EU salary transparency law: clarity in job offers and its impact on recruitment

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When exploring a new business opportunity, candidates want as much detail as possible before submitting an application. Among the many details that usually stand out, there’s often one element that gets overlooked, yet it matters greatly in deciding whether to pursue a role. The European Union has introduced new legislation that requires employers to disclose key contract details during each recruitment process.

This policy will affect all companies operating within the EU’s 27 member states. The transition period runs through June 2026. Starting from that date, job offers must clearly state all contract specifics, including compensation. This particular requirement is frequently the most debated, yet it is also seen as crucial by many applicants who want full clarity before accepting an offer. A survey of information portals reported that about nine in ten job seekers believe this disclosure should be standard practice in job postings.

Until the June 2026 deadline becomes mandatory, many nonetheless support early adoption. Companies would be wise to begin incorporating transparent contract details into early recruitment steps and during interviews. The EU intends full transparency in these processes, which are pivotal for people seeking employment opportunities.

Know what you’ll earn before making a decision

In May of this year, the European Union approved a salary transparency framework. Employers will need to include compensation ranges and the guaranteed minimums a new hire can expect. Although the EU Directive 2023/970 went into effect a few months ago, compliance across all governments is not required until June 7, 2026. During this transitional period, organizations must align with regulations that apply to:

  • All employees under an employment contract or other formal working relationship.
  • Applicants seeking new roles.
  • Both public and private sector workers.

Brussels emphasizes equal pay for equal work, aiming to close the gender wage gap. EU data show that in 2020 men earned about 13 percent more than women for the same role. This wage parity target is a key objective, and including salary details in a job offer is expected to promote healthy competition among employers while helping candidates make informed financial decisions.

Job seekers welcome greater clarity

Most job seekers consider salary transparency important, but other factors also shape a final decision. Working conditions, hours, location, and team dynamics all play a role in choosing an employer. The requirement should be fair, reliable, and aligned with the position profile to avoid mismatches and disappointment.

Joining the information channel

Infojobs referenced a survey showing broad support for the law among its users, with nine in ten subscribers endorsing its implementation. Transparency in hiring is crucial for trust, and many respondents believe that clarity about job terms strengthens confidence in a potential employer.

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