WhatS Changing?

A new European Union directive, set to‍ be implemented by member states around⁢ January 2026, will significantly increase transparency regarding pay and empower workers to challenge pay discrimination. The directive shifts the burden of proof in pay disputes from the⁤ employee to the employer. Employers will now be required to ⁢demonstrate they are complying with equal pay principles, rather than employees having to prove⁢ discrimination occurred.

The directive also mandates sanctions for violations, which the European Council⁢ specifies must be “effective, proportionate and dissuasive,” including financial fines. This represents‍ a major step ⁤towards addressing systemic pay‍ inequalities.

Current State of Preparedness

Despite⁢ the approaching deadline, a study by the Association for the Employment of Executives (Apec), published in November 2023, ⁢reveals that only approximately 25% of french companies are currently prepared for the new directive. The Apec study surveyed 600 ⁢private sector companies that had recruited an executive in the preceding 24 months.

Currently, less than half of companies (46%) include salary details or a‍ salary range in their job postings, and 60% routinely ask candidates to disclose their previous salary. This practice of requesting salary history has been ‍shown to perpetuate existing pay gaps.

The Gender Pay Gap:⁤ A Persistent Problem

the ⁣directive is intended to address a significant and persistent issue. In 2025, female executives in France were paid 6.8% less than their male counterparts in equivalent positions, according to⁣ data cited in the Apec study. More broadly, across the European Union, Eurostat ‍data from 2020 indicates a gender⁢ pay gap of 12.7% – meaning women earned, on average, 87.3 cents for every euro earned by men.

Implications and Next Steps