What is the salary transparency directive, and why is it crucial in 2026?
Salary transparency is a hot topic right now! By 2026, France will have to take a crucial step forward with the implementation of an ambitious European directive: the Pay Transparency Directive (2023/970). This measure will profoundly transform companies’ pay practices, with the primary objective of reducing inequalities and promoting a culture of fairness.
So let’s dive into the heart of this revolution together, exploring the background to the pay transparency directive, companies’ obligations, the penalties for non-compliance, and of course, the expected benefits for employees.
Why a pay transparency directive in 2026?
Where does this pay transparency come from?
- Background: The European directive of May 10, 2023 (2023/970) is part of a long fight for equal pay between women and men. Its adoption marks a decisive step, after decades of discussions and initiatives at European level.
- Objectives: This pay transparency directive aims to strengthen pay transparency in order to ensure greater pay equity. In particular, it tackles gender-based pay discrimination, a persistent issue in many countries, including France.
- Challenges: Salary transparency is a major issue for companies, which must prepare for these new requirements. It is also an opportunity to strengthen their attractiveness and their employer brand.
What obligations will companies face with pay transparency in 2026?
- Scope: All companies in the European Union are concerned, but obligations vary depending on their size. In France, companies with more than 50 employees are targeted.
- Key measures: Employers will notably have to:
- Inform candidates: Provide clear information on the pay scale and the salary offered in job postings.
- Provide information to current employees: Make information available on pay levels for similar roles within the company.
- Publish reports: Make public reports on pay gaps between women and men.
- Put control mechanisms in place: Ensure the verification and correction of unjustified pay gaps.
- Timeline: The pay transparency directive must be transposed into French law by June 2026. Companies therefore have less than 18 months to prepare for these changes.
What penalties apply for non-compliance with pay transparency in 2026?
- Penalties: In the event of non-compliance with the obligations, companies face financial penalties, the amounts of which will be specified and may vary depending on the severity of the breach.
- Remedies: Employees who are victims of pay discrimination will be able to refer the matter to the competent authorities to assert their rights and obtain redress.
- Liability: The pay transparency directive also provides for a reversal of the burden of proof, meaning it will be up to the employer to prove that there is no pay discrimination.
What are the expected benefits of pay transparency in 2026?
- Pay equity: Pay transparency aims to help reduce pay inequalities, particularly between women and men, which still exist (see the INSEE article for the Grand Est region).
- Trust and motivation: A transparent pay policy strengthens employees’ trust and improves their motivation.
- Attractiveness: Companies that embrace transparency will be more attractive to candidates and talent.
- Employer brand: Pay transparency enhances the company’s brand image and its reputation in terms of social responsibility. The gender equality index had already raised employee awareness of these issues since 2019.
Pay transparency 2026: a major change for companies
Pay transparency represents a real (r)evolution for the world of work. If implemented with ambition and rigor, it could profoundly transform pay practices and help build a fairer, more equitable society.
Althéa, your expert in managing pay transparency and legal obligations
At Althéa, we support companies in managing and monitoring obligations related to pay transparency. We offer solutions for administrative and payroll management, as well as tailor-made offerings for social and market monitoring to ensure your compliance with the 2026 pay transparency directive.
Need help anticipating these new obligations? Contact our experts and make sure you are compliant before 2026!
Legal sources:
- Directive (EU) 2023/970 of the European Parliament and of the Council of May 10, 2023
- https://www.insee.fr/fr/statistiques/8306751
Please feel free to contact me if you would like any adjustments or additional information on how to prepare for this upcoming new obligation.
