Germany violates EU law by missing pay transparency deadline

Germany is now in breach of EU law after failing to implement new regulations on pay transparency by the June 7 deadline. The German government indicated that national legislation would only be adapted in the coming months, with full implementation expected by early 2027.

The European Commission must now decide whether to initiate infringement proceedings against Germany. However, if the country proceeds with adapting its laws in the near future, the commission might refrain from taking punitive action. The delay has raised concerns, particularly as women in Germany continue to earn significantly less than men.

According to the latest Eurostat data from 2024, women's gross hourly wages in Germany were, on average, 15.6% lower than men's, a gap wider than the EU average of 11.1%. To address this disparity, the new EU directive mandates that employees gain the right to inquire about the average pay for comparable roles, broken down by gender. Furthermore, employers with over 100 staff will be required to regularly report on the gender pay gap within their organizations.

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But at the end of the day, we will probably not avoid a low-bureaucracy implementation.

Additionally, employers must inform job applicants about starting salaries early in the hiring process and are prohibited from asking about previous salary history. The pay transparency directive was approved by EU states and the European Parliament in 2023, with Germany's then-federal government abstaining from the vote. The June 7, 2026, deadline was set thereafter.

Family Minister Karin Prien stated in a recent podcast that Germany is discussing potential adjustments to implementation deadlines and content with other European partners. She acknowledged the need for a low-bureaucracy implementation but stressed that pay equality must remain a political objective. A ministry spokesperson cited the economic situation as the reason for the delay, noting that the reporting obligation and the right to information would likely not become effective until June 2028. The newspaper "Die Zeit" initially reported on this delay.

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Pay equality must remain a political objective.