For a long time, pay was one of the most confidential subjects in a company. The European pay transparency directive changes this: a salary range given to candidates, a ban on asking for pay history, employees’ right to know average pay levels, reporting of pay gaps between women and men. For HR teams, this is not a mere formality: it requires consistent pay structures, written criteria and gaps you can explain. This article presents what the directive provides, then the concrete work for recruitment and compensation teams.
What the European directive provides
The text and its timetable
Directive (EU) 2023/970 🔗 aims to strengthen the application of the principle of equal pay between women and men for the same work or work of equal value, through transparency and enforcement mechanisms. According to the European Parliament’s procedure summary 🔗, it entered into force in June 2023 and Member States had to transpose it by 7 June 2026 at the latest.
Where France stands
At the time this article was published, the French transposition law had not yet been adopted. The exact obligations applicable in France (thresholds, deadlines, sanctions, how it fits with the gender equality index) will depend on that text. The main lines of the directive are, however, known, and many companies have started preparing.
The four pillars
- Transparency before hiring: starting pay or pay range, ban on asking for salary history.
- Transparency of criteria: the criteria for setting and progressing pay must be accessible, objective and gender-neutral.
- Employees’ right to information on pay levels.
- Reporting of gender pay gaps and their correction.
The burden of proof
The directive also provides that, when an employee presents facts from which pay discrimination may be presumed, it is up to the employer to prove that there was none. This is a major change for how pay decisions are documented.
Salary ranges in job ads
What the directive requires
Candidates must be informed of the starting pay or the pay range for the role, either in the job ad or before the interview. The employer may not ask them about their pay history.
What this changes for recruitment
For a recruiter, it is a transformation of practices:
- every role opening requires an approved range agreed with the manager and the compensation specialist, before posting;
- the question “how much do you earn now?” disappears from interviews and application forms; it can be replaced by a question about the candidate’s expectations;
- negotiations outside the range must be exceptional and justified.
Building a credible range
A good range is based on the internal pay structure, the collective agreement classification and, if possible, a market survey. Too wide, it says nothing; too narrow, it blocks negotiation. Our article on writing a job description shows where to include it in the ad.
Forms and the ATS
Think about the tools: application forms and ATS fields that ask for current salary need to be reviewed. It is a quick job, but often forgotten.
Employees’ right to information
What the directive provides
Employees will be able to request information on their individual pay level and on average pay levels, broken down by sex, for categories of employees doing the same work or work of equal value. They must also have access to the criteria that determine their pay and progression.
What this requires from HR
- defining the categories of comparable employees, which requires an up-to-date classification or job evaluation;
- being able to calculate averages by category and sex quickly, from payroll data;
- preparing a standard answer and a process for handling requests;
- training managers, who will be asked first.
Confidentiality clauses
The directive opposes clauses that would prevent employees from disclosing their pay in order to enforce the equal pay principle. Contract templates and internal rules deserve a review.
Pay structures, classifications and gaps to justify
Reporting gaps
According to the European Parliament summary, employers with at least 250 workers will have to report information on the gender pay gap to the national authority by 7 June 2027, then every year; those with 150 to 249 workers every three years; those with 100 to 149 workers every three years from 7 June 2031. Member States may extend the obligation to smaller organisations.
Joint pay assessment
When the report shows a gap of more than 5% in a category of workers that the employer cannot justify with objective, gender-neutral criteria, a joint pay assessment must be carried out with employee representatives.
Reworking pay structures
To prepare, many companies are revisiting the basics:
- job evaluation that makes it possible to compare different jobs of equal value;
- documented pay scales or ranges by level;
- written criteria for pay rises and promotions, applied the same way everywhere;
- an analysis of existing gaps, category by category, with a correction plan when a gap cannot be explained.
How it fits with the current index
In France, the gender equality index remains in force until the transposition law decides otherwise. The data it uses is a good starting point; our article on calculating the gender equality index details its rules.
What this changes for comp & ben roles
A role that becomes strategic
The person in charge of compensation and benefits becomes the guarantor of the whole system’s consistency: pay structures, criteria, gap analyses, answers to requests, preparing reports. The skills sought are changing: job evaluation methods, statistical analysis, legal knowledge, explaining things to managers.
Working with recruitment
Recruitment and compensation teams must work together on every role opening. A recruiter who can explain a range and defend a pay policy to a candidate becomes more valuable.
Showing it on your CV
If you have taken part in a job evaluation project, a pay structure redesign or a gap analysis, write it precisely: “Redesigned the evaluation of one hundred and twenty roles and built ranges by level, in preparation for pay transparency obligations; analysed gender pay gaps by category and presented a correction plan to the executive committee.” The compensation and benefits manager CV example and our article on the comp & ben CV show how to structure this profile, and the talent acquisition CV example covers the recruitment side. When you are ready, create your CV for free: the layout is handled for you, and the PDF keeps terms such as “job evaluation” or “pay transparency” in text that ATS read properly.
Sources
- EUR-Lex, Directive (EU) 2023/970 of the European Parliament and of the Council 🔗 on pay transparency.
- European Parliament, Legislative Observatory, summary of the directive 🔗: obligations, reporting timetable, joint assessment, transposition.
Frequently asked questions
Does pay transparency already apply in France?
The directive had to be transposed by 7 June 2026. The precise obligations in France depend on the transposition law, which had not yet been adopted when this article was published. Many companies are preparing without waiting.
Do you have to show an exact salary in the ad?
The directive provides for information on the starting pay or a range, in the ad or before the interview. A realistic range is the most common practice.
Can you still ask a candidate for their salary expectations?
Asking about the candidate’s expectations remains possible; it is the question about their pay history that the directive prohibits. The difference must be clear in forms and interviews.
Are small companies concerned?
The obligations on information before hiring and transparency of criteria apply broadly to employers, with possible adjustments for the smallest. Gap-reporting obligations depend on headcount, following the directive’s timetable.