The End of Salary Secrecy in Recruitment
One of the most revolutionary changes introduced by EU Directive 2023/970 is the requirement to provide salary ranges to job candidates. This ends the era of postings with enigmatic “salary commensurate with experience” or “attractive compensation.”
What Exactly Does the Directive Say?
According to Article 5 of Directive 2023/970, employers must provide candidates with information about initial pay or its range (salary bands) based on objective, gender-neutral criteria.
This information must be provided:
- In the job posting, OR
- Before the job interview, OR
- In another way before salary negotiations
Why Are Salary Ranges So Important?
For Candidates
- Time savings – you don’t apply for positions outside your budget
- Better negotiating position – you know the range you can work within
- Level playing field – all candidates have the same starting information
- Reducing the pay gap – women won’t start from a lower baseline
For Employers
- Better-matched candidates – only those accepting the offered level apply
- Shorter recruitment process – fewer negotiations, faster decisions
- Employer branding – transparency builds trust
- Legal compliance – avoiding fines and disputes
How to Properly Define Salary Ranges?
Step 1: Market Analysis
Research what competitors offer for similar positions. Use salary reports, recruitment portal data, and your own experience.
Step 2: Internal Consistency
Check how new ranges relate to salaries of current employees in similar positions. Avoid situations where new hires earn more than existing staff.
Step 3: Objective Criteria
Justify the range spread with objective factors:
- Experience level
- Scope of responsibility
- Required certifications/qualifications
- Location (if it affects cost of living)
Step 4: Realistic Range
Ranges shouldn’t be too narrow (0-5%) or too wide (over 50%). The optimal range is usually 15-30%.
Examples of Proper Salary Ranges
✅ Good practices:
- “Salary: €4,000 – €5,000 gross per month”
- “Hourly rate: €40-50 net + VAT (B2B contract)”
- “Range €6,000 – €7,500, depending on experience”
❌ Wrong approach:
- “Salary: €2,500 – €7,500” (too wide a range)
- “From €4,000” (no upper limit)
- “Salary negotiable” (no specific ranges)
Additional Ban: Asking About Salary History
The directive also introduces a ban on asking candidates about their current or previous salary. Employers cannot:
- Ask about earnings at previous companies
- Require disclosure of current salary
- Make offers dependent on candidate’s pay history
How to Prepare Your Company?
- Review job postings – add salary ranges to all job offers
- Train recruiters – new rules for conducting interviews
- Update ATS systems – fields for ranges, blocking salary history questions
- Internal communication – inform hiring managers about changes
Summary
Mandatory salary ranges are a change that requires preparation but benefits both sides of the recruitment process. Companies that implement pay transparency earlier will gain a competitive advantage in the labor market.
Next article in the series: “Salary Transparency in Job Postings – Practical Guidelines”
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Frequently Asked Questions
When do mandatory salary ranges come into effect under EU law?
EU Directive 2023/970 requires member states to transpose the pay transparency requirements into national law, with mandatory salary ranges in job postings taking effect from 2026. Employers must provide candidates with information about initial pay or its range before salary negotiations begin.
Can employers still ask candidates about their previous salary?
No, the directive explicitly bans asking candidates about their current or previous salary history. Employers cannot make offers dependent on a candidate’s pay history, and recruitment processes must be updated to comply with this requirement.
What is considered an appropriate width for a salary range in a job posting?
The optimal salary range spread is typically between 15% and 30% of the base figure. Ranges that are too narrow (under 5%) leave no room for experience differentiation, while excessively wide ranges (over 50%) defeat the purpose of transparency and may raise compliance concerns.
How should companies prepare their internal systems for pay transparency?
Companies should conduct a market analysis to benchmark salaries, review internal pay equity to ensure new ranges align with existing employee compensation, train recruiters on the new rules, and update applicant tracking systems to include range fields while blocking salary history questions.