Entgelttransparenzgesetz (German Pay Transparency Act)

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

26 April 2026 · Category: Anti-Discrimination Act (AGG) · Compliance-Kit

Practitioner's note: This article is practice-oriented compliance documentation, not legal advice. We are a compliance specialist, not a law firm. For legally binding information please consult a licensed lawyer.

TL;DR

The Entgelttransparenzgesetz (EntgTranspG, in force since 06 July 2017) governs the right to obtain information on employee remuneration in order to promote pay equality between women and men. It will be substantially tightened in 2026/27 by the EU Pay Transparency Directive 2023/970. Currently applicable: right of access from 200 employees onwards, reporting obligation from 500 employees onwards.

What is the Entgelttransparenzgesetz (EntgTranspG)?

The EntgTranspG imposes three principal obligations:

Section 10 EntgTranspG: employees' right of access to comparator pay (from 200 employees onwards)
Section 21 EntgTranspG: report on equality between women and men and on pay equality (from 500 employees onwards, every 3-5 years)
Section 17 EntgTranspG: obligation to review and document pay structures

Reform 2026/27: EU Directive 2023/970 requires adjustments: thresholds 100/150/250, a stricter reversal of burden of proof (Article 18), median comparison, Joint Pay Assessment where the pay gap is at least 5 %. The German transposition is delayed — most likely not before 2027.

Practical example

Current position for a company with 350 employees: - Right of access under Section 10: comparator pay must be disclosed where at least 6 employees of the same sex perform comparable work - No report under Section 21 (only from 500 employees onwards) - 2027 reform: annual reporting from 250 employees onwards (likely), mandatory salary range in job postings from 6/2026

Frequently asked questions

What does the EU Pay Transparency Directive change?

A stricter reversal of burden of proof (Article 18, stricter than Section 22 AGG), median comparison (already recognised by BAG 8 AZR 488/19), a job posting obligation for ALL employers, and Joint Pay Assessment from 5 % onwards.

When will the German reform enter into force?

As of 04/2026, it is delayed. A ministerial draft is expected in Q3/2026. Application of the right of access is expected on 1 January 2027; reporting obligations from 7 June 2027 (250+ employees).

Does the EU Directive apply absent national transposition?

In part, yes, by way of priority of application. With direct effect from 7 June 2026: the job posting obligation, the prohibition of the salary history question, and the right of access. Not the reporting obligations (which require implementing measures).