The EU Pay Transparency Directive is set to come into effect across Europe by June 2026 at the latest. And with it comes a key change for employers: the need to share pay information with job candidates during the hiring process.
Understandably, many employers have questions about what this will look like in practice, and some are concerned about the impact on hiring processes and current employees. If this is new territory for you, don’t worry: this article covers everything you need to know about salary transparency for jobseekers, including what you’ll need to share, when to share it and how to stay compliant.
Will employers have to include salary information in job ads under the EU Pay Transparency Directive?
When we discuss pay transparency for jobseekers, we often talk about including salary information in job adverts. But is this actually required under the directive? Surprisingly, the answer is no — here’s what it says:
‘Applicants for employment shall have the right to receive, from the prospective employer, information about:
- (a) the initial pay or its range, based on objective, gender-neutral criteria, to be attributed for the position concerned; and
- (b) where applicable, the relevant provisions of the collective agreement applied by the employer in relation to the position.
Such information shall be provided in a manner such as to ensure an informed and transparent negotiation on pay, such as in a published job vacancy notice, prior to the job interview or otherwise.’
In other words, employers will have to inform job candidates about the pay for a role during the recruitment process — but they don’t necessarily have to include this information in published job descriptions.
That said, national rules may go further. Some countries that have already published draft legislation, including Ireland and Poland, do include the requirement for salary disclosure in job advertisements. And even when this practice is not required by law, there are good reasons to consider doing it — as we’ll explore below.
Benefits of including salary in job descriptions
Whether or not including salary information in job ads becomes a legal obligation in your country, it will probably become the norm.
How do we know this? Because it’s already happening. More and more employers are recognising the benefits of being transparent early on — for both candidates and hiring teams.
And as pay transparency becomes more common, those that don’t follow suit risk falling behind. After all, research shows that candidates are more likely to apply for roles where salary information is clearly stated.
Here are just a few of the benefits of including pay details in your job descriptions:
- Attracts more suitable candidates: Pay information helps candidates quickly assess the level of a role and whether it matches their experience. This allows them to self-select for the roles they’re most qualified for — meaning you’re likely to attract high-quality, well-suited candidates.
- Saves time: Some candidates simply expect a higher salary than you can offer — and that’s OK. Disclosing salary details early helps avoid misaligned expectations and weeds out those candidates you can’t afford. This saves precious time for both sides.
- Streamlines negotiation: Sharing salary information with candidates upfront leads to fairer, more streamlined conversations since everyone has the information they need for an informed discussion. That means the focus is on finding a good fit within a predetermined range, rather than guesswork and hard negotiations.
- Demonstrates a commitment to fair pay: Telling candidates what you’re willing to pay shows them you have nothing to hide. It signals transparency and respect, and lets them know you appreciate them and their time. All of this helps build trust from the outset.
You can learn more about the pros and cons of salary transparency in job ads in our dedicated article.
How it works in practice: answers to common questions
We’ll say it again: we strongly recommend including salary information in your job ads, even if it’s not (yet) a legal requirement in your country. This simple step can boost trust, improve candidate experience and drive efficiency in the hiring process.
But what does this actually look like in practice? While most employers understand the principle of pay transparency for jobseekers, many have questions about exactly what they’re expected to share. To help you in your pay transparency journey, here are the answers to some common questions about salary transparency in the recruitment process.
1. Should you share an exact salary or a pay range?
The directive requires employers to share either an exact salary or a pay range during the hiring process. But which option is best? The short answer: it depends.
Posting an exact salary sets clear expectations, telling candidates exactly what they can expect to earn if they’re successful in landing the role. It also keeps negotiations very simple. However, this approach can feel overly rigid and may put off certain candidates.
Sharing a salary range gives you more flexibility. For example, it leaves you room to tailor your final offer based on the successful candidate’s experience, skills and qualifications. Depending on your policies, it may also allow for the possibility of negotiation with the right candidate.
2. How large a range is acceptable?
When pay transparency rules requiring employers to share pay ranges in job ads were first introduced in New York City, some employers tried to skirt the issue by sharing ranges spanning $100,000 or more.
While technically compliant, this clearly undermines the spirit of the law — and candidates quickly took notice. Overly broad ranges can also signal uncertainty about the role or internal misalignment, which may put people off from applying.
Employers should establish clear, evidence-based pay ranges for each role based on market data and internal equity before publishing job ads. While there’s no hard and fast rule about how wide these ranges should be, they should be narrow enough to be meaningful.
3. Base salary or total compensation?
The directive only requires employers to disclose the starting salary for a role — but that’s just one component of total compensation. So should your job ads also include details about benefits, bonuses, equity and other perks? That depends on your compensation philosophy.
Base salary is simple to communicate and easy for candidates to understand. But on its own, it might not reflect the full value of a role — especially if your offer includes generous benefits or performance-based pay. Highlighting additional compensation elements can also be particularly helpful if your salaries are below market and you’re looking to make up the difference with strong variable compensation or perks.
Above all, it’s about giving candidates a clear picture of what you’re offering and why it's competitive. Whether or not base salary alone is enough to tell this story depends on your specific offering.
4. When should companies start sharing salary information with job candidates?
In a word, now. While disclosing salary information to jobseekers may not become mandatory until 2026, sharing this information early shows candidates that you’re serious about fair pay — helping you to stand out in a competitive market.
Plus, some countries are already implementing parts of the directive, so depending where you’re based, your obligations may change sooner than expected. Getting ahead of the curve reduces the risk of non-compliance and gives your team time to adjust to your new policy — well before it becomes a legal requirement.
Of course, before you hit publish on your new job ads, there’s one more thing to think about — and it’s a big one…
A word of warning: sort out your internal equity and transparency first
Being open about pay with job candidates brings real benefits to an organisation — but it also affects existing employees. For example, imagine an employee spotting a job ad for a similar position to theirs, but with a noticeable higher salary. When starting salaries are made public, this situation is going to come up more and more — and companies need to be prepared.
Addressing internal pay equity and transparency before sharing salaries for new hires is crucial. Before making changes to your hiring process, take the time to identify and correct any discrepancies or pay gaps to ensure equal pay for work of equal value. These steps are required to comply with the directive anyway, but doing things in the right order can make a big difference to employee morale and engagement.
One last thing: if you’re feeling overwhelmed by the changes you have to make, don’t worry. All employers are in the same boat — and Figures can help you steer it. You can use our tools to accurately benchmark salaries against the market and develop robust, fair salary bands — before you start sharing salaries in your job ads.
Where to learn more about pay transparency
Want to stay up to date on pay transparency and the EU directive? You’re in the right place! You can track the latest implementation updates in our EU Pay Transparency Directive overview, and explore more insights and practical tips in our blog archive.
