GBP Monitor July: More Bureaucracy Than Pay Equity – Companies Skeptical of the EU Pay Transparency Directive

Türkisfarbene Mappen liegen auf einem schwarzen Tisch. Die Mappe haben die weiße Aufschrift "SFB/Transregio 266, Accounting for Transparency".

Although the deadline for transposing the EU Pay Transparency Directive into national law expired in June 2026 and key transparency requirements generally apply to all companies, only about one in five companies has so far taken a closer look at the new regulations. At the same time, only a small minority believes the directive will achieve its actual goal: reducing the pay gap between women and men. Instead, many companies primarily expect additional administrative burdens. This is shown by the July survey conducted by the German Business Panel (GBP) at the University of Mannheim.

The EU Pay Transparency Directive is intended to ensure that women and men receive equal pay for work of equal value. Unlike the previous German Pay Transparency Act, the transparency requirements will apply regardless of company size. In addition, new reporting requirements regarding gender-based pay gaps will be phased in for companies with 100 or more employees.

The latest survey by the German Business Panel examines how German companies view these new requirements and what changes they expect.

A key finding: The assessment of the directive is closely linked to the evaluation of current economic policy. Companies that are satisfied with the federal government’s economic policy also view the directive much more positively. Conversely, companies that primarily associate economic policy with obstacles to growth and additional bureaucracy are also more likely to reject the directive. For example, 54 percent of those dissatisfied with economic policy oppose the new requirements.

Link to the press release

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