The EU Pay Transparency Directive, adopted in May 2023, requires all EU member states to enact laws by 7 June 2026 that increase transparency around pay. The aim: to shrink the persistent gender pay gap (women in the EU earned on average 12% less per hour than men in 2022).The directive will force employers to share pay ranges in job adverts, prohibit asking job-seekers about their previous salary, and let employees request information on average pay for similar roles.
However, progress among member states remains uneven. Some countries have already made serious headway while others lag behind.
Leading Countries: Early Movers and Solid Frameworks
United Kingdom (though outside the EU)
Even though the United Kingdom is no longer bound by the EU directive, job-listing data show it leads Europe in salary disclosure. According to recruitment platform Indeed, around 70% of UK job ads listed salary information in late 2024.Yet, a survey found only 46.6% of UK employees believe their employer is transparent about pay—well above the European average (~30%), but still not ideal.
Sweden
The Sweden is reportedly one of the first EU countries to submit draft legislation implementing the directive. Stockholm plans to amend its Discrimination Act in early 2026 rather than build a wholly new law. Legal experts believe Swedish companies are likely ready to go beyond minimum requirements.
Netherlands, Ireland, Lithuania
In several other countries—Netherlands, Ireland and Lithuania—draft legislation has been published or is under advanced discussion. These represent states moving faster than many peers.
Countries Falling Behind
Despite the directive’s looming deadline, many member states have barely started. According to a tracker by law-firm Addleshaw Goddard, as of September 2025, 10 out of 27 EU countries had taken no action toward transposition. These include Austria, Bulgaria, Croatia, Denmark, Greece, Hungary, Italy, Latvia, Luxembourg, Portugal and Slovenia.Notably, reliable salary disclosure in job adverts remains very low in major economies: Germany (~16%) and Italy (~19%) ranked at the bottom among six countries analysed.
Germany
Germany’s legislation (the Transparency in Wage Structures Act of 2017) already allowed employees to ask for pay comparisons, yet job-advert salary disclosure remains weak. Political turbulence following federal elections and coalition talks in 2025 have delayed updates to align with the new EU directive.
Italy and Other Southern/Eastern States
Italy and several Eastern European states lack clear timelines for implementation. For example, in Italy job posting transparency is still under 20%. Many of these lagging states also struggle with high gender pay gaps: Estonia (21.3%), Austria (18.4%) in 2022.
Why the Variation?
Several factors help explain why some countries are leading and others lagging:
- Existing legal frameworks: Countries like Sweden and the UK already had stronger transparency cultures, making transition easier.
- Political will and capacity: States facing political upheaval or other priorities (e.g., defence spending, economic crises) seem slower to act.
- Cultural transparency norms: In some regions, revealing salaries remains taboo or seen as internal business strategy.
- Economic structure & sectoral differences: Indeed’s analysis shows salary disclosure is far more common in low-paid roles (e.g., cleaning) than high-wage sectors (tech, law).
The Impact on Gender Pay Gap and Workers
One key driver for transparency is reducing the gender pay gap. Research shows that transparency legislation correlates with faster reduction in gaps. For example, in Belgium a negative or near-zero gap is recorded, in part thanks to strong reporting measures.
Moreover, allowing candidates to see salary ranges before hiring and enabling employees to compare pay for similar roles gives them better negotiation leverage. A study suggests transparency could save EU women €465-€700 annually.
However, even leading countries face trust gaps: in the UK, despite high disclosure rates, less than half of workers believe their employers are transparent.
What Employers Are Doing (or Not)
According to the Mercer 2024 Global Pay Transparency Survey:
- Only 7% of companies in continental Europe, 5% in the Nordics, and 1% in the UK & Ireland have implemented full pay transparency strategies.
- Compliance drives (rather than equity) dominate the corporate agenda: 75% of companies in continental Europe cited legal compliance as the main driver.
- ~60% of European organisations currently share hiring pay ranges; that figure is expected to rise to ~93% within two years.
In short: many firms know change is coming, but few feel ready.
What to Watch Going Forward
June 2026 Transposition Deadline
As the directive deadline nears, the gap between leading and lagging countries may widen unless slower states speed up.
Enforcement and Penalties
Legislation is only as good as its enforcement. The UK’s trust gap shows that disclosure alone isn’t enough—governance, audits and sanctions matter.
Cultural Change & High-wage Sectors
High-paid sectors (tech, finance) remain less open. Transparency laws may push change in these sectors, but shifting culture will take longer.
Hidden Gaps Remain
Salary disclosure is one step; equal pay for equal work, occupational segregation, and career progression gaps still challenge gender equality.euronews
Cross-border Implications
Multinational firms operating across Europe will face differing rules in each state. Countries with stronger transparency might attract talent, giving them a competitive edge.
Country Snapshots
| Country | Status | Highlights |
|---|---|---|
| United Kingdom | Leader (though now outside EU) | ~70% of job ads list salary; trust gap remains. |
| Sweden | Among EU earliest | Draft bill expected Jan 2026. |
| Netherlands/Ireland/Lithuania | Draft legislation published | Moving ahead of many peers. |
| Germany | Lagging key economy | Job ad transparency ~16%. |
| Italy | Low disclosure (~19%) | Still no clear national implementation timeline. |
| Austria/Bulgaria/Croatia/… | No action taken as of Sept 2025 | 10 states still inactive. |
Why This Matters
Pay transparency is more than a regulatory box-tick. It impacts:
- Worker trust and morale
- Gender equality and career advancement
- Employer brand and talent attraction
- Corporate governance and accountability
- Fair competition across labour markets
For European workers—especially women, returners from parental leave, and those in lower-paid roles—knowing salary ranges and being able to compare pay can level the playing field.
Meanwhile, for companies and governments, implementing transparency proactively may reduce litigation risk, improve culture, and ease the transition ahead of the 2026 deadline.
Conclusion
Europe stands at a crossroads on pay transparency. On one side, countries like the UK and Sweden illustrate how disclosure can become the norm. On the other, major economies such as Germany and Italy—and a bloc of ten EU states—remain behind the curve.
With the EU directive’s deadline looming, the next twelve months will be critical. Countries that move early may gain social and economic advantages; laggards risk falling further behind—both in gender equality and in labour market competitiveness.
Ultimately, pay transparency isn’t just about revealing numbers. It’s about building more equitable workplaces, restoring trust in employers, and giving every worker the information they need to negotiate and progress. The challenge now is matching legislation with action—and ensuring that transparency leads to real change.
