As the deadline approaches for transposing the European Directive 2023/970, salary transparency is becoming a central topic for HR leaders and organisations of all sizes. In a context where talent expectations evolve, inequalities persist and companies are urged to structure their internal policies, this reform marks the beginning of a new era: that of readable, objective and defensible remuneration.
Salary Transparency 2026: a reform reshaping HR practices in Europe
Understanding Salary Transparency 2026
A concept rooted in clarity and fairness
Salary transparency does not mean disclosing individual pay. Instead, it aims to create a framework in which remuneration becomes more understandable, where rules are clearly defined and where gaps can be analysed.
It is based on clearer salary ranges during recruitment, access to criteria determining pay levels, better identification of gender pay gaps and transparency regarding career progression mechanisms. The goal is to help both candidates and employees understand the structure of the remuneration policy.
From voluntary practice to regulatory obligation
Until now, salary transparency largely depended on voluntary initiatives. With the EU directive, it becomes a legal requirement integrated into all HR processes, from recruitment to performance management. Member states must transpose these rules by 7 June 2026 at the latest, making salary transparency 2026 a key milestone for organisations.
Why an EU directive on salary transparency?
Reducing persistent gender pay gaps
The main goal is clear: to ensure equal pay for men and women for equal or equivalent work.
Despite existing laws, the average gender pay gap in Europe remains at 12.7%. Some of this gap stems from subtle mechanisms such as unequal negotiations, unclear job classifications, unfixed promotion criteria or the absence of consolidated data.
By imposing more transparency, the EU seeks to address these invisible drivers.
Restoring trust and organisational fairness
The directive also aims to strengthen fairness within organisations. Transparent pay rules help rebuild trust between companies, employees and candidates while limiting arbitrary decisions.
A reform affecting all companies
Broad obligations applied progressively
Salary transparency 2026 will apply to all public and private employers. Reporting obligations will initially target companies with at least 100 employees, with the possibility for member states to lower the threshold.
First obligations as early as 2027
Once transposed, the first reporting requirements will apply in 2027. Companies therefore have limited time to prepare their data and update their HR processes.
Major changes introduced by Salary Transparency 2026
More transparency from the recruitment stage
Job postings must include clear salary information, either a precise amount or a range based on objective, non-discriminatory criteria. Vague wording such as “salary depending on profile” will disappear, as will questions about a candidate’s previous pay.
This greater clarity will reduce negotiation-based inequalities and promote fairer hiring processes.
New rights for employees
Employees will gain broader rights to access pay information, including average remuneration for comparable roles and criteria used to set pay levels. Employers must respond in writing within two months. Salary secrecy will no longer have legal value: employees may share their pay freely.
Explicit obligation to justify gaps
If an unexplained pay gap of more than 5% exists between women and men in the same job category, the employer must run a joint assessment with employee representatives. This will identify the causes and establish corrective measures.
The burden of proof is reversed: the company must show that its criteria are objective and non-sexist.
Organisational benefits of greater salary transparency
Enhanced employer attractiveness
Candidates (especially younger generations) value fairness and clarity. Clear salary ranges build trust, improve application conversion, and speed up hiring by reducing lengthy negotiations.
Better internal understanding of pay structures
By clarifying remuneration criteria and progression rules, organisations reduce tensions, informal comparisons and frustrations.
Pioneering companies like Clinitex already observe positive effects: publishing managerial salaries and basing pay on simple principles has strengthened internal trust and eliminated favour-based raises.
Stronger collective performance
Salary transparency aligns with a broader inclusion strategy. Research, including McKinsey’s work, links inclusion with improved performance. Clear rules allow employees to focus on collaboration rather than comparison.
Preparing for Salary Transparency 2026
Companies will need to structure pay data, clarify job classifications, objectify progression criteria and revise recruitment processes.
The earlier they start, the more they can turn this legal obligation into a competitive advantage.
Would you like to start preparing now?
Schedule an appointment with one of our HR experts to review and optimise your compensation practices.
Salary transparency 2026 is more than legislation. It represents a deep cultural transformation requiring organisations to clarify practices, professionalise pay policies and strengthen trust. Companies that anticipate early will navigate the transition more smoothly and benefit from it strategically.