Salary transparency: how to prepare your company

Pay transparency is one of the major HR challenges of 2026. With the forthcoming entry into force of the European directive on pay transparency, HR departments need to anticipate the evolution of their compensation policies.

What is pay transparency?

Salary transparency means making information on a company's remuneration package accessible and comprehensible. This includes base salary, bonuses, variable compensation, benefits in kind and the objective criteria that determine these elements.

European directive 2023/970

European Directive 2023/970, adopted on May 10, 2023, aims to strengthen equal pay for equal work or work of equal value. This regulation must be transposed into French law by June 7, 2026.

The main aim of this directive is to reduce pay inequalities. According to INSEE, in 2023 in France, women's average salary income was 22.2% lower than men's, a gap partly due to part-time work and differences in positions, but which still persisted at almost 4% for equivalent work and functions, without France being the most unequal in Europe.

A French context that is already underway but insufficient

France already has measures in place, such as the professional equality index (mandatory for companies with more than 50 employees), the Rixain law and the Pacte law for listed companies. However, there is no law obliging employers to pay transparency, so the directive to be transposed is a revolution for a country where the question of salaries is taboo.

Legal obligations for salary transparency in 2026

Transparency in job offers: an obligation even before recruitment

The European directive imposes total transparency right from the recruitment phase for all companies with at least 50 employees, but those with fewer than 50 employees can also implement the planned measures, turning current talent sourcing practices on their head.

Mandatory display of remuneration

All job offers must state the starting salary, or at least a clear salary range. This obligation applies to all advertisements published on career sites, job boards and job platforms, professional social networking sites and recruitment agencies.

Vague wording banned

Commonly used evasive formulations are strictly forbidden: " salary according to profile", " remuneration according to experience", " attractive package", " salary to be negotiated"...

Instead, companies will be required to display :

• "Salary: €35,000 - €42,000 gross per annum".
• "Fixed salary: €38,000 + variable up to 15%".

Prohibition on asking about salary history

Recruiters will be formally prohibited from asking applicants for their current or past remuneration. This measure is designed to break the vicious circle where pay inequalities are perpetuated from one job to the next.

Impact on employer appeal

According to recent data, one out of every two candidates does not apply to job offers that do not state a salary. Salary transparency is therefore becoming a key factor in attracting talent, particularly in a tight job market.

Companies that already display their salary ranges are seeing an increase in the number of qualified applications, a reduction in recruitment time and a strengthening of their image as a responsible employer.

Different requirements for different company sizes

Salary transparency regulations apply progressively, depending on the size of your organization's workforce.

Companies with fewer than 50 employees :

Although not legally obliged to do so, these organizations can voluntarily adopt salary transparency as an employer brand lever to attract and retain talent.

Companies with 50 to 99 employees :

France plans to apply certain obligations from 50 employees upwards (compared with 100 in the European directive), thus aligning transposition with the existing professional equality index. The precise arrangements will be defined in the final transposition.

Companies with 100 to 249 employees :

• Transparency report every 3 years
• Gradual implementation schedule (2027 for 150-249 employees, 2031 for 100-149 employees)
• Same correction obligation for deviations exceeding 5%.

Companies with more than 250 employees :

• Annual publication of a detailed report on gender-based pay differentials in relation to compensation-setting criteria
• Communication to competent national authorities
• Correction obligation for any deviation exceeding 5% without objective justification

Penalties and reversal of the burden of proof

The directive provides for effective, proportionate and dissuasive penalties, including fines.

Crucially, the onus will now be on the employer to prove that he has not breached the rules on equal pay and transparency.

Why has pay transparency become a strategic priority?

Since 2022, the question of salaries has once again become central to human resources management. This trend can be explained by a number of factors, such as galloping inflation, high staff turnover and recruitment difficulties.

A powerful lever for employer branding

Salary transparency is a strategic opportunity to boost your attractiveness. Candidates, especially the younger generation, are looking for companies that demonstrate fairness and clarity in their salary policies.

A corporate culture based on fairness will strengthen the trust of your teams and contribute to your employer brand. By communicating openly about your compensation practices, you demonstrate your commitment to professional equality and create a lasting climate of trust.

The link with your CSR policy and collective social protection

Salary transparency is a natural part of a CSR, green HR approach focused on employee well-being. This approach must encompass transparency on fixed remuneration, with clear and accessible pay scales based on objective criteria. And clarity on variable compensation and benefits, with detailed mechanisms for awarding bonuses and additional benefits.

Loyalty and commitment: concrete benefits

Employee commitment is sometimes difficult to measure, which is why it is necessary to carry out regular commitment surveys to be able to feed back concerns linked to (but not limited to) compensation. Establishing this transparency helps to reduce frustrations linked to perceived inequalities, strengthen employee loyalty, improve the social climate and trust, and also facilitate discussions on career development during annual appraisal interviews.

Anticipating difficulties and managing resistance

Transparency can reveal uncomfortable disparities. If transparency does reveal disparities, you'll need to construct clear, precise explanations for these discrepancies, based on objective reasons.

Publishing discrepancies can generate rivalries. To limit these risks :

• Communicate proactively and regularly
• Focus on equity efforts and the continuous improvement process
• Promote corporate culture and collective projects
• Support individual employees who feel they have been wronged

The benefits of salary transparency for your organization

• For the company

Reducing inequalities: transparency highlights discrepancies and forces them to be corrected, thus promoting real equality.

Improved social climate: trust is built up when rules are clear and understood by all.

Optimization of HR time: thanks to a pre-determined salary scale.

Regulatory compliance: anticipate legal obligations and avoid penalties.

• For employees

Greater negotiating power: employees have a factual basis for discussing their remuneration at annual performance reviews.

Career development visibility: the salary scale enables each employee to see where he or she stands, and to anticipate the salary he or she is likely to earn after 5, 10 or 15 years' experience.

Sense of fairness: transparency reduces suspicion and reinforces the feeling of being treated fairly.

• For your employer brand

Attractiveness to talent: transparent companies attract candidates looking for ethical and responsible employers.

Competitive differentiation: you position yourself as a modern, equal opportunity employer.

Improving your CSR image: transparency is part of a global approach to corporate social responsibility.

Pay transparency and social protection: the global approach

Integrate salary transparency into your overall vision of compensation. This approach involves valuing the total salary package, not just the gross salary. Communicate on :

• Group health and welfare plans
• Benefits in kind (luncheon vouchers, company car)
• Employee savings through profit-sharing and incentive schemes
• Training and professional development
• Quality of working life (telecommuting, flexible working hours)

Would you like us to help you achieve pay transparency and rethink your overall remuneration package, including group social protection?

Contact our experts for a personalized diagnosis of your situation.