EU Pay Transparency Directive – Transposition Update

Status

Legislation in force for parts of the public sector from 1 January 2025

Transposition approach

Partial / Gold-plating light

Notes

Partial implementation limited to public sector (pay transparency, salary levels in job advertisements, family leave assessments); slightly higher expectation than Directive.

2025 transposition highlights

In Belgium, partial implementation has been achieved with legislation in force for the public sector within the French public service community since 1 January 2025. The Flemish Community has approved a draft bill for the public sector application, which is pending parliamentary approval. Both communities apply these rules specifically to public companies under their responsibility, reflecting a narrower scope than the Directive’s full coverage.

Status

Legislation in force from 1 June 2025

Transposition approach

Partial / 1:1 Transposition

Notes

Ban on pay secrecy clauses only; in line with Directive’s minimum requirements.

2025 transposition highlights

The Czech Republic has partially implemented the Directive by banning pay secrecy clauses effective from 1 June 2025.

Status

Draft bill

Transposition approach

Partial / 1:1 Transposition

Notes

Partial implementation limited to gender pay gap reporting; draft bill aligns closely with Directive’s minimum requirements.

2025 transposition highlights per country

In Finland, a draft bill currently before parliament aims for a “pure implementation” closely aligned with the Directive.

Status

Draft bill to be issued on 29 January 2026 by the French government.

Transposition approach

To be confirmed

Notes

Some of the directive dispositions are aligned with current French law.

2025 transposition highlights per country

Expected Key Changes for Employers:

• Pre-Employment Transparency: All companies will have to disclose initial salary ranges to candidates and will be prohibited from inquiring about their past earnings.
• Defining Equal Pay: The directive reinforces the principle of equal treatment for work of equal value. While the criteria for assessing this will align closely with existing French law, the framework for evaluation will apply at the company or Economic and Social Unit (ESU) level. The definition of remuneration will also encompass benefits in kind.
• Ongoing Contractual Transparency: During employment, companies must provide employees with clear criteria used to determine remuneration, pay levels, and progression. Employees will also have a right to information regarding their pay.
• New Remediation Mechanisms: To address pay discrepancies, new procedures include a dialogue process to justify any gaps and, notably, a joint evaluation system involving employee representatives – a novel addition to French labour law.
• Stricter Sanctions and Burden of Proof: Non-compliance will lead to fines and financial penalties. A significant increase in litigation is anticipated, as employees will have the necessary data to pursue salary adjustments. Critically, the directive reverses the burden of proof: employers found not to have complied will need to demonstrate the absence of discrimination.

Status

Commission report

Transposition approach

Partial / 1:1 Transposition

Notes

Existing law more restrictive; Commission report proposes controversial measures (see below); draft bill pending.

2025 transposition highlights per country

Germany has not yet fully implemented the Directive but made progress with the publication of a Commission report in November 2025. A draft bill is expected in early 2026. Meanwhile, a recent Federal Labour Court ruling has heightened employer risks related to pay discrimination claims.

Status

Draft bill

Transposition approach

Partial / Gold-plating light

Notes

Partial implementation limited to salary levels in job ads, employers prohibited from asking about pay history; draft bill goes beyond Directive’s minimum requirements by requiring salary level to be on the job ad itself.

2025 transposition highlights per country

Ireland has published a draft bill for partial implementation focusing on recruitment transparency. The General Scheme of the Equality (Miscellaneous Provisions) Bill 2024 requires employers to include salary ranges in job ads and prohibits questions about applicants’ pay history. The bill also mandates that employers make pay and progression criteria easily accessible to workers.

Status

Draft bill

Transposition approach

Partial / Gold-plating light

Notes

Partial implementation limited to recruitment and pay gap reporting aspects; Existing laws exceed Directive in some areas; draft proposals extend obligations.

2025 transposition highlights per country 

Lithuania has presented draft proposals to the Ministry of Social Security aiming for partial implementation of pay transparency measures. The draft legislation extends pay structure obligations and prohibits salary history inquiries, with fines for non-compliance.

Status

Legislation in force August 2025

Transposition approach

Partial / Narrower scope

Notes

Recruitment transparency implemented; comparison rights narrower than Directive.

2025 transposition highlights per country 

In Malta, legislation effective from 27 August 2025 partially implements the Directive, focusing on recruitment transparency. Employers must disclose starting salaries or salary ranges before employment, and employees have the right to request pay information within two months.

Status

Draft bill. Proposing a late implementation by 1 January 2027.

Transposition approach

Total / Gold-plating

Notes

Consultation ongoing; Gold-plating as regards the role of the worker reps and the worker definition.

2025 transposition highlights per country 

The Netherlands remains in the consultation phase, with total implementation planned by 1 January 2027. The government states that it has opted for a “pure implementation” approach, adhering closely to the Directive’s minimum requirements, however in reality there are elements of gold-plating, for example the definition of “worker” includes anyone under the company’s supervision which would include agency workers, meaning that companies would need to report the gender pay gap for such agency workers. In addition, worker representatives will be given a veto right over categorization of workers and the objective and gender neutral criteria applied.

Status

Legislation in force 24/12/2025

Transposition approach

Partial / 1:1 Transposition

Notes

Recruitment transparency implemented with effect from 24 December 2025; broader obligations proposed mirroring the provisions of the Directive.

2025 transposition highlights per country

Poland enacted legislation effective 24 December 2025, partially transposing the Directive by focusing on recruitment transparency. Employers must provide salary information before interviews and are prohibited from asking about salary history. Broader pay transparency and reporting obligations remain under development.

Status

Draft bill

Transposition approach

Total / Gold-plating

Notes

Existing framework meets Directive reporting requirements; Gold-plating as regards the reporting obligations for smaller employers as well.

2025 transposition highlights per country

Sweden already has a legal framework that meets the Directive’s reporting requirements.

Status

Draft bill

Transposition approach

Total / 1:1 Transposition

Notes

Draft bill broadly aligned with Directive.

2025 transposition highlights per country

Slovakia published a draft bill broadly aligned with the Directive, expected to come into force by June 2026. Employees and their representatives have rights to request pay information, and penalties for non-compliance are set at up to €4,000 per breach.