EU Pay Transparency Law Takes Effect, but Most States Not Ready

A landmark European Union directive on pay transparency took effect on 7 June 2026, granting every worker across the bloc the right to know the average salaries of colleagues performing the same work. The law, formally known as Directive (EU) 2023/970, represents the most significant EU-level intervention on equal pay since the principle was enshrined in the Treaty of Rome in 1957. Yet, despite three years to prepare, only three member states — Italy, Slovakia, and Lithuania — have fully transposed the rules into national law.

What the Directive Requires

The directive introduces sweeping changes to how pay is handled across the EU. Employers must now disclose salary ranges in job postings and are banned from asking candidates about their previous salaries — a practice critics say perpetuates historical pay discrimination. Workers can request gender-disaggregated average pay data for colleagues in similar roles, and in discrimination cases, the burden of proof shifts to employers, who must demonstrate that no discrimination occurred. Companies with 100 or more employees face mandatory reporting obligations on gender pay gaps, with high fines for non-compliance.

According to VRT NWS, the directive was approved by 22 of 27 member states and 427 of 582 MEPs in 2023. The EU’s gender pay gap stood at 11.1% in 2024, according to Eurostat, meaning women earned on average 11.1% less per hour than men.

Belgium Requests Extension

Belgium, where the directive has particular political resonance, is among the majority of member states that missed the deadline. In a letter sent to the European Commission on 2 June, Vice-Premier and Minister of Employment David Clarinval (MR) and Minister for Equal Opportunities Rob Beenders (Vooruit) formally requested a six-month extension.

The ministers cited stalled negotiations between social partners in the National Labour Council, where talks broke down in April after employers walked away. As The Brussels Times reported, the letter included 30 unanswered questions concerning data protection under GDPR, the scope of pay to be taken into account, and the directive’s retroactive application.

Clarinval highlighted a specific tension between pay transparency and privacy rules. “It is impossible to reconcile the two,” he told Het Laatste Nieuws, pointing to the example of a construction company with mostly male employees and only two women, where sharing averages by gender could effectively reveal individual salaries.

Despite these concerns, Clarinval stated he is “100% committed to the goal of reducing the gender pay gap” and called implementation “very important,” urging the Commission to “step out of its bubble and provide concrete answers, otherwise we will not be able to apply the directive.”

Employer Resistance and the ‘Stop the Clock’ Campaign

The directive faces headwinds from organized business interests across Europe. Business Europe, the continent’s largest employer umbrella organization, launched a ‘Stop the clock’ lobbying campaign in February 2026, arguing the directive imposes “too heavy administrative obligations” and creates “legal uncertainty.”

Pieter Timmermans, CEO of the Federation of Enterprises in Belgium (FEB/VBO), welcomed the government’s extension request. As L’Européen de Bruxelles reported, Timmermans said: “The FEB fully supports the objective of equal pay for equal work, but it has always emphasised that the EU Pay Transparency Directive constitutes an excessive administrative burden: not only is it disproportionate for businesses, but it will not even be effective.”

Sweden has gone further, informing the Commission in March that it would not transpose the directive and calling for a new proposal altogether.

Commission Stands Firm

European Commissioner for Equal Opportunities Hadja Lahbib (MR, Belgium), whose portfolio includes overseeing implementation, has pushed back against calls for delay or revision. Responding to a parliamentary question from N-VA MEP Kris Van Dijck, Lahbib confirmed the Commission does not plan to include the directive in any future regulatory simplification package, as documented by the European Parliament. She described the directive as “essential for the full realisation of the right to equal pay for men and women.”

A Commission spokesperson pointed to a study by the European Institute for Gender Equality showing that gender equality could boost EU GDP by 6.1% to 9.6% by 2050. “Transparent pay is also good for employers: clear and fair remuneration helps attract talent and keep staff motivated,” the spokesperson said.

The Belgian Pay Gap Debate

A complicating factor in Belgium is the contested nature of the country’s own gender pay gap. Eurostat data puts Belgium’s gap at just 0.7% — the second lowest in the EU after Luxembourg. However, the Belgian Institute for Equality of Women and Men calculates the gap at 7%, using a broader methodology that includes part-time work and sectoral segregation.

This statistical dispute has fueled political divisions within Belgium’s coalition government. N-VA and MR have expressed sympathy for employer concerns about administrative burden, while Vooruit and other left-leaning parties push for faster implementation. MP Axel Ronse (N-VA) has advocated suspending the rules until Europe addresses the “larger problem of competitiveness.”

What Happens Next

While the directive is now in effect as a matter of EU law, its practical impact depends on national transposition. The Commission is unlikely to launch immediate infringement proceedings against non-compliant states — such processes typically take months. Belgium has requested until December 2026 to complete its homework.

The broader political context is uncertain. The ‘Stop the clock’ campaign may gain momentum if more member states join Sweden’s call for revision. Yet sources within the Commission suggest the directive enjoys strong support from President Ursula von der Leyen and the many female Commissioners in her team, making a rollback unlikely.

For now, the directive stands as a test case of the EU’s ability to balance ambitious social policy with growing demands for competitiveness and administrative simplification. Workers across Europe have gained a new right — but in most countries, including Belgium, they may need to wait a little longer before they can effectively exercise it.