European labor rules mandate salary transparency and ban previous pay inquiries

New European directives and national regulations are implementing strict salary transparency rules to combat gender pay gaps and improve recruitment fairness.

In Greece, starting November 1, job advertisements must include the offered salary or a specific range. Employers are prohibited from asking candidates about their previous or current salary during interviews. Additionally, employees gain the right to request data regarding their own compensation and the average pay for men and women performing similar work. Large companies will be required to report on gender pay gaps, with corrective measures mandated if unjustified disparities of 5% or more are found.

In Italy, the implementation of the European directive on pay transparency is reshaping labor market policies. Companies must provide neutral job offers regarding gender and disclose the objective criteria used for salary progression. The burden of proof in discrimination cases will shift to employers, who must prove the absence of pay disparities through objective data. Contractual clauses that prevent employees from disclosing their salary are now considered null and void.