Pay transparency in France: are you ready for the new requirements?
The European Pay Transparency Directive (Directive (EU) 2023/970) aims to reduce the gender pay gap by increasing transparency around remuneration. Member States were required to transpose this Directive into national legislation by 7 June 2026.
France, however, failed to meet this deadline. Although the country already has various mechanisms in place to promote equal pay, such as the obligation to provide equal remuneration and the Index de l’égalité professionnelle, the formal transposition of the European Directive had not yet been completed by June 2026.
In September 2026, however, the French government submitted a draft bill to transpose the Directive into French law.
The draft legislation provides, among other things, for:
- Greater transparency on salaries during the recruitment process;
- A right for employees to request information on the average remuneration for comparable positions;
- New reporting requirements on pay gaps between men and women;
- Objective and gender-neutral criteria for determining pay and career progression
What obligations does the directive entail?
Employers will be required to be more transparent about salaries, pay policies and pay differences between men and women, and to take corrective action when unjustified pay disparities are identified. In practice, the new obligations can be summarised in six key areas:
1) Transparency in recruitment
- Employers must inform candidates of the salary or salary range for the position in advance.
- Candidates may no longer be asked about their salary history.
2) Clear pay criteria
- Companies must be transparent about the criteria used to determine pay, pay levels and pay progression.
- These criteria must be objective and gender-neutral.
3) Right to pay information for employees
- Employees can request information about their own pay and the average pay levels (broken down by gender) for employees performing the same work or work of equal value.
- Employers must inform employees of this right on an annual basis.
4) Reporting on pay gaps between men and women.
- Large companies (with at least 50 employees) are required to regularly publish indicators on the gender pay gap.
- In France, this is further strengthened through a revamped Gender Equality Index.
5) Action in the event of unexplained pay differences
- When a pay gap of at least 5% between men and women is identified and cannot be objectively justified, the company must, in consultation with employee representatives, carry out a joint assessment and take corrective measures.
6) Stronger remedies for (potential) victims of pay discrimination.
- Employees who are victims of pay discrimination are entitled to full compensation, including back pay, lost benefits, compensation for missed opportunities, and any non-material damage suffered.
- The burden of proof is partially reversed: once an employee can present evidence suggesting discrimination, the employer must demonstrate that no discrimination has taken place.vv
- Authorities may require employers to cease violations and take corrective measures.
The new obligations are not yet fully enforceable as long as the transposing legislation has not been formally adopted. However, companies are already expected to prepare by aligning their pay structures, job evaluation systems and HR data with the forthcoming requirements.
What can employers already do today?
Employers are advised to:
- Conduct a pay gap analysis to identify any pay disparities between men and women. The Directive places strong emphasis on employers' ability to justify pay differences on the basis of objective criteria.
- Classify roles based on objective and gender-neutral criteria, ensuring that positions of equal value are remunerated consistently.
- Document your pay policies and salary structures, including the criteria used for recruitment, promotion and pay increases. Transparency requires employers to be able to explain how pay decisions are made.
- Validate your HR and payroll data to ensure that reporting on pay, gender and job categories can be carried out smoothly once the new requirements come into force.
- Review your recruitment processes, for example by including salary ranges in job advertisements and no longer asking candidates about their salary history.
In summary, organisations that invest today in job evaluation, data quality and transparent pay structures will be significantly better prepared when the French legislation is formally introduced.
Would you like to assess whether your organisation is ready for the new pay transparency requirements? I would be happy to help.