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Regulation4 min read

Pay transparency: what changes for employers.

EU Directive 2023/970 brings pay ranges into the hiring process. For Gen Z it is a decisive signal, and few companies give it today.

EU Directive 2023/970 on pay transparency had to be transposed by member states by 7 June 2026. For employers, the most visible change concerns the first contact with a candidate.

What it requires, in short

  • Candidates are entitled to know the starting pay or its range before the interview, for example in the job post.
  • Employers may not ask candidates about their pay history.
  • Workers can request information on average pay levels by category.
  • Larger companies must report their gender pay gap, on a timeline staggered by headcount.

Why it matters for attractiveness

In the GPI method, transparency is a pillar of its own (P5). A job post without a range is not just incomplete: to a young candidate it signals opacity, and it is often enough to rule a company out before applying.

The window is interesting: whoever publishes ranges first in their sector gains an edge competitors can only chase.

Where to start

Start by reading your own job posts the way a candidate does: is the range there? Is the hiring process clear? Is it obvious what happens after applying? Simple questions, and exactly the ones GPI measures.

GPI team · NextGen