France: Transposing the EU Pay Transparency Directive at last

Employer Action Code: Monitor

The Ministry of Labor has shared draft legislation to transpose the EU Pay Transparency Directive (2023/970) with the social partners, with further consultations scheduled for March 19. The draft generally follows the text of the directive but, in doing so, would significantly add to existing protections in some areas, such as mandatory gender pay gap reporting under the existing Gender Equality Index. It is also highly unlikely that France will meet the June 2026 deadline for transposition, which could affect gender pay gap reporting one year after the law is published. France had an unadjusted gender pay gap of 11.8% as of 2024 compared with the EU average of 11.1% (Eurostat data).

Key details

• Pay transparency during recruitment: Employers would be prohibited from inquiring about pay history, including current pay, and publishing job offers that do not include estimates of salary ranges for the position and relevant collective bargaining agreement (CBA) provisions on determining pay for the position. Information on salary ranges would have to be provided in job ads; where no job ads are posted, ranges would have to be provided in writing, before or during job interviews. Contractual clauses restricting employee disclosure of pay would likewise be prohibited
• Employee right to request: Employees would have the right to information on their individual pay level and average pay levels for workers performing the same work or work of equal value broken down by gender. Where disclosure would risk identifying individual pay levels, information would not be disclosed, and employee representatives would act as intermediaries
• Pay gap reporting: The Gender Equality Index, applicable to companies with 50 or more employees, would be replaced by a set of gender-based pay gap indicators as defined by the EU directive reported annually or every three years depending on number of employees and indicators. In the event of pay gaps (above a threshold defined by decree), employers would be required to justify the differences on non-gender-based factors or develop measures to close the gap. Companies with 50 to 99 employees must integrate corrective measures into mandatory negotiations where thresholds are exceeded. Companies with 100 employees or more are subject to enhanced consultation, justification, corrective action and potential joint pay assessments. Employee representatives and employees may request explanations. Where unjustified gaps persist after six months, employers must negotiate a three-year collective agreement or adopt an action plan
• Pay structures: Categorization of employees performing work of equal value would be established by company agreement or leverage industry CBAs. In the absence of a company or industry agreement, employers could establish job categories unilaterally after consulting the Social and Economic Committee. Negotiations should be agreed and signed before December 31, 2026. The definition of work of equal value would also be expanded to include non-technical skills and working conditions   

The directive would also reverse the existing burden of proof on pay. Rather than the employee having to prove that the employer violated the rules on pay transparency, the employer would have to prove that it has not violated the rules.

Employer implications

Employers should monitor the legislative process closely. As noted above, the bill is a working draft to be discussed with social partners. Further changes and refinements are to be expected but are unlikely to be hugely different. The government is still in the process of developing provisions in the bill for the public sector. While the deadline for transposing the directive will probably be missed, it is expected to be signed into law by the end of 2026.

Contacts

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Laura Grouberman

Director, Work, Rewards & Careers

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Jade Bonneront

Senior Associate, Work, Rewards & Careers

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