Equal Pay: Salary is no longer a secret

Due to new EU regulations, the legal situation regarding equal pay has changed since June 7, 2026. Employees can now uncover unequal pay and enforce their claims. We explain what employers need to do.

Although Germany has not yet passed a law implementing the Pay Transparency Directive , the legal situation has changed since June 8, 2026. This is because EU directives can also have direct effect (see last paragraph for details).

What's new?

Compared to the previous German Pay Transparency Act, the right to information is strengthened by now requiring all companies – including small ones – to provide information . Furthermore, the scope of the information has been expanded , and the right to information is more easily enforceable in court . This gives employees a tool to uncover unequal pay and enforce equal pay claims if their employer does not voluntarily end discrimination.

What information are employers required to provide?

During the application process

From now on, all employers must proactively state the starting salary or salary range in the job posting or at the latest before the first interview. Furthermore, they are prohibited from asking applicants about their previous salary.

During the ongoing employment relationship

All employers – regardless of company size – must disclose salaries and salary structures and provide personal information upon request. They must regularly and clearly inform employees about the existence, content, and exercise of their right to information regarding salaries and salary structures , for example, through company agreements, internal guidelines, the intranet, notices, training sessions, or information events.

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If employees request information, employers must provide at least the following in writing within two months :

• Your own fee with all components (Basic salary, allowances, bonuses, premiums or benefits in kind), itemized.
  
  
• The average pay the employees who same or perform equivalent work, separated by gender, based on the comparison group (e.g., all employees in a pay grade), not by name of individual persons.
  
  
• The objective criteria and rules according to which remuneration is determined and developed (such as classification rules, performance criteria, allowance criteria, experience levels, promotion rules).

The information provided must be clear, understandable, and comprehensible , usually in writing by letter or email. It must clearly show how the salary compares to the benchmark group and what factors determine the differences. General statements like "Everything is the same here" are insufficient. If the information is incorrect or incomplete, employees have the right to request further clarification and an explanation. It is also possible to request this information through the works council.

It's now permissible to discuss his salary.

Also new is that employers may not prevent their employees from disclosing their pay to others. Corresponding confidentiality clauses in employment contracts are therefore invalid.

Employees who have been discriminated against in terms of pay are entitled to: full back payment of the withheld pay including all special payments, compensation for lost opportunities or non-material damages suffered, and a guarantee of equal pay for the future.

Lawsuits directly based on EU law

The background to the new legal situation is the European Pay Transparency Directive, which the EU adopted in 2023. Member states had three years to transpose the requirements into national law. This deadline expired on June 7, 2026 , without Germany having passed its own legislation.

EU directives oblige member states to achieve certain objectives. If a state implements a directive too late or only partially, it may not derive any benefit from this. Therefore, German courts must now interpret national law in a way that is consistent with the directive and achieves its objective. If national law cannot be interpreted appropriately, individual plaintiffs can directly invoke these EU rules before national courts.

All companies affected

Employees in all companies can directly invoke the Pay Transparency Directive when it comes to the right to equal pay under Article 157 of the Treaty on the Functioning of the European Union . According to established case law, this provision also has direct effect between private parties, i.e., between employees and employers . The Federal Labour Court already interprets the existing law on equal pay obligations more strictly and in accordance with the Pay Transparency Directive (see judgment of 23 October 2025, case no. 8 AZR 300/24 ).

Practical tips: A guide from the DIHK (Association of German Chambers of Industry and Commerce) on implementing the Pay Transparency Directive with valuable information and to-dos can be found > here.

Source: German Association of Women Lawyers (djb); DIHK

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