Salary Transparency: What Changes Ahead?
10 September 2025 · 4 min reading time
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See job offersIn 2026, salary transparency will take a decisive step forward in France. The European Directive 2023/970, adopted on May 10, 2023, aims to strengthen equal pay between men and women for work of equal value, through transparency mechanisms and sanctions. Member States, including France, must transpose these measures by June 7, 2026.
This reform complements existing measures such as the gender equality index, the Rixain law, and the Pacte law. Concretely, it will require greater visibility from the recruitment phase and throughout the employment relationship, with the goal of reducing inequalities, building trust, and enabling employees and candidates to negotiate on an informed basis.
What is salary transparency?
Salary transparency means making information about pay accessible and understandable within a company. This includes base salary, bonuses, variables, benefits in kind, and the criteria that determine them.
The goal is twofold: to allow employees to compare themselves with colleagues in equivalent roles, and to give candidates a clear idea of the offered salary before applying. Beyond access to information, this practice fosters fairness and helps prevent discrimination by relying on objective criteria such as experience, skills, or performance.
What’s new for 2026?
The European directive introduces several major changes:
- Mandatory disclosure of salary ranges in all job postings.
- Ban on requesting a candidate’s salary history.
- Access to pay criteria and average pay levels broken down by gender for the same role or an equivalent-value role.
- Regular reporting of gender pay gaps to the relevant authorities.
- Mandatory joint evaluation with employee representatives if a gap of more than 5% is found without objective justification.
- Simplified legal recourse for employees affected by pay discrimination, including the right to recover back pay.
Which companies are concerned?
All companies are subject to the principle of transparency, but obligations vary by size.
- More than 250 employees: required to publish a full annual report on pay gaps, job by job. These figures must be shared with employees, staff representatives, and authorities.
- Between 100 and 250 employees: subject to the same obligations, but with a more flexible schedule—one report every three years.
- Fewer than 100 employees: no legal obligation, but some companies already adopt pay transparency voluntarily as an employer branding tool.
If obligations are not met, sanctions must be “effective, proportionate, and dissuasive,” with the burden of proof reversed in favor of the employee.
Benefits for employees
For employees, pay transparency is much more than just access to numbers: it is a concrete way to understand their position, identify unjustified gaps, and defend their interests. During annual reviews, it provides a factual basis for negotiating a raise or a promotion.
This clarity also improves the social climate. By making rules visible and understandable, it reduces the risk of discrimination and strengthens trust in the company’s HR policy.
How to implement salary transparency in a company
- Conduct an internal pay audit to establish an accurate overview.
- Prepare communication by presenting data clearly and in context.
- Accompany pay grids with detailed explanations of the criteria used.
- Update regularly and make information easily accessible.
The more this approach is embedded in company culture, the more it becomes a factor of trust.
Pros and cons of salary transparency
Advantages
- Strengthens trust between employees and management.
- Serves as a strong argument to attract candidates.
- Helps reduce pay inequalities by making gaps visible and encouraging companies to correct them.
Disadvantages
- Can fuel constant comparisons and create tensions.
- May reduce flexibility in negotiations.
- Could harm competitiveness if disclosed salaries are below market levels.
- Without clear explanations, figures may be misinterpreted and create frustration.
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