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Europe to End "Salary Secrecy": Employee Salaries to Become Public by 2026

It has been one year since the enactment of Directive 2023/970 of the European Parliament, also known as the Salary Transparency Law. This law will require all companies to make public the salary ranges of all their employees. In other words, you will know if your colleagues receive the same salary as you for doing the same job. With this measure, the European Directive aims to strengthen equal pay between men and women for work of equal value, setting the gender pay gap at a maximum of 5%, compared to the current European average of 13%. The law came into

However, the regulations leave a significant gap by prohibiting companies from imposing clauses in their employees’ contracts that restrict the disclosure of such information. On the other hand, Article 9.5 of this directive leaves the door open for each country to decide whether or not to require companies with fewer than 100 employees (which represent 98.86% in Spain according to official figures) to publish this information. However, a joint study by several universities in China and Israel pointed out that, despite its advantages, salary transparency could generate tensions among the workforce.

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