In 2026, the European Directive on Salary Transparency will come into effect, marking an important milestone in promoting equality and fairness in the European labor market. 

This directive, approved in June 2023, requires Member States to transpose measures into their legislation aimed at increasing salary transparency and combating wage discrimination, especially between men and women. We are at the beginning of 2025, and although there is only one year left until its implementation, many challenges still need to be overcome.

What does the directive foresee?

The directive requires European companies to adopt salary transparency practices, namely:

• Disclosure of salary information before recruitment, including the salary range for the position;
• Workers' right to obtain information about salary levels within the company, disaggregated by gender;
• Obligation for companies with more than 250 employees to conduct regular salary audits;
• Prohibition of salary confidentiality clauses that prevent workers from discussing or sharing information about their salaries.

The Portuguese Reality

A recent study by Mercer Portugal revealed that 40% of Portuguese companies admit not being familiar with the directive or its legal implications. This situation is concerning, considering that salary transparency is one of the key tools to reduce gender pay disparity, which in the European Union is around 13%.

According to labor law experts, the lack of awareness of the directive represents a significant risk of non-compliance, which could result in severe penalties for companies. Beyond the legal implications, salary transparency plays a crucial role in creating a fairer work environment, where workers' trust is strengthened.

Challenges for Companies

Among the main challenges identified, the following stand out:

• The lack of preparation by companies to disclose salary ranges clearly;
• The need for internal adjustments to ensure wage equality between men and women;
• The corporate culture still marked by a high level of secrecy regarding compensation.

Human resources managers warn that many organizations still view salary transparency as a bureaucratic imposition rather than an opportunity to attract and retain talent.

Benefits of Salary Transparency

In addition to ensuring legal compliance, salary transparency offers several benefits:

• Promotes gender equality by reducing salary disparities;
• Increases worker trust and job satisfaction;
• Improves the corporate image, making the company more attractive to talent.

The Role of Lawyers in the Transition

Law firms play a crucial role in supporting companies through this transition. From reviewing contracts and internal policies to conducting salary audits, it is essential that organizations seek specialized legal advice.

According to the Bar Association, "the directive represents a paradigm shift, requiring companies to adopt a more proactive approach in promoting equality." The Bar also warns that "non-compliance could result in financial and reputational sanctions, affecting the sustainability of organizations."

With only one year until the implementation of the European Directive on Salary Transparency, it is crucial for companies to begin the adaptation process. In addition to complying with the legislation, salary transparency is an opportunity to build a fairer and more attractive labor market. Timely preparation, with the support of qualified professionals, will be decisive in facing the challenges and seizing the benefits of this new era in the world of work.