Pay transparency revolution: Applicants’ rights under the EU Pay Transparency Directive - A new era of pay fairness

The EU Pay Transparency Directive (PTD) marks a significant step towards greater fairness and openness in the labour market. Although the PTD’s main aim is to reduce pay inequality, particularly the gender pay gap, it also introduces important rights for job applicants during the recruitment process. These rights are designed to balance the information asymmetry that has historically favoured employers over candidates and to prevent past pay discrimination influencing future earnings. 

Under the PTD, employers are required to provide clear information about the salary being offered for a position. This includes the starting salary or a salary range determined on the basis of objective and gender-neutral criteria. The PTD states that this information must be communicated in a way that enables applicants to make informed decisions and negotiate fairly. Importantly, employers are also prohibited from asking job applicants about their previous pay or earnings history, either in current or past employment, during the recruitment process. 

When must salary information be shared 

While there isn’t a rigid requirement that it must always appear in the job advertisement, article 5 of the PTD clearly sets forth that salary information should be provided either:

• in the job advertisement itself,
• before any job interview begins, or
• prior to the conclusion of the employment contract.

By way of background, the initial draft of the PTD proposed by the European Commission required pay information to be shared prior to the interview. However, stakeholders like Business Europe (Europe’s largest business organisation representing 42 business federations) objected to this approach, reasoning that while the CV/motivation letter of a candidate could provide some information, clarifications about skills and competences are likely be made during the interview, impacting the pay offer. It would therefore be premature to share pay information prior to the interview. 

The preamble of the PTD clarifies that the purpose of such information sharing is to ensure an informed and transparent negotiation on pay. Therefore, employers should ensure candidates understand the full compensation package (including bonuses and benefits) before they enter into negotiations. Conversely, if a job applicant is not invited to an interview (e.g. because they do not fulfill the requirements of the job profile), there is no entitlement under the PTD to disclosure of said information because there is no negotiation on pay expected to happen (albeit national implementing laws may provide for stricter requirements – see further below). 

Prohibition to ask for salary history and when to ask for salary expectations

The prohibition on asking about salary history applies throughout the recruitment process, from the initial application and interviews to any informal discussions around future pay. It is worth noting that the PTD prohibits employers from asking for salary history, but there is no prohibition/penalty for the candidate if he discloses such history without being asked. 

Similarly, employers may still ask about salary expectations, but they must not use previous remuneration as a basis for setting the offer. However, employers should be careful about the moment when they ask about salary expectations. Stating them can be seen as the start of negotiations, and could therefore be considered a breach of article 5 of the PTD. So, if the applicant discloses their expectations at the time of their application in circumstances where they have not been provided with the initial pay or pay range, it could be seen as the start bargaining without the required transparency. 

Implementation across the EU so far

EU member states have until 7 June 2026 to transpose the PTD into national law. Some countries are already advancing implementation, particularly on recruitment transparency.

It’s worth reminding that the PTD is a Minimum Harmonization Directive and member states can therefore implement it by taking a stricter approach. While national details on recruitment transparency vary, employers must factor these into their recruitment processes to ensure compliance. 

Just to name a few examples: 

• Poland has already implemented article 5 of the PTD. Under these changes, employers must provide candidates with information on the remuneration level or range, including relevant collective agreement provisions, in a timely manner, in job adverts, before interviews, or before contract signing, and are prohibited from asking about previous pay.
• Ireland, for its part, prohibits job adverts that do not mention the salary range. In this respect, Ireland has gone beyond the minimum regulation of the PTD.