EU salary‑transparency directive forces firms to disclose pay as many states lag

The European Union’s salary‑transparency directive (2023/970) obliges companies to publish clear pay criteria and levels, aiming to narrow the gender pay gap that averages 11% across the EU and up to 25% in Italy. Firms must collect, analyse and report detailed remuneration data, a step that could also boost productivity by prompting objective, gender‑neutral pay structures.

Implementation deadlines are set for 7 June 2026, but progress varies. Six member states – Austria, Bulgaria, Croatia, Hungary, Luxembourg and Portugal – have not yet begun any legislative action. Ten countries have introduced draft laws, including Cyprus, Denmark, Estonia, France, Ireland, Italy, Latvia, Lithuania, the Netherlands and Romania. Partial transposition is reported in Belgium, Malta and Poland, while Slovakia’s Equal Pay Act will take effect on the deadline date. France and Germany are expected to miss the deadline, creating uncertainty for employers.

The European Confederation of Trade Unions estimates that failure to adopt transparency measures could cost women €4.8‑7.2 billion annually across the EU, equivalent to €465‑700 per woman each year. Companies are urged to map job categories, audit pay structures and address any identified disparities ahead of national law enactments.