German gov't fails to implement EU-law on salary transparency
Germany is facing mounting criticism after failing to implement a major European Union law designed to improve salary transparency and reduce the gender pay gap across Europe.
The law, originally approved by the EU in 2023, required all member states to integrate the new rules into national legislation by June 2026. However, the German government has delayed the process, requesting additional rounds of discussion and voting. This delay could expose Germany to legal action from the European Commission.
Federal Minister of Family Affairs Karin Prien of the CDU (Christian Democratic Union) acknowledged that achieving equal pay between men and women is an important goal. However, she argued that the new EU rules are overly bureaucratic and could place an additional burden on German businesses already struggling with regulatory pressures.
According to Prien, Germany is currently in talks with neighboring countries to negotiate possible changes to the law’s content and implementation timeline. The goal is to persuade EU institutions to allow more flexibility, though Prien admitted she has little confidence that either the European Parliament or the European Commission will agree to major changes.
The salary transparency law requires companies operating within the EU to publish salary data and take corrective action if the pay gap between male and female employees exceeds 5 percent. Companies that fail to comply may face fines, while affected employees could receive compensation.
The issue remains particularly significant in Germany, where women earn an average of 15.6 percent less than men. This is notably higher than the overall EU average gender pay gap of 11.1 percent.
The delay has also intensified political tensions inside Germany. The SPD (Social Democratic Party) has previously accused the CDU of intentionally slowing down the law’s implementation, raising questions about whether political resistance is preventing faster progress toward wage equality.