EU Salary Transparency Directive Forces Companies to Prepare Pay Gap Reporting by 2026

The European Union's salary‑transparency directive (2023/970) requires employers to disclose pay information and address gender wage gaps. Companies with more than 100 employees must publish regular gender‑pay gap reports, while those with 150‑249 staff face an initial reporting deadline of 7 June 2026 and larger firms must do so annually. The rule bans asking job candidates about past salaries and obliges employers to provide clear salary ranges in job adverts and to explain the criteria used for pay decisions. France is expected to introduce the related law later this year, missing the EU’s original 7 June 2026 target, and has urged firms to start preparing now. In Spain, small and micro‑enterprises must adapt hiring practices, publish salary bands, and ensure gender‑neutral job descriptions, with penalties up to €225,018 for non‑compliance. The directive aims to reduce the EU’s average gender pay gap, which stood at 21.8 % in 2024, by increasing transparency and accountability across the labour market.