EU wage‑transparent directive set to reshape pay negotiations in Hungary

The European Union's wage‑transparency directive (2023/970) requires companies to disclose the average remuneration for work of equal value, aiming to cut the gender pay gap and enforce the principle of equal pay for equal work. Member states were supposed to incorporate the rules into national law by 7 June 2026, but several, including Hungary, have indicated they will delay implementation to 1 January 2027.

In Hungary, the transposition of the directive is under way. Experts at WHC note that firms will have to prepare for new reporting obligations and a cultural shift in wage‑setting. Employees will soon be able to request the average salary of peers doing the same job, giving them stronger bargaining power and making salary discussions more data‑driven. Employers, however, must manage additional administrative workload and adapt negotiation practices that have traditionally relied on limited pay information.

The changes are expected to make salary negotiations more balanced, reducing the information asymmetry that often leaves workers unaware of their position within a company's pay structure. While the deadline is still months away, companies are advised to begin preparations immediately to comply with the forthcoming EU rules.