- EU pay transparency directive takes effect, Germany missed deadline.
- Germany’s 6% gender pay gap persists; its new bill insufficient.
- EU Commission may initiate infringement proceedings against Germany.
Many people continue to earn less than others for the same job — often because of their gender. This is illegal, but difficult to prove. The EU Pay Transparency Directive, which takes effect across the European Union this month, is supposed to help make sure workers earn equal pay for the same job.
The new rules are designed to put more pressure on employers to ensure there is equal pay within their workforce. But Germany — the EU’s largest, strongest, and most populous economy — has missed the June 7 deadline to implement the directive.
Gender pay gap remains in Germany
The pay gap between men and women in Germany remains an issue despite legal requirements to eliminate it. According to the German Federal Statistical Office, the adjusted gender pay gap was 6% in 2025, with women earning less than men in the same position and with the same qualifications.
The EU Pay Transparency Directive was introduced “to strengthen the application of equal pay for equal work or work of equal value between men and women through pay transparency and enforcement mechanisms.” Once it takes effect, the idea is that employees should be able to request information to find out whether they are being paid unfairly for equivalent work and employers will be required to eliminated unjustified pay gaps.
The law relies on three mechanisms: The right to request information, gender pay gap reporting for larger companies, and joint pay assessments.
German government bill ‘does not go far enough’
On May 6, the German government approved a bill to amend the General Equal Treatment Act (AGG) on the recommendation of German Education Minister Karin Prien, whose portfolio includes women’s affairs, and Justice Minister Stefanie Hubig. The aim was to incorporate the EU’s requirements into German law.
“This is an important step toward putting our commitment to greater equality and effective action against discrimination into practice,” said Prien. However, she attracted accusations that she had caved to the business lobby with her warning to “not place an unnecessary burden on government agencies and businesses and to keep procedures as simple as possible.”
“The most important change is that anyone affected by discrimination will now have four months, rather than two, to decide whether they want to assert a claim according to the AGG,” said Hubig as she presented the amendment. But this has apparently not convinced the European Commission.
The EU’s Pay Transparency Directive requires transparency as early as the application process, obliges employers to take corrective action in cases of significant pay gaps, and shifts the burden of proof from the employee to the employer. In future, employers will have to provide evidence that they are acting according to the law.
Will Germany receive a warning letter from Brussels?
“As soon as it is established that a member state has failed to implement a directive, the Commission can initiate infringement proceedings,” Matthias Ruffert, a lawyer and professor at Berlin’s Humboldt University, told DW by email. “But it is not required to do so.” He added that in the case of a procedure going ahead, a member state would receive a letter of formal notice, which could be followed by a reasoned opinion.
Then, according to Elie Cavigneaux of the German Institute for International and Security Affairs (SWP), the affair could escalate. “If the European Commission still fails to file a suit, the European Parliament can sue the Commission for inaction.”
So Germany could in theory receive a warning letter from Brussels, and it would not be the first time. The European Commission has stepped in before when Germany failed to incorporate EU directives into national law on time or did so incorrectly.
The most severe case to date related to the matter of whistleblower protection. In 2025, Germany was fined €34 million ($39 million) after failing to implement a 2019 EU directive to protect whistleblowers that was supposed to be incorporated into national law by 2021. Germany’s Whistleblower Protection Act only took effect in 2023.
Commission likely to try to reach an agreement with Berlin
“Since the Treaty of Lisbon, the Commission has been able to request the imposition of a penalty payment for failure to transpose directives at the same time as filing an infringement action,” said Cavigneaux. “The European Court of Justice establishes the exact starting date for payments in its judgment and determines the amount of the penalty.”
“However, before filing a lawsuit, the Commission regularly attempts to reach an agreement with the member state in question so the directive can be implemented as quickly as possible,” she explained. “Essentially, failure to implement a directive on time will not automatically or immediately result in a ruling against the federal government.”
This article was originally published in German.
(Disclaimer: This report first appeared on Deutsche Welle, and has been republished on ABP Live as part of a special arrangement. Apart from the headline, no changes have been made in the report by ABP Live.)
