What the EU Pay Transparency Directive Means for You
The EU Pay Transparency Directive is due to come to into force across Ireland by 7th June 2026.
The purpose of this directive is to allow for fairer and clearer pay for jobseekers.
This Directive will introduce some of the most significant changes to recruitment, pay transparency and employee rights in decades.
Here are the Top 3 Main Points for You:
You Will Know the Salary Before You Apply
There will be no more guessing what ‘competitive salary’ really means!
Employers will be required to share the starting salary or a salary range either directly in the job advertisement or before any interview or discussion about pay begins. This will give you clarity on the pay you should expect from the position you are applying for. This will apply to all employers, regardless of their size.
Employers Cannot Ask You About Your Salary History
This directive will prohibit employers from asking you about your current or previous pay. With this directive in place, you will be evaluated on your skills for the job available rather than your previous remuneration.
This will reduce bias and leave you a fairer ground for salary negotiation.
It is important to note here that ‘pay’ doesn’t just mean base salary. It includes the full remuneration package you may have had. Items such as bonuses, allowances, overtime compensation, occupational pensions and all other benefits are included under this directive.
You will be evaluated on your skills, experience and the role’s requirements, not on what you earned before.
Gender Pay Gap Reports will Ensure Gender Neutral Hiring Processes
Upon starting in a new job, you can request information about average pay levels for employees doing similar work to you, broken down by gender.
You may have seen these published on company websites already as by law, employers with over 100 employees must publish these Gender Pay Gap reports.
Additionally, employers will be required to ensure the hiring process is gender-neutral and non-biased.
In summary, by June 2026, you will benefit from more salary transparency before applying for a job, protection from salary questions at interview and a gender-neutral, bias-free recruitment process.
You can listen to some more information here if you’d like to learn some more!