European Union implements new salary transparency regulations

New European Union regulations have come into effect requiring companies to provide transparency regarding employee salary ranges. The mandate aims to combat wage inequality by forcing employers to justify pay discrepancies and implement corrective measures if the gender pay gap exceeds 5%.

Under these rules, job offers must now include specific salaries or clearly defined salary ranges to allow candidates to evaluate opportunities accurately. The reporting obligations vary by company size: firms with over 250 employees must report pay gap data annually starting in 2027, while companies with 150 to 249 employees must report every three years. Smaller companies with 100 to 149 employees will be required to submit reports every three years beginning in 2031.