EU Pay Transparency Directive to Mandate Salary Ranges and Gap Reporting

The European Union’s pay‑transparency directive, to be transposed by 7 June 2026, obliges firms with more than 100 employees to publish salary bands for each role, report gender‑pay gaps and, where the unexplained difference exceeds 5 %, implement corrective measures. Non‑compliance can attract fines of up to 50 000 zł. The rule excludes freelancers and B2B contractors, giving them a new benchmark for negotiating rates against disclosed employee salaries. The legislation also expands the involvement of trade unions and other employee representatives in monitoring pay equality, though employers retain final decisions on wage levels and budgeting. Polish legal experts note that the directive will reshape salary negotiations, increase data‑driven benchmarking for freelancers, and potentially raise the number of wage‑related disputes as companies adjust to the new reporting obligations.