New EU Rules Ban Employers From Asking About Your Salary History
09.06.2026 - 05:25:39 | boerse-global.de
A sweeping change to workplace transparency took effect across the European Union on June 7, 2026. Job seekers now have the right to know the starting salary or a realistic pay range in any job advertisement. At the same time, employers are prohibited from asking candidates about their current or previous earnings.
The directive, designed to close the persistent pay gap between men and women, also outlaws confidentiality clauses that prevent employees from discussing their wages with colleagues. For workers already on the payroll, a new individual right to information allows them to request data on the average pay levels of colleagues performing the same or equivalent work — broken down by gender. In Italy, companies must respond to such requests within two months.
Reporting obligations are phased according to company size. Firms with 100 to 249 employees must file a pay report every three years; those with 250 or more must report annually. If a report reveals a pay gap of at least five percent that cannot be justified by objective factors, the employer is obliged to conduct a joint pay assessment with worker representatives.
Slow implementation in Germany and Austria
Germany missed the transposition deadline entirely and now faces a formal infringement procedure from the European Commission. The Federal Ministry for Family Affairs plans to adjust the law in early 2027, meaning the first reporting and information duties would likely not take effect before 2028.
Austria is also dragging its feet. Labour Minister Korinna Schumann presented a draft on June 6, but agreement with the social partners is still pending. Under the Austrian proposal, sanctions would only apply one year after the law enters into force.
Italy, by contrast, met the deadline. Its decree DLgs 96/2026 transposes the directive in full, with fines for violations reaching up to €50,000.
Why the rules exist
The EU-wide gender pay gap stands at an average of 11.1 percent. In Germany the gap is 15.6 percent; in Austria it reaches roughly 18 percent. The European Commission provided funding through the Citizens, Equality, Rights and Values programme to support implementation.
A crucial procedural shift accompanies the new rules: in discrimination lawsuits, the burden of proof reverses. Once an employee presents credible indications of unequal pay, the employer must prove that no violation of the equal-pay principle occurred.
