Pay transparency revolution: Navigating the new frontier of pay transparency in France

On 6 March, the French Ministry of Labour shared a first draft law (French draft), implementing the EU Pay Transparency Directive (PTD), with the national trade unions. For employers operating in France, understanding the nuances of this newly proposed legislation is crucial. It exceeds the requirements of the PTD, and signals a profound cultural and operational change, demanding far greater scrutiny of pay practices. In this blog post, we provide an overview of these expected amendments, should the draft be adopted as it is.

It is important to note that many key aspects of this draft law, particularly concerning specific implementation details and thresholds, will be further defined by subsequent implementing decrees, which are still awaited.

Key pillars of the French draft

The French draft builds on existing domestic measures, such as the Gender Equality Index (which, since 2018, has required companies with at least 50 employees to calculate and publish an overall score based on indicators relating to pay gaps, promotion rates, and individual pay rises). It strengthens measures to correct pay disparities within companies by framing the definition of equal value work and revising the existing Index mechanism (e.g., implementing 7 indicators, as, for example, the pay gap between women and men by employee professional category).

On the other hand, the French draft also introduces various enhancements that go beyond the PTD’s provisions: 

1. Broader scope 

The French draft goes beyond the PTD as it encompasses a wider range of businesses that are required to report on the gender pay gap. Unlike the PTD which requires companies with 100 and more employees to comply with such obligation, the French draft mandates that companies with at least 50 employees will be required to report annually on indicators related to the gender pay gap (with the exception of the specific indicator on the pay gap by category of equal work or work of equal value, which will be reported every three years for companies with 50 to 249 employees).

2.  Applicant and employee rights

In line with the PTD, the French draft provides for increased pay transparency for employees and job applicants compared to the current national landscape. 

The French draft is however stricter than the PTD regarding the information rights of new applicants, as it provides that the job vacancy notices must specify the initial salary range and the relevant CBA provisions if they are rendered public in any way. It therefore seems that it will only be if there is no public vacancy notice that it will be possible to provide this information  be provided in writing before or at the latest during the recruitment interview. 

The French draft also creates new individual information rights for employees (e.g., right to request average remuneration levels, broken down by gender, for employees in the same professional category or prohibiting pay confidentiality clauses), provided that anonymisation can be protected. Anonymisation will be considered protected if the number of employees in a category exceeds a certain threshold. Although this number is not yet explicitly stated in the French draft, the Ministry of Labour seems to have indicated to social partners that it could be 10 employees. A notable divergence from the PTD arises when anonymisation cannot be guaranteed. While the PTD mandates sharing this information with employee representatives, relevant authorities, or pay equality bodies, the French draft merely states that the company will explain to the employee why the information cannot be shared. We presume this is likely an error that will be corrected, but it is a relevant point to highlight at this stage.

3. Gender pay gap indicators and reporting

The French draft provides a meticulously detailed process for identifying, justifying, and remedying pay gaps, including consultation with social and economic committees, negotiation with trade unions and staged corrective measures, culminating in joint assessments if gaps persist.

Pursuant to the French draft employers must annually report on 7 gender pay gap indicators. A key indicator is the pay gap between women and men by category for ‘equal work or work of equal value’. The other 6 criteria will have to be specified by a decree but will likely be the ones listed in the PTD. Most indicators are made public on the Ministry of Labour's website, but the detailed category-specific pay gap indicator will be communicated internally to employees and the social and economic committees .

Additionally, French labour authorities will play a significant and active enforcement role, closely monitoring compliance and ensuring that companies implement appropriate remedies to reduce identified pay gaps.

4. Penalties and shifted burden of proof

Administrative penalties for breaches of these obligations can reach up to 1% of the company’s total gross payroll, with the possibility of doubling to 2% for repeat offences. For a failure to provide the right information to the social and economic committee, employees or candidates a penalty of 450 EUR (doubled for repeat offences) is proposed. 

The French draft, in line with the PTD, reflects the shift in the burden of proof on the employers’ side in case of a dispute, if the latter has not complied with the PTD’s provisions. 

What does this mean for employers in France?

Despite the French draft being published, it is not expected to be sent to the National Assembly until Autumn 2026. This means that France will be in the same situation as other Member States that have communicated a potential delay of the implementation of the PTD (i.e. after the 7 June deadline mentioned above), like Denmark, Ireland, Sweden, etc.

While this is just a draft, and it might undergo further amendments, employers operating in France can start preparing by taking the following steps:

• Auditing current pay structures and job classifications against the expanded definition of ‘work of equal value’.
• Developing robust data collection and analytical capabilities to meet the detailed reporting requirements.
• Revising recruitment processes to comply with salary transparency and prohibition on salary history inquiries.
• Preparing internal communications and training for HR, management, and employees on these new rights and obligations.

Proactive engagement and meticulous preparation are no longer optional but essential for compliant and equitable operations within France.