The EU directive on salary transparency, applicable from 2026, requires employers to disclose salary information, promoting equal pay.

The European Directive 2023/970, which will come into force in Romania in 2026, fundamentally changes labor relations by eliminating salary confidentiality. Employees will have the right to request information about their salaries and compare them, and companies will need to adjust their salary scales based on objective criteria.

Non-compliance with the directive can lead to costly litigation for employers, who will be responsible for proving salary equity.

Additionally, employers will be required to communicate salary ranges in recruitment announcements.

The directive also imposes reporting obligations for companies with over 100 employees, regarding gender pay gaps.

Preparing companies for these changes is essential, and failure to adapt can lead to severe penalties.

Romania must transpose the directive into national legislation by June 2026, and delays may trigger infringement procedures from the EU. Other European countries, such as Belgium and Finland, have already implemented salary transparency measures, demonstrating positive effects on organizational structures.