Germany: little uptake of the law on salary transparency

Germany’s law on remuneration transparency (c.f. article No. 10143) that came into force in July 2017 sought to narrow the country’s gender pay gap, which at 21%, is one of the highest in Europe (the EU average is 16%). Driving this legislation is a requirement on employers to be completely transparent, with women able to compel them to align their salaries with those of their male counterparts. At the time the legislation was designed it faced a great deal of resistance across business and even within government. It also included a provision for a follow-up assessment after two years. This evaluation has now been completed and a few days ago the Ministry for Families, Seniors, Women, and Youths published the results of the review study that it commissioned a legal firm and a consultancy firm to carry out. According to this first official review very few have exercised their right to access remuneration information.