EU pay transparency directive implementation

EU Directive 2023/970 prohibits employers from inquiring about a job candidate’s current or previous salary history during interviews. The directive aims to prevent existing wage inequalities from being carried over to new roles by ensuring future compensation is based on the requirements and responsibilities of the position.

Implementation timelines vary by country. In Austria, employers are prohibited from asking about salary history starting June 7, 2026. In Germany, the implementation deadline for the directive was also June 7, 2026. While the directive applies to public sector employers in Germany as of June 8, 2026, national implementation laws for private companies have remained in the draft stage, meaning applicants may not yet be able to rely on the directive directly when dealing with private employers.

A study by Stepstone involving 8,600 employees noted significant challenges in salary negotiations, reporting that 74 percent of women and 55 percent of men feel uncomfortable during the process. Legal experts in Germany note that while the ban on salary inquiries applies directly to public employers, the legal standing for private companies remains contingent on the status of national implementation laws.