Pay transparency is a complete game-changer in the field of recruitment

What Do Companies Need to Know in 2026?

Although the deadline for implementing Directive (EU) 2023/970 was June 7, 2026, Romania has not yet adopted the national transposition law. The Ministry of Labor has published a draft law on pay transparency, but the publication of a draft does not equate to its adoption and entry into force. Therefore, in the absence of this domestic legislation, the Directive does not currently impose direct obligations on Romanian employers.

Nevertheless, pay transparency is no longer just a European trend; it is becoming a reality that is transforming the way companies recruit, communicate, and develop their internal compensation policies. Companies in the local market must prepare well in advance, as pay equity will very soon become a mandatory requirement rather than merely an option.

What does pay transparency mean in recruitment?

It is important to clarify that the law does not require employers to list the salary directly in the job posting. The actual requirement is that the salary or salary range be communicated to the candidate before the first interview, through any agreed-upon communication channel (email, text message).

At the same time, employers:

• Can no longer request the candidate’s salary history
• Must provide clear and objective criteria for setting salaries
• Must ensure that job postings and recruitment processes are gender-neutral
• Must be able to justify salary differences between employees in similar roles

Why is pay transparency important?

The directive aims to reduce unjustified pay gaps, particularly between women and men. In many companies in Romania, pay scales have been developed over time through individual negotiations, exceptions, and ad hoc adjustments, which has led to discrepancies that are difficult to justify. Experts point out that the real challenge is not disclosing salaries, but documenting the criteria underlying pay differences.

What is the impact on recruitment processes?

• Recruitment is becoming more competitive and transparent. Candidates will have access to salary information before the interview, which reduces inefficient negotiations and increases trust in the process.
• Employer branding is becoming more important than ever. Companies that communicate transparently will attract talent more easily.
• Internal audits are becoming mandatory. Organizations must review their pay scales, promotion criteria, and compensation policies.
• Reporting obligations are tied to company size. Companies with more than 100 employees will have additional reporting obligations regarding the gender pay gap.

Strategic Advantages for Employers

Beyond the technical aspects, implementing these measures brings real long-term benefits:

• More efficient recruitment processes and candidates better aligned with the job’s budget
• Reduced risk of administrative disputes and complaints from candidates or employees
• Increased trust and retention within the team
• Alignment with European standards of fairness and compliance

From Obligation to Opportunity

Pay transparency is not just a legal obligation; it is an excellent opportunity for companies to modernize their processes, become more competitive, and build an organizational culture based on fairness and trust.