The European Union abolishes salary secrecy - what does this mean for millions of workers
Starting from June 2026, employees in all EU countries will have a legal right to discuss and disclose their salaries freely. This represents the full implementation of the EU directive on wage transparency, ending the long-standing culture of salary secrecy that has prevailed in many European workplaces, especially in countries like Germany.
The new directive, known as Directive (EU) 2023/970, was adopted on June 6, 2023, and must be integrated into national laws by June 7, 2026. This law aims to make pay structures transparent, eliminate gender-based discrimination, and grant workers greater bargaining power. Employers will also be legally required to provide clear information about wages and ensure equal pay between genders.
One of the main elements of this directive is the abolition of contractual clauses that prevent employees from discussing their salaries. This means that workers will be free to speak publicly about their income without fear of penalties or professional consequences. The law also requires companies to inform job applicants of the salary range before hiring, and prohibits employers from asking candidates about their previous income. Employees will have the right to request a comparison that shows how their salaries align with their peers in similar positions.
To implement these requirements, current national laws, such as the wage transparency law in Germany, will be amended or replaced to ensure compliance with European standards. Companies will also be required to publish periodic reports on gender pay gaps, and if these reports show a difference of more than five percent without objective justification, they will be obliged to take corrective actions.
As for employees, experts believe that this step represents a significant cultural shift. A salary report for 2026 issued by Michael Page revealed that 58% of employees consider current salary systems to lack transparency. This new law is expected to help reduce the gender pay gap, enhance trust within workplaces, and empower employees to make more informed career decisions. However, many small and medium-sized enterprises may face financial and administrative challenges as Europe enters a new era of wage transparency.