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In Europe, pay transparency is the exception, rather than the norm.
Europeans apply to jobs without knowing the salary, then to discover after several interviews that it is far below their expectations. Asking about pay levels is a no-go, while women still earn 11 per cent less than men, causing a 25 per cent pension gap, according to Eurostat.
The EU Pay Transparency Directive (2023) promotes fairness and equality in the workplace by ensuring greater transparency around pay. It changes how salary information is communicated, perceived, and discussed at work while closing the gender pay gap.
Under the directive, companies must include the salary in the vacancy notice or inform candidates before the job interview, and report internal gender pay gaps if they have at least 150 employees. Workers don’t have to disclose their pay history; instead, they can ask about average pay levels and criteria and receive compensation for pay discrimination.
The Directive calls on member states to impose strict penalties for violations of the equal pay rule, while placing the burden of proof on employers in discrimination cases.
National implementation remains fragmented. It is in full effect only in Italy, Malta, Slovakia and Lithuania. Most countries, including Germany, France and Denmark, have postponed implementation or have only produced draft laws.
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