Transposition status
Checked on 15 September 2026- GermanyDraft bill pending
According to the federal government, preparatory work was completed in July 2026, but no draft bill has been published yet. Media reports point to a law in 2027. Until then, the 2017 Pay Transparency Act applies.
Sources: Bundestag, 16 July 2026 · Bundestag, 9 September 2026 · taz, 1 June 2026 · EntgTranspG
What applies today: the Pay Transparency Act
The EntgTranspG prohibits direct and indirect discrimination on grounds of sex for equal work or work of equal value (Section 3). Equal value depends among other things on the nature of the work, training requirements and working conditions (Section 4).
- Individual right to information in establishments with, as a rule, more than 200 workers (Sections 10 and 12).
- Invitation to carry out internal pay audits for private employers with, as a rule, more than 500 workers (Section 17).
- Report on equality and equal pay for employers with, as a rule, more than 500 workers that must prepare a management report (Section 21).
What changes with transposition
The Directive goes considerably further than current law:
- A right to information for all workers regardless of establishment size, with a response within two months.
- Starting pay or a pay range before the interview and a ban on asking about previous pay.
- Reporting on the gender pay gap from 100 workers – the current Section 21 report only applies to large employers required to prepare a management report.
- Joint pay assessment for unjustified gaps of 5% or more.
- Compensation without an upper limit, burden of proof on the employer and fines.
Status of the legislative process
A commission set up by the Federal Ministry of Education, Family Affairs, Senior Citizens, Women and Youth presented proposals for a low-bureaucracy transposition in November 2025. According to specialist reports, a majority recommends not extending reporting beyond the EU minimum standard of employers with 100 or more workers, basing reporting on actual pay and providing digital tools and templates.
In July 2026, the federal government stated that preparatory work on a draft bill was complete and individual questions were still being clarified; the legislative process would only start afterwards. According to taz (June 2026), a law is only planned for 2027. Statements on content remain provisional until a draft is published.
Case law: the pair comparison
On 23 October 2025, the Federal Labour Court held (8 AZR 300/24) that to presume sex-based pay discrimination it is sufficient for a female worker to show that her employer pays a higher wage to a male colleague performing equal or equivalent work – even if there are several such colleagues. A predominant probability of discrimination is not required; the employer must rebut the presumption.
For employers this means: pay differences between comparable jobs already need a documented, gender-neutral justification today.
What employers in Germany should do now
The missing transposition postpones the obligations, but not the preparation. Building the data foundation for reports and information requests takes months. It makes sense to:
- Evaluate jobs consistently and build categories of workers doing equal work or work of equal value.
- Capture pay data completely, including variable components.
- Run a trial calculation of pay gaps per category and justify or correct differences.
- Prepare job postings for pay ranges and set up the information request process.
Frequently asked questions
Has Germany transposed the Pay Transparency Directive yet?
No. The deadline expired on 7 June 2026 and no draft bill has been published yet. Until a new law is adopted, the 2017 Pay Transparency Act applies.
Does the information right under the EntgTranspG still apply?
Yes. Until transposition it applies in establishments with, as a rule, more than 200 workers. The Directive provides for a right to information regardless of establishment size.
Should employers act before the new law?
Yes. Federal Labour Court case law already sets strict requirements for justifying pay differences, and building job evaluation and the data foundation takes months.
Sources
- Directive (EU) 2023/970 – EUR-Lex
- German Pay Transparency Act (EntgTranspG) – gesetze-im-internet.de · §§ 3, 4, 10, 12, 17, 21
- German Bundestag, 16 July 2026
- German Federal Ministry (BMBFSFJ), 7 November 2025: commission final report
- KPMG Law: recommendations of the expert commission
- taz, 1 June 2026
- German Federal Labour Court, 23 October 2025 – 8 AZR 300/24
Not legal advice. The content is based on Directive (EU) 2023/970 as of the update date shown; specific obligations follow from national transposition.