One year before the EU Pay Transparency Directive comes into force: Companies anticipate complex implementation – and do not feel prepared

EQS-Media / 03.06.2025 / 11:41 CET/CEST

Press release
One year before the EU Pay Transparency Directive comes into force: Companies anticipate complex implementation – and do not feel prepared

• Stepstone survey: Only one in three HR managers in Germany is familiar with the details of the EU requirements – a quarter have never heard of the directive
• Time is pressing: Almost half (46%) expect it to take more than six months to implement the EU directive in their own company
• Companies are primarily concerned about additional work, internal conflicts, and rising personnel costs

DÜSSELDORF, June 3rd, 2025 — EU member states have until June 7, 2026, to implement the EU Pay Transparency Directive into national law. The directive aims to ensure greater transparency and pay equity, for example through mandatory salary disclosures or a right to information for employees. For companies, the implementation of the new directive means considerable additional work and potential legal risks if the requirements are not implemented on time.

A recent survey of The Stepstone Group among human resources decision-makers in Germany now shows that most companies are not yet prepared for the upcoming changes. More than a quarter (26%) of those surveyed say they have never heard of the directive. 43% have heard of it but do not know any details. Only one in three (31%) say they are familiar with specific requirements. Particularly worrying is that around 46% of companies expect implementation to take more than six months – so time is running out.

“Our survey clearly shows how complex it is to implement the directive,” says Felicitas von Rauch, salary expert at The Stepstone Group. “Salary transparency means more than just stating the salary in a job advertisement. Companies need to rethink their compensation structure and processes. Salary is one of the most sensitive issues in a company. Adjusting it takes time, coordination, and sensitivity.”

What will change from June 2026 – and why many companies are overwhelmed
When the expanded German Remuneration Transparency Act comes into force in June 2026, companies will be required to disclose the salary range to applicants upon initial contact. In addition, employees will have the right to find out how their salary compares to that of colleagues with similar jobs and what criteria are used to determine salaries. From 2027, companies with 150 or more employees will also have to submit a gender pay gap report for the 2026 reporting year, in which gender-specific salary differences must be disclosed.

A comprehensive catalog of requirements – and an equally high level of respect for its implementation: Only 13% of the companies surveyed believe they will be able to meet the requirements in less than three months. A quarter (25%) estimate that it will take six to twelve months. One in five HR managers (19%) are currently unable to estimate how long implementation will take.

Lack of structures, concerns prevail: Why many companies are still hesitant about salary transparency
According to the survey, 70% of companies already use standardized job descriptions, but only just over half have established a salary system for the objective evaluation of duties (54%) or position-related remuneration guidelines (52%). The proportion is even lower when it comes to transparent communication of salaries (40%) or the use of a documentation and analysis system (34%). Internal salary comparisons – which will be mandatory in the future – are currently only possible in 28% of companies.

Many companies are hesitant to implement the directive—not only because of the organizational effort involved, but also because of concerns about internal tensions. 36% expect more discussions about salary differences within teams, and over a quarter are put off by the additional administrative work (28%). A possible increase in personnel costs is also a cause for concern (22%). “The prospect of conflicts within the team often leads companies to postpone implementation of the directive,” says von Rauch. “But transparency offers a great opportunity. Companies that structure salaries in a transparent manner and communicate them openly build trust among their employees and strengthen their own employer brand.”

Stepstone launches information campaign on the Pay Transparency Act
To support companies in implementing the new requirements, The Stepstone Group is launching new advisory services. “Especially at the beginning, companies often lack guidance and sound advice,” says von Rauch. “With tools such as the new Stepstone Salary Navigator, we support our customers with salary expertise and a pragmatic solution. The Salary Navigator helps analyze and design salary structures in a simple, data-driven, and legally compliant manner. No expert knowledge is required.” On a new landing page, the job platform also collects key information about the new directive, including clear explanations of the legal requirements, expert assessments, free webinars, and practical checklists to help HR departments with implementation.

About the survey
The results of this survey are based on online interviews with 141 employees from companies with 100 to 1,000 employees in Germany. Only people who are actively involved in salary and contract negotiations in their companies, who contribute to the development and management of salary structures and strategies (e.g., salary ranges, compensation systems, bonus models), or who regularly conduct salary and labor market analyses—for example, for compensation benchmarks, budget planning, or individual salary adjustments—were surveyed. Companies that exclusively use collectively agreed remuneration systems were excluded from the survey. The survey was conducted on behalf of Stepstone by an independent panel partner between March 28 and April 8, 2025.

About The Stepstone Group
The Stepstone Group is a leading global digital recruitment platform that connects companies with the right talent and helps people find the right job. AI-driven job marketplaces and programmatic-powered marketing solutions connect about 140 million job applications with more than 130,000 employers every year. In 2024, The Stepstone Group generated revenue of over €900 million. The Stepstone Group operates in more than 30 countries - including Stepstone in Germany, Appcast in the USA and Totaljobs in the UK. The company is headquartered in Düsseldorf, Germany and employs more than 3,000 people worldwide. For more information: www.thestepstonegroup.com/english

Contact
The Stepstone Group media relations
press@stepstone.com

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Language:

English

Company:

The Stepstone Group

Völklinger Straße 1

40219 Düsseldorf

Germany

Internet:

https://www.thestepstonegroup.com/de/

EQS News ID:

2149678

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EQS Media

2149678 03.06.2025 CET/CEST