Salary transparency

Salary transparency: what’s next for employers until 2026–2031

The principle is simple: equal pay for equal work or equal value. However, beyond the principle come concrete procedures that employers must implement — starting from how they publish job advertisements to periodic reports on salary differences.

Romania must transpose Directive (EU) 2023/970 by June 7, 2026. Although the exact obligations will be detailed in national law, the direction is clear. Below you will find briefly what it means for you, with a minimum timeline from the directive.

1) During recruitment: more transparency, fewer barriers

Salary range in the advertisement: candidates must see the initial pay level or a range for the position before the interview.
No salary history: you no longer ask candidates for their salaries from previous jobs.
Neutral forms: job titles and descriptions without stereotypes, non-discriminatory selection processes.

Why does it matter? It increases candidates' trust and lowers the risk of salary differences generated already at the offering stage.

2) In the current employment relationship: clear criteria and right to information

Objective and visible criteria: establish and communicate neutral gender criteria for pay and progression (promotions, raises), easy to track internally.
The right of each worker to information: upon request, provide in writing their own pay level and averages for comparable groups of workers (broken down by gender), within no more than 2 months.
No non-disclosure agreements: you cannot prohibit employees from disclosing their salaries.

The result? More internal coherence, fewer perceptions of inequity.

3) Reporting salary differences (minimum timeline from the directive)

≥250 workers: first report by June 7, 2027, then annually.
150–249 workers: first report by June 7, 2027, then once every 3 years.
100–149 workers: first report by June 7, 2031, then once every 3 years. (States can require reports for less than 100 workers.)

What is reported? Indicators regarding salary differences (including medians, quartiles, variable components), by worker categories.

4) The 5% threshold: when “joint evaluation” becomes mandatory

If there is an average difference of at least 5% in a category of workers between women and men without objective justification, the employer, together with workers' representatives, must conduct a joint evaluation of pay and implement corrective measures within a reasonable timeframe.

5) Sanctions and enforcement

The directive requires member states to implement effective and dissuasive sanctions (including fines) for non-compliance with transparency rights and obligations, plus clear mechanisms for access to justice and rules regarding the burden of proof.

Chronology at a glance

June 6, 2023 – The directive comes into force.
By June 7, 2026 – Romania adopts the transposition law (from here the exact obligations for employers will derive).
From June 7, 2027 – reports begin for employers with ≥150 workers (the frequency varies by company size).
From June 7, 2031 – employers with 100–149 workers are included in the mechanism.

What should be done in 2026 (without waiting for national law)

Rewrite job advertisements: add salary ranges and check the neutrality of descriptions.
Publish the rules of the game: organize salary and progression criteria and make them easily accessible internally.
Test your data: calculate internal pay differences by categories of workers; see where deviations occur and if they are justified.
Set up a response flow: procedure for employees' information requests, with a maximum deadline of 2 months.
Clean up documents: remove clauses that prohibit discussing salary.
Plan for the 5% scenario: methodology, responsibilities, remedies, timelines.

Legal basis (official sources)

Directive (EU) 2023/970 of the European Parliament and Council of May 10, 2023, on strengthening the enforcement of the principle of equal pay between women and men through salary transparency and enforcement mechanisms – published in the Official Journal of the EU (RO).
Explanatory materials from the EU Council on “Pay transparency in the EU.”
European Commission – context and actions for pay equality.

At Geseidl Consulting Group, we view salary transparency not only as a legal obligation but as an opportunity to strengthen trust, a performance culture, and long-term competitiveness. When implemented correctly, it brings order to processes, reduces risks, and creates a level playing field for everyone.

Start early, work with data, and document clear criteria. The rest becomes manageable!