The era of salary secrecy is ending with the EU's new pay transparency directive

A major change is taking place in compensation, which has been one of the most secretive topics in working life for years. Employees rarely knew or could understand how salaries were determined, the criteria effective in pay increases, or the reasons behind wage gaps. This situation is preparing to change significantly with new European Union regulations.

This change is being implemented through EU Directive 2023/970, which introduces new rules in the field of pay transparency. While this directive makes it mandatory for employers to make their compensation processes more transparent, it aims to eliminate secrecy in working life. Thus, employees will have the opportunity to clearly see the methods behind their own pay.

One of the primary objectives of the new regulation is to strengthen the implementation of the principle of 'equal pay for similar or equal value work'. With increased transparency, it is planned to reduce wage inequalities in workplaces and especially gender-based pay gaps. This step, which will directly affect all employees in EU member countries, is initiating a permanent era of transparency in work culture.