The implementation deadline for the EU Pay Transparency Directive expired on June 7, 2026 without Germany having adopted a national implementing law. The German implementing law is currently expected to enter into force in early 2027. The key reporting obligations for organizations and the individual right to information are expected to become applicable for the first time in June 2028.
Many employers are now faced with a crucial question: wait and see, or take action already?
What Happens Next?
The clear answer is that simply waiting is generally not advisable. In many respects, the delay does not amount to a postponement of the new legal framework.
Although EU directives generally become fully effective only through national implementation, i.e. through a German law, important exceptions exist under EU law. Of particular relevance is the distinction between public and private sector employers.
Public Sector Employers
For public sector employers and entities attributable to the state, the Directive generally has direct effect from 8 June 2026 following the expiry of the implementation period, including the information obligations and the requirements relating to remuneration criteria.
Private Sector Employers
The legal situation in the private sector is more nuanced. While directives generally do not have direct horizontal effect between private parties, this does not mean that private companies can simply “wait and see”.
First, the principle of equal pay for equal work or work of equal value already applies directly through Article 157 TFEU and German anti-discrimination law. Second, German courts are required to interpret existing national legislation, as far as possible, in conformity with EU directives.
As a result, the current German Pay Transparency Act (Entgelttransparenzgesetz) is likely to be interpreted more strongly in light of the European requirements. Particular attention will be paid to the current scope of the right to information and the existing threshold of more than 200 employees.
In practice, this means that adjustment pressure is already emerging even in the absence of a German implementing law.
Need for Action: Prepare now
Companies should therefore use the remaining time to prepare their remuneration structures and internal processes. This includes in particular:
- Defining and documenting objective remuneration criteria
- Reviewing recruitment and hiring processes
- Establishing internal procedures for handling information requests
- Analyzing gender pay gaps
- Building robust data structures and governance mechanisms
Practical experience from comparable regulatory projects demonstrates that organizations which wait for the final German implementation legislation often face significant operational time pressure.
Our Approach: Forward-Looking, Practical and Defensible
We are already advising public and private sector employers on implementing the requirements of the Pay Transparency Directive, particularly in relation to:
- Information rights and internal processes
- Designing transparent remuneration structures
- Identifying and assessing equal pay risks
- Establishing reporting and documentation systems
- Governance and compliance frameworks
- Strategic risk assessments
We would be pleased to support you in gaining clarity at an early stage and developing practical solutions tailored to the specific needs of your organization.
June 8, 2026
