Employers hiring workers in Europe are being warned that failing to disclose salary information puts them at a competitive disadvantage and a growing compliance risk, as EU Member States begin implementing the EU Pay Transparency Directive and the UK government consults on similar reforms of its own.
The timely warning from Agility EOR follows research showing that 80 percent of jobseekers would avoid applying for roles that do not disclose salary details, underlining the growing expectation for pay transparency. The study also found that only 42 percent of HR job advertisements currently include salary information, suggesting many employers continue to miss opportunities to attract talent.
Under the Directive, employers must provide candidates with information about the initial pay level or salary range before the first interview and will be prohibited from asking about salary history. Employees will also gain the right to request information about their own pay and the average pay of colleagues performing the same work, broken down by gender.
Larger employers will also be required to publish gender pay gap data and address unjustified pay gaps exceeding five percent. The legislation applies to organisations employing workers within EU Member States, including businesses headquartered outside the EU and those hiring through Employer of Record (EOR) arrangements.
The warning comes as the UK government launched its own consultation on 15 July 2026, proposing that employers be required to publish salary information in job adverts, or share it in writing with candidates before interview, as part of wider reforms to equal pay law. The consultation is open until 27 October 2026 and, if taken forward, would apply in England, Scotland and Wales. Unlike the EU Directive, the UK proposals do not currently include a ban on asking candidates about their salary history.
Sam Barnes, Co-Founder and Sales Director at Agility EOR, said: “For years, many employers have treated pay transparency as a recruitment choice, but that’s changing. The EU has set a new benchmark, and the UK government’s own consultation this month shows the direction of travel here too. Pay transparency is becoming a global trend, with similar legislation already in force across several US states, including California, New York and Washington, as well as parts of Canada.
“The organisations that prepare now will reduce compliance risk, strengthen their employer brand, build greater trust with employees and put themselves in a stronger position to attract top talent in an increasingly competitive market.”
To prepare for the new requirements, organisations should:
- Review and standardise job architecture and salary frameworks.
- Benchmark pay to identify and address unexplained disparities.
- Train managers to communicate pay decisions confidently and consistently.
- Develop a transparent reward strategy that can be applied across international workforces.
Sam concluded: “Many organisations are approaching pay transparency country by country, but with the EU and now the UK moving in the same direction, the real opportunity is to build a consistent global approach to pay — one that supports fairness, strengthens employee confidence and helps attract exceptional talent wherever they hire.”
For more information, visit www.agilityeor.com.