Starting in June 2026, the Pay Transparency Law will significantly change how companies manage compensation. Its goal is straightforward: to ensure equal pay for work of equal value, narrow the gender pay gap, and introduce objective, measurable, and auditable pay criteria.

The law will apply to all companies, both public and private, and will affect employees and job candidates alike.

Key changes include a requirement for job postings to state the salary or salary range, as well as a ban on asking candidates about their previous pay. Employees will have the right to access information on average pay for their role, broken down by gender, along with the criteria used to determine pay levels and career progression.

Companies will be required to assess their pay gaps and prepare regular reports, depending on workforce size:

  • More than 250 employees: mandatory annual report
  • 100 to 249 employees: report every three years
  • Fewer than 100 employees: not mandatory, but recommended

If a pay gap of more than 5% is identified, the company must justify it using objective criteria. If that is not possible, a joint assessment with employee representatives will be required.

Non-compliance may result in fines ranging from €626 to €225,000, the loss of public funding, and compensation claims from affected employees. A key aspect of the law is the shift in the burden of proof: employers must demonstrate that any pay differences are fair, neutral, and non-discriminatory.

To support implementation, the law introduces a phased timeline based on company size:

  • More than 250 employees: by June 7, 2027
  • 100 to 249 employees: by June 7, 2028
  • 100 to 149 employees: by June 2031
  • Fewer than 100 employees: voluntary adoption

Now is the right time to review internal processes, define salary bands, and set clear promotion criteria. Doing so will ensure that, when the law comes into force, pay information is transparent, consistent, and easy to justify—strengthening trust within the organization and reinforcing its commitment to equality.

If you have questions about how to prepare your company for the Pay Transparency Law, addwill can help you review your processes, define clear criteria, and make sure you are fully prepared well in advance.