Entgelttransparenzgesetz (German Pay Transparency Act)

The German pay transparency statute — reform through EU Directive 2023/970

26 April 2026 · Category: AGG · Compliance-Kit

TL;DR

The German Pay Transparency Act (EntgTranspG, in force since 6 July 2017) governs the right to obtain information on employee remuneration in order to promote equal pay between women and men. A tightening of the rules through the Pay Transparency Directive (Directive (EU) 2023/970) is still outstanding: its transposition deadline (7 June 2026) has passed, and as at 17 August 2026 no German transposition act was in place; according to BT-Drs. 21/7026, the lead federal ministry has made the preparations for a bill. Currently applicable: the right to information in establishments with, as a rule, more than 200 employees, and the reporting obligation for employers with, as a rule, more than 500 employees that are required to prepare a management report.

What is the Entgelttransparenzgesetz (German Pay Transparency Act)?

The EntgTranspG has three core instruments:

§ 10 EntgTranspG: employees' right to information on comparative pay (in establishments with, as a rule, more than 200 employees)
§ 21 EntgTranspG: report on equality between women and men and on equal pay (employers with, as a rule, more than 500 employees that are required to prepare a management report, every three or five years)
§ 17 EntgTranspG: private employers with, as a rule, more than 500 employees are called upon (not obliged) to review their pay rules regularly by means of in-company review procedures

Reform through Directive (EU) 2023/970: it requires adjustments: reporting thresholds of 100/150/250 workers (Art. 9), a shift of the burden of proof to the employer (Art. 18), disclosure of the median gender pay gap in the report (Art. 9), and a joint pay assessment (Art. 10) where the report shows a pay gap of at least 5% in a category of workers that is neither justified by objective criteria nor corrected within six months.

Practical example

Currently, for a company with 350 employees:

Right to information under § 10: the comparative pay figure is disclosed only where at least 6 employees of the other gender perform the comparable activity (anonymity threshold)
No report under § 21 (only with, as a rule, more than 500 employees)
Under Directive (EU) 2023/970: an annual report on the pay gap, for the first time by 7 June 2027 (Art. 9(2)), and information for applicants on the starting pay or its range, for example in the job advertisement or before the job interview (Art. 5(1)) — both binding only once the German transposition act applies

Legal position: Germany and Austria

The Pay Transparency Directive (Directive (EU) 2023/970) applies equally in Germany and Austria and had to be transposed into national law by both Member States by 7 June 2026 (Art. 34(1)); as at 17 August 2026 neither country had a transposition act in place. The national starting position differs, however: Germany governs information and reporting obligations in the EntgTranspG, while Austria anchors equal pay in the Austrian Equal Treatment Act (GlBG).

Germany

Equal pay requirement (§ 3, § 7 EntgTranspG): for equal work or work of equal value, no lower pay may be agreed or paid on grounds of gender.
Right to information (§§ 10–12 EntgTranspG): in establishments with, as a rule, more than 200 employees; the average comparative pay (statistical median) is disclosed only where the comparable activity is performed by at least six employees of the other gender.
Reporting obligation (§ 21 EntgTranspG): for employers with, as a rule, more than 500 employees that are required to prepare a management report under §§ 264, 289 HGB; employers bound by or applying collective agreements every five years, all others every three years (§ 22 EntgTranspG).
Competent bodies: employer/works council and the labour courts; Federal Anti-Discrimination Agency (Antidiskriminierungsstelle des Bundes).

Austria

Equal pay requirement (§ 11, § 3 no. 2 GlBG): company grading rules and norms of collective agreements must observe the principle of equal pay for equal work or work of equal value in their remuneration criteria; pay must also not be set in a way that discriminates on grounds of gender.
Gender-neutral job advertisements (§ 9, § 10 GlBG): a position may not be advertised for men only or for women only, unless a particular gender is an indispensable requirement of the activity; recruitment agents are fined up to EUR 360 for breaches, while employers receive a formal caution for a first breach and are fined up to EUR 360 only for further breaches (§ 10(1) and (3) GlBG).
Competent bodies: Ombud for Equal Treatment (GAW) and the Equal Treatment Commission (Gleichbehandlungskommission); labour and social court.

Frequently asked questions

What does the Pay Transparency Directive change?

A shift of the burden of proof to the employer (Art. 18), disclosure of the median gender pay gap in the report (Art. 9), a right of job applicants vis-à-vis all employers to information on the starting pay or its range — for example in the job advertisement or before the job interview (Art. 5(1)) — and a joint pay assessment (Art. 10) where a pay gap of at least 5% in a category of workers is not justified and not corrected within six months. These obligations become binding only with the national transposition act.

When does the German reform enter into force?

No date has been set. According to the Federal Government's reply of 8 July 2026 (BT-Drs. 21/7026), the lead federal ministry has made the preparations for a bill and is still clarifying individual questions; the legislative procedure is to be initiated thereafter. The Directive itself provides for first reporting by employers with 150 or more workers by 7 June 2027 (Art. 9(2) and (3)).

Does the EU Directive apply without national transposition?

Not directly vis-à-vis employers. The Directive is addressed to the Member States (Art. 34(1)) and binds employers only through national transposing law — even after the transposition deadline has expired. Until then, the information and reporting obligations of the EntgTranspG continue to apply in Germany.