EU's Pay Transparency Law Enacted by Germany
The European Pay Transparency Directive, aimed at promoting pay equity and transparency, is yet to be fully implemented in Germany. The German government has taken initial steps towards compliance, but many details are still pending.
One of the key tools developed for employers is the www.eg-check.de, a job evaluation tool created by the Federal Anti-Discrimination Agency and the Hans-Böckler-Foundation, in accordance with the 2017 Pay Transparency Act. Employers can use this tool to perform the necessary job evaluations under the Act.
However, further details about the methodology and tools for assessing "equal value" are still awaited. Similarly, the pay elements included and excluded from the definition of pay remain unclear.
The implementing legislation for the EU Pay Transparency Directive is expected to be an amendment to the current Pay Transparency Act 2017. The legislative process is scheduled to begin in 2025, with the transposition into German law coming into force before June 2026.
Trade unions and works councils are anticipated to be applicable as worker representatives. The proposed legislation may also provide for some form of representation to be set up where no worker representatives are in place.
The Directive will likely include part-time, fixed-term, temporary agency workers, managers, and atypical workers such as zero hours, trainees, and apprentices. However, it is unclear what pay elements will be included and excluded from the definition of pay.
The details about the measures to be introduced to align with the Directive, including the requirements for a joint pay assessment and enforcement mechanisms, are still awaited. It is also uncertain what pay elements will be included and excluded from the definition of pay.
The German Pay Transparency Act 2017 does not contain specific sanctions; further options enabling the monitoring body to put pressure on employers may be added with the implementing legislation. No information is available as to whether an update or another tool is planned for the Directive.
Existing employer guidance for the 2017 Pay Transparency Act exists, but it is unclear whether this will be updated or expanded to include information on compliance with the Directive. The Directive's criteria may challenge categories in existing Collective Bargaining Agreements (CBAs).
Germany plans to implement other EU directives such as the Data Act (effective from September 12, 2025) through a federal implementation law defining authorities and procedures. The CER directive (RL EU 2022/2557) implementation is delayed beyond the original October 2024 deadline, with a new draft law under consultation as of September 2025 aiming for prompt adoption. The NIS2 directive implementation law is expected by the end of 2025 or early 2026, expanding obligations to more companies including those in mechanical engineering.
No draft legislative proposal is currently available regarding the requirements for transparency for job applicants under the Directive. Furthermore, details about the methodology and tools for assessing "equal value" are still awaited.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Stopping Osteoporosis Treatment: Timeline Considerations
- Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan
