Since June 7, 2026, European Directive 2023/970 on pay transparency has entered its application phase. This regulation, adopted by the European Parliament in May 2023, profoundly reshapes the relationship between employers and employees when it comes to pay. In France, although the legislative transposition is still being finalized, the key principles of the directive are gradually taking hold. Here is what you need to know.

What is the European directive on pay transparency?

Directive 2023/970, published in the Official Journal of the European Union, mainly aims to reduce pay inequalities between women and men. But it goes much further: it changes the way salaries are communicated, even before an employment contract is signed.

In practical terms, this directive requires all companies, whatever their size, to comply with new transparency rules. It creates new rights for employees and strengthens protection mechanisms against pay discrimination.

What changes for job seekers

This is one of the directive's most visible measures: all job offers must now include a salary range or the level of pay envisaged for the position. Gone are the days when an employer could publish a vacancy without giving the slightest indication of pay.

In addition, employers will now be prohibited from asking candidates about their pay history during a job interview. This practice, although very common, will be sanctioned. The goal is clear: to prevent past pay inequalities from being carried over from one job to the next.

New rights for current employees

Employees who are already in work also benefit from unprecedented rights. They can now ask their employer for information about their individual pay and about average pay levels, broken down by sex, for categories of workers doing the same work or work of equal value.

This provision allows every employee to compare their pay with that of colleagues and identify possible unjustified gaps. When a request is made, the employer must respond within a reasonable time.

« I want to know whether I am paid at the same level as my colleagues who do the same work »: this is the right that the directive establishes for the first time at European level.

Companies with more than 100 employees: reporting obligations

Large companies are subject to additional obligations. Those with more than 100 employees will have to publish precise data every year on pay gaps between women and men. This report must mention the proportion of each gender in each professional category, as well as the average pay gap.

If this gap exceeds 5% and cannot be justified by objective, gender-neutral criteria, the company will have to carry out a joint pay assessment with workers' representatives. This mechanism forces social dialogue around pay inequalities.

The reversal of the burden of proof

One of the directive's most significant legal contributions concerns the burden of proof in pay disputes. Until now, it was up to the employee to show that they were the victim of discrimination. Under the new regulation, the employer will have to prove that no discrimination occurred.

This reversal is major. It puts the employer in the position of justifying pay decisions, rather than leaving the burden of proof on the employee, who by definition has less information about the company's internal practices.

What sanctions for employers?

Companies that fail to comply with their obligations face several types of sanctions:

• Administrative fines, proportional to the payroll or set as a flat amount depending on the seriousness of the breach;
• Exclusion from public procurement for companies that are convicted;
• Loss of subsidies and public aid from which they benefited.

These sanctions are designed to deter non-compliant behavior and encourage companies to anticipate their obligations rather than wait for an inspection or litigation.

And in France: where does transposition stand?

France has not yet completed the transposition of the directive into national law. In June 2026, Labour Minister Jean-Pierre Farandou sent the transposition bill to the Council of State — a few days after the June 7 deadline. This delay, shared by several Member States, is not without consequence: the European Union may launch infringement procedures against countries that do not respect the timetable.

However, the main principles of the directive can already be invoked before French courts, under the principle of direct effect of European directives when their transposition deadline has passed.

How to prepare

For employees, this directive is an opportunity to better understand their salary positioning. It is advisable to contact HR or staff representatives to find out how these new rules are being implemented in the company.

For employers, the time has come to carry out a pay audit, structure salary grids on objective criteria and train HR teams on the new obligations. It is better to anticipate than to face litigation.

Pay transparency is no longer optional: it is a legal requirement that is durably transforming the world of work in France and Europe.