Pay transparency

The EU Pay Transparency Directive (2023/970) brings fundamental changes to salary negotiations in Germany – to be implemented by June 2026.

What's changing:

1. Salary in job adverts (mandatory!):

• Employers must state the starting salary or salary range in the advert itself
• At the latest before the job interview
• Prohibited: asking applicants about their previous salary

2. Right to information for EVERYONE:

• Every employee can find out what colleagues in comparable positions earn
• Regardless of company size (previously: only from 200 employees)
• Broken down by gender

3. Reversal of the burden of proof:

• It's NOT you who has to prove discrimination – the employer has to prove there is NONE

4. 5% rule:

• If there is a pay gap of more than 5% between men and women, measures must be taken
• Together with the works council

Sanctions for violations:

• Entitlement to back pay, damages, compensation
• Fines depending on company turnover
• Possible exclusion from public contracts

Current situation:

• Gender pay gap in Germany 2025: 16% (unadjusted)
• At the current pace, the gap would only be closed in 90 years