Employers across the EU must inform job candidates of the starting salary or pay range for a position either in the job advertisement or before the interview under the EU’s new pay transparency framework.
The measure is part of the EU Pay Transparency Directive, which member states were required to transpose into national law by June 7, 2026. The directive aims to strengthen the principle of equal pay for equal work or work of equal value and reduce the gender pay gap across the bloc.
The regulations mark a major change for job applicants, who will be entitled to clearer salary information earlier in the hiring process. They also limit one of the most controversial practices in recruitment: using a candidate’s previous earnings as a reference point for a new offer.
EU employers can no longer use previous salary to shape a new job offer
For years, many employers and recruiters across Europe asked job applicants to disclose their most recent salary prior to making a new offer. In some cases, candidates were even required to provide documentation proving previous earnings. According to an updated EU policy, however, employers are no longer permitted to inquire about applicants’ pay history. Salary discussions will instead focus on the responsibilities of the position, the candidate’s qualifications, and the value of the role itself.
Critics of salary-history questions argued that the practice allowed existing pay inequalities to follow workers from one job to the next. If someone had been underpaid in a previous position, a new employer could use that lower figure as a reference point, limiting future earnings even when the new role involved greater responsibility.
The European Commission has linked this issue to broader structural inequalities in the labor market. Women, younger workers, immigrants, and other groups that have traditionally been at a disadvantage were often more exposed to the effects of salary history questions. By removing previous pay from the hiring process, the directive seeks to prevent previous wage gaps from shaping future job offers.
Salary information must be disclosed earlier
The new EU approach also addresses one of the most common frustrations among job seekers: going through a lengthy recruitment process without knowing what the position pays. Employers must provide salary information in a timely manner either in the vacancy notice or before the interview takes place. This gives candidates a clearer basis for deciding whether a role matches their expectations before they invest time in interviews, tests, and negotiations.
It also prevents pay discussions from being delayed until the final stages of hiring, when applicants may already feel committed to the process. For workers, the change offers greater transparency and stronger bargaining power. For companies, it means recruitment practices will need to become more structured, consistent, and allow for accountability.
Job ads must be gender-neutral
The directive goes beyond salary disclosure. Job vacancy notices and job titles must be gender-neutral, and recruitment processes must be organized in a way that ensures equal treatment for all applicants.
Employers are also expected to rely on more transparent criteria when determining pay and evaluating positions. This is intended to help businesses demonstrate that workers are paid equally for the same work or for work of equal value. The reform places new pressure on companies to review internal pay systems, define salary bands more clearly, and train HR teams on the new requirements.
Greece moves toward EU salary transparency rules for employers and job hiring
In Greece, the Labor Ministry has moved to transpose the EU Pay Transparency Directive into national law through draft legislation. According to Greece’s public consultation portal, a draft bill on strengthening the application of equal pay between men and women was placed under consultation in June, with the consultation process concluding on June 17.
The final national framework will determine how the new regulations are applied and enforced in practice in Greece. As with other EU member states, the trend is toward greater transparency in hiring, fewer discriminatory practices, and increased information rights for employees.
A major shift in European hiring practices
Labor market experts perceive of the ban on salary-history questions as a major change in the balance of power between employers and job candidates.
Rather than allowing pay negotiations to be shaped by past earnings, the new framework places the focus on the actual value of the job. Applicants should be assessed on their suitability for the role instead of on salaries they accepted under different circumstances or at earlier stages of their careers. The reform signals a broader shift in European labor relations. Pay transparency is no longer treated as optional by employers but as a formal legal obligation that national authorities are expected to enforce.
The coming months will show how businesses across Europe adapt to the new requirements and whether the regulations help create a labor market that is more open and competitive as well as fairer for workers.
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