Salary secrecy has an expiration date. Starting in June 2026, Spain will begin implementing one of the most significant labor equality reforms in recent years: the obligation to publish salary ranges in job offers and within companies. This reform stems from the adaptation of European Directive 2023/970, a binding regulation aiming to eliminate the gender pay gap across the European Union.
The idea is simple, yet ambitious: no one should earn less for doing the same job, and pay should no longer be a grey area. No more questions about a candidate’s previous salary or confidentiality clauses preventing employees from discussing their wages. What was once a taboo will now become a right.
What does the new regulation mean?
The new law will apply to both public and private companies in different phases depending on their size, and will be rolled out progressively until 2031. Key measures include:
- Mandatory inclusion of salary ranges in job postings, from the first interaction with the candidate.
- Ban on asking about previous salaries during interviews, to avoid past pay conditioning current offers.
- Employees’ right to access average salary data for their role, broken down by gender and justified with objective criteria.
- Elimination of salary confidentiality clauses in employment contracts.
This new legal framework aims to end a widespread practice that has fed inequality for decades, especially affecting women. According to recent EU data, women earn 13% less than men for the same roles. The directive seeks to correct this at the root: the lack of transparency.
Implementation timeline
The law establishes a gradual rollout based on company size:
- Companies with more than 250 employees → must comply by June 7, 2027
- 150–249 employees → by June 2028
- 100–149 employees → by June 2031
- Fewer than 100 employees → not legally required yet, but strongly encouraged
This phased approach gives businesses time to adjust their compensation systems and internal HR processes accordingly.
How will this affect the job market?
Publishing salaries will trigger not only a cultural shift, but a strategic one. Companies will need to review their pay policies to avoid unjustified discrepancies and define clear, objective criteria for evaluations, promotions, and raises.
This change could also become a powerful talent attraction tool. New generations value transparency and ethical commitment, and knowing the salary up front may significantly influence whether a candidate applies.
It’s also expected to reduce turnover, by eliminating frustration caused by perceived (or real) wage inequality among peers. And of course, it will require greater professionalization within HR departments, which must now be able to justify each salary band with objective, auditable arguments.
Toward a fairer labor market
This shift toward transparency won’t come without resistance. Some companies see it as a threat to internal freedom or fear conflicts among employees. But Europe’s direction is clear: pay equity is non-negotiable. And the organizations that embrace this transformation will be the ones leading the change — strengthening their reputation, internal culture, and social responsibility.
In a labor market that is increasingly competitive, diverse, and values-driven, pay transparency is not just a matter of legal compliance. It’s an opportunity to build companies that are more honest, coherent, and ultimately, more human.
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