Equal pay for equal work: An overview of the Pay Transparency Act

The question of fair pay concerns many employees. Women are particularly affected.

The Pay Transparency Act (EntgTranspG) was introduced in 2017 to create transparency in pay matters and ensure that men and women are paid equally for work of equal value. Statistics explicitly show that income differences between men and women continue to exist in Germany. The so-called “adjusted gender pay gap” alone is still around 6% when factors such as professional experience, industry and working hours are taken into account.

What rights does the EntgTranspG give?

The law offers employees in certain companies several opportunities to better assess their salary situation:

• Right to information: employees in companies with more than 200 employees can obtain information on the salary structures of comparable positions. The median salary of other employees is communicated anonymously.
• Audit obligations for larger companies: Employers with more than 500 employees are required to regularly review their pay structures and report on equality measures.
• Equal treatment requirement: Employers are obliged to pay employees the same for the same work or work of equal value, regardless of gender.

How does the right to information work?

If you suspect that there is a pay inequality, you can submit a request to your employer or - if available - to the works council, subject to the above conditions. They must provide you with information about the salary criteria and comparative pay for the relevant positions. The information will be anonymized to ensure data protection.

Outlook: The EU directive on pay transparency

In addition to the Pay Transparency Act, the topic of pay equity will continue to develop in the coming years. EU Directive 2023/970 on pay transparency must be transposed into German law by June 2026 and provides for even more far-reaching measures to combat pay discrimination.

The key innovations include

• Rights to information regardless of company size: in future, employees should also be able to obtain information about salaries in smaller companies.
• Salary information in job advertisements: Companies must already provide information on salary ranges in job advertisements.
• Reporting obligations: Employers with 100 or more employees must publish regular reports on the gender pay gap.
• Stricter burden of proof rules: Employers must prove that there has been no discrimination in the event of breaches of the directive.

The implementation of this new directive will significantly expand the legal framework in Germany and place an even stronger focus on transparency and fairness. The Pay Transparency Act is an important building block in ensuring equal pay for equal work or work of equal value.

If you have any questions about your rights or need support, we will be happy to help you enforce your claims.