EU Pay‑Transparency Deadline Passes; Austria and Germany Miss Target

The EU’s gender‑pay‑gap directive required all 27 member states to transpose its rules into national law by 7 June 2026. The legislation mandates that companies disclose average wages by gender and position, ban salary history questions in job applications, and oblige larger firms to report gender‑pay gaps.

Only three countries – Slovakia, Italy and Lithuania – have met the deadline. Austria has not yet presented a draft law, despite Labour Minister Korinna Schumann promising to submit one before the cutoff. German Family Minister Karin Prien warned that “we will probably not be able to avoid a bureaucracy‑lean implementation” and said Germany is negotiating changes with other EU partners while the EU Commission considers infringement proceedings.

Sweden announced it will not implement the directive and is seeking renegotiation. Business groups in Austria and Germany have warned of added bureaucracy and costs. The EU may launch contractual‑violation procedures against states that fail to comply.