Austria's pay transparency law stalled amid coalition disputes

Austria's implementation of an EU directive on pay transparency is stalled, with the government unable to agree on a draft law proposed by the Socialist Minister of Labour, Korinna Schumann.

The draft, which aims to ensure equal pay for equal work, requires companies with more than 100 employees to create pay reports. It also mandates that job advertisements must include entry-level salaries or salary ranges. Companies that repeatedly violate these transparency obligations could face administrative fines of up to 60,000 euros.

Schumann described the draft as "reasonable and practical" and urged her coalition partners, the conservative ÖVP and the liberal NEOS, to reach a swift agreement. She emphasized that pay transparency is part of the government's program.

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I expect us to quickly find a common solution for this as a federal government.

However, the NEOS party expressed skepticism, warning of "excessive bureaucracy" and arguing that companies should not be burdened with additional documentation requirements. They pointed to existing collective bargaining agreements that regulate salary structures and noted that many other countries have also not yet implemented the directive. The NEOS advocate for revising the directive at the EU level.

The ÖVP, meanwhile, insists on the necessity of reaching an agreement with social partners, a process that has been ongoing for two and a half years without success. The Chamber of Commerce also believes the directive's implementation will strain businesses.

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We are for de-bureaucratization instead of more documentation and reporting requirements; companies should not be burdened.