisions at a Glance

The Act provides for

information claims of employees regarding pay structures in companies regularly employing more than 200 employees;
implementation of voluntary internal review procedures in companies regularly employing more than 500 employees; and
mandatory pay equity reporting for companies regularly employing more than 500 employees and are subject to reporting obligations under the German Commercial Code (Handelsgesetzbuch – HGB).

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