European Union wage transparency directive mandates new employer obligations

The European Union is implementing a directive to reduce the gender pay gap by increasing wage transparency. Starting in June 2027, employers must ensure job advertisements are gender-neutral and are prohibited from asking applicants about their current or previous salaries. Companies will be required to provide reliable information regarding intended compensation before the first interview.

In Austria, the Equal Pay Day falls on November 5, marking the point when men have earned the average annual salary of women. Statistics show a 15.5 percent pay gap for full-time workers in the country. While a draft law has been proposed to require companies with over 100 employees to submit income reports, implementation of the EU directive remains pending at the federal level.

Other European nations also report significant disparities. In Hungary, the gender pay gap stands at 16.9 percent, one of the highest in the EU. In France, women earn an average of 11.8 percent less than men, leading to symbolic protests regarding the date when women begin working without equivalent pay for the remainder of the year.