Starting in June 2026, a new EU Directive on salary transparency will take effect, significantly reshaping how pay is discussed and managed within organizations. Member states of the European Union will be required to incorporate the Directive’s provisions into their national legislation in the coming years. Although the Directive is formally binding only for EU member states, its influence will quickly extend to the wider Adriatic region. Including Serbia, Montenegro, and Bosnia and Herzegovina. This is primarily because many companies in these countries operate as part of international corporate groups that will be obligated to follow the same rules at the local level.
As a result, salary transparency is set to become a major shift in how businesses operate. More importantly, it will play a vital role in strengthening trust among employees.
In today’s labor market, salary transparency is not just a legal obligation for employers. It’s increasingly becoming the standard for modern, progressive workplaces.
What Does the New EU Pay Transparency Directive Mean for Companies?
The European Union’s Pay Transparency Directive introduces a series of new obligations for employers, aimed at promoting fairness and closing the gender pay gap. Here are the key changes:
- Salary ranges must be disclosed in job ads – Employers will be required to include either the pay range or starting salary level in job postings, even before interviews begin. This ensures that all candidates have equal access to salary-related information from the outset.
- Questions about previous salary will no longer be allowed – Employers will not be permitted to ask candidates how much they earned in their previous jobs. This measure is intended to prevent the reinforcement of existing pay inequalities, especially those based on gender.
- Employees gain the right to salary transparency – Workers will have the right to request information about average salaries by gender and job category. In other words, employees will be able to find out what others in similar roles are earning, on average.
- Mandatory gender pay gap reporting – Companies with more than 100 employees will be required to regularly report on gender pay disparities. If the pay gap exceeds 5% without a justified explanation, the employer will be obliged to take corrective action.
- Annual reporting for larger employers – Organizations with over 250 employees will have to report annually to the relevant national authority on the gender pay gap within the company. Smaller companies (between 100 and 249 employees) will report every three years, while those with fewer than 100 employees will be exempt.
- Transparent criteria for promotion and rewards – The rules also cover career progression and performance-based incentives. Criteria for promotions and bonuses must be clearly defined and made accessible to all employees.
For a detailed overview of the specific steps employers need to take before June 2026, check out the English-language guide: “What Employers Need to Do Before 2026 – The HR Chapter.”
How Are Candidate Expectations Evolving?
Regardless of when and how national legislation adopts the new EU Directive, one thing is clear: the job market is already shifting in response.
Candidates, especially those in the IT and digital sectors, are increasingly expecting transparency around salaries and working conditions. Phrases like “salary negotiable” are quickly losing favor and may cause companies to appear less credible or even outdated in the eyes of top talent.
Organizations that are early adopters of pay transparency principles will stand out as responsible, professional, and trustworthy employers.
Pay Transparency Brings New Challenges for Employers
As employees gain the right to access salary data by gender and job position, employers will need to be ready to provide clear and well-grounded explanations. In many organizations, pay differences have evolved over time. Stemming from historical agreements, one-off bonuses, or differing negotiation leverage among candidates. Without clearly defined rules and internal procedures, these discrepancies may lead to a perception of unfairness among staff.
This is where the role of HR becomes crucial. Not only in developing and implementing fair and consistent compensation policies, but also in building the communication skills needed to handle these sensitive conversations effectively.
How to Prepare for Pay Transparency in Your Organization
One of the most effective ways to get your company ready for the new era of salary transparency is by establishing a precise, consistent, and professionally managed payroll system.
Unija ETL offers exactly that—through its comprehensive Payroll and HR Services for Businesses.
By using Unija’s services, your company benefits from:
- Reliable and fully compliant payroll calculation
- Clear and transparent tracking of bonuses and all forms of compensation
- Automated records by role and department
- Support in HR administration and reporting
This foundation not only ensures compliance with upcoming regulations but also builds trust and clarity among your employees.
Conclusion: Change Is Coming, Be Among the First to Embrace It
Regardless of when national legislation formally adopts the new rules, salary transparency is already becoming the norm in the job market. Companies that adapt in time will be in a strong position to attract and retain top talent.
Establishing clear compensation policies, supported by reliable external expertise, is a natural step for any organization striving to remain competitive, forward-thinking and socially responsible.
