Pay transparency: revolution in Germany by 2026!

Pay transparency: revolution in Germany by 2026!

On February 21st and 22nd, 2025 took place at the Bucerius Law School the 17th Eias Annual Conference will take place. This event was dedicated to the relevant topic of pay transparency and pay equality, especially in the context of the new EU Pay Transparency Directive, which must be implemented into German law by summer 2026. The German Labor Court Association was a partner of this conference, which aimed to promote discussion about gender equality in the work context.

The one-day conference began with opening reports from experts in European labor and social law. PD Dr. Stefan Witschen from the University of Cologne spoke about labor law, while Antonia Seeland, LL.M. from the Hugo Sinzheimer Institute in Frankfurt am Main, which illuminated aspects of social law. These reports formed the basis for an in-depth analysis of the current legal situation.

Relevance of the EU directive

The Directive (EU) 2023/970, which came into force on June 6, 2023, aims to strengthen the principle of equal pay for men and women. In particular, it is intended to promote the principles of pay transparency and the enforceability of employee rights. The directive applies to equal work or work of equal value and affects not only the EU member states, but also the European Economic Area (EEA).

The expansion of information rights and reporting obligations ensures that employers with companies with more than 100 employees are obliged to report on gender-specific pay gaps. Furthermore, if a pay gap of at least 5% is identified, employers must take measures to eliminate it.

German perspectives and comparative legal analyses

German perspectives were also discussed during the conference. Prof. Dr. Adam Sagan from the University of Bayreuth and Dr. Christiane Padé, judge at the Federal Social Court, highlighted the challenges in implementing the new regulations from the perspective of labor and social law. The international perspective was supported by contributions from Francis Delaporte, President of the Luxembourg Administrative Court, and Melanie R. Hack, Ph.D. from the University of Bergen, who analyzed the legal situation in Luxembourg and Norway.

A panel discussion followed that brought together various perspectives on this pressing issue. Roland Wolf from the Confederation of German Employers' Associations represented the company's point of view, while Isabel Eder from the German Federation of Trade Unions brought in the unions' point of view. Furthermore, Prof. Dr. Jutta Allmendinger from the Humboldt University of Berlin and RA Dr. Doris-Maria Schuster from Gleiss Lutz provides insights from a sociological and legal perspective.

The organizers thanked all speakers, the advisory board and the teams who were responsible for the successful implementation of the event. The advisory board included well-known personalities such as Dr. Hauke ​​Rinsdorf, Inken Gallner and Barbara Geiger. Miriam Jobst took over the organization in cooperation with Bucerius Education GmbH. The conference was supported by the Hamburg Association for Labor Law, while Sven Störmann worked as a photographer.

The upcoming implementation of the EU directive into German law may require increased state control of remuneration systems and a more comprehensive assessment of remuneration structures in the German labor market. Experts agree that employers urgently need to adapt their remuneration systems and information processes to meet the new requirements of the directive. The event in Hamburg represented an important step in this direction.