Pay Transparency (Entgelttransparenzgesetz)

At a glance

• Goal: equal pay for equal and equivalent work regardless of gender (Entgeltgleichheit)
• Individual right to information under the EntgTranspG in establishments with, as a rule, more than 200 employees at the same employer
• A call to run internal audit procedures and a reporting duty mainly for companies with more than 500 employees that must prepare a management report
• The EU pay transparency directive (RL 2023/970) tightens the requirements; its transposition deadline was 7 June 2026
• As of August 2026: Germany has missed the deadline; a national implementing act is not yet in force, and a legislative procedure has been announced

What changes with the EU directive

The following points stem from the directive. Exactly how they are shaped in Germany, including the specific thresholds, will only be settled by the implementing act.

• Information for applicants about the starting pay or its range, usually before the interview
• A ban on asking applicants about their previous pay history
• Expanded reporting duties on gender pay gaps, staggered by company size, that will in future also cover smaller companies (from 100 employees under the directive)
• Reversal of the burden of proof: in a dispute the employer must show that there is no pay discrimination

FAQ

Who already has a right to information today?

Under the current EntgTranspG, employees in establishments with, as a rule, more than 200 employees at the same employer. They can request information about the pay-setting criteria and about the average comparative pay of a group doing equal or equivalent work; a comparison activity must be named.

What does the EU directive change in concrete terms?

It broadens transparency and accountability: information for applicants about starting pay, a ban on asking about pay history, staggered reporting duties on pay gaps that also reach smaller companies, and a reversal of the burden of proof in favour of employees. The precise national shape will only follow from the German implementing act.

Does the directive apply directly because Germany is late?

For private employers, generally no: an un-transposed directive usually has no direct effect between private parties. Against public-sector employers, a direct reliance on sufficiently precise provisions may be possible where transposition is missing. In case of doubt, a case-by-case assessment governs.

What should companies do now?

It makes sense to review the pay structure early against objective, gender-neutral criteria, to document comparison groups and valuation standards, and to prepare processes for information requests, regardless of when the implementing act enters into force.

Last updated: August 2026

This article provides general information and is not a substitute for legal advice in individual cases.