Germany: EU pay transparency directive to force companies to ‘get tough’

Germany introduced a pay transparency law in 2017, meaning companies are already somewhat familiar with the issue. However, the broader scope and stricter requirements of the EU directive, the delay in preparations caused by early elections, and the technical and managerial challenges of implementation have created uncertainty and a cautious, wait-and-see approach among employers.

By Thomas Schnee. Published on 24 October 2025 à 16h49 - Update on 24 October 2025 à 16h50

With only a few months remaining before the deadline to transpose the EU pay transparency directive — a reform set to significantly impact employers — mind RH is publishing a series of country overviews examining how its implementation will affect key European markets and how businesses are preparing.

How are German companies preparing for the arrival of the EU pay transparency directive? In a rather confused manner, partly due to an unclear timetable, according to Anja Weusthoff, member of the executive board of the German Trade Union Confederation (DGB) responsible for women’s issues and vice-president of the German Women’s Council. “The government has decided that the issue of implementation provisions and the outlines of the bill will first be discussed at a committee on the implementation of the pay transparency directive ‘with a minimum of bureaucracy’. The deliberations are now complete and the final report is expected around November,” she explains. A preliminary draft bill will then be prepared by the German education ministry prior to a bill being submitted to the cabinet for consideration by parliament.…

Thomas Schnee

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