EU implements new pay transparency rules

The European Union has introduced new pay transparency regulations across all member states to enforce equal pay for men and women and improve legal recourse for wage discrimination. Member states are required to implement the necessary legislative and administrative provisions by June 7, 2026, and notify the European Commission. Employers must now disclose the initial salary or pay range to job applicants before an interview and are prohibited from asking about a candidate's previous salary history. Employees have the right to request information regarding their individual pay levels and average pay broken down by gender for colleagues performing similar work. Companies with at least 100 employees are mandated to publish data regarding the gender pay gap. If an unexplained pay gap of at least 5% is identified, employers will be required to conduct a salary assessment. These measures aim to strengthen accountability and transparency throughout the employment process.