The legislation aims to promote transparency around wages and reduce gender pay gaps across the EU, with significant implications for recruitment, internal equity, and compliance processes.

Job search portal Profession.hu notes that the directive will require companies to disclose salary information for open positions before job interviews and prohibit employers from asking applicants about their previous earnings. New hires will also have the right to request information about the average salary of colleagues performing the same or equivalent work—including a breakdown by gender and explanations for any differences.

These rights will apply to existing employees as well, making internal compensation structures more visible than ever. While the specific details of how the directive will be transposed into Hungarian law remain unclear, experts advise companies to begin internal assessments and develop action plans well in advance.

“This is a significant shift, and companies that don’t have a clear picture of their internal pay structures or a documented strategy in place may face challenges,” the speakers concluded on the latest episode of Profession.hu’s Backstage podcast, which examined the directive’s potential impact. Employers are being encouraged to map out internal pay discrepancies, assess compensation packages by position, and prepare financially and strategically for necessary adjustments.

The directive sets binding goals, but each member state has flexibility in how it legislates the details. In Hungary, this means the exact legal format is yet to be confirmed—including whether salary disclosures must list specific figures or allow for ranges. Nevertheless, more employers are recognizing the benefits of transparency in recruitment.

“More and more employers feel that both they and job seekers benefit from disclosing salary data,” said Imre Tüzes, product development director at Profession.hu. “In 2023, about 20% of job ads on our platform included pay information. Today, that figure is closer to 25%. Publishing salary data for a position can increase the number of applicants by up to 50% and streamline hiring, as it becomes clear early on whether there’s a match in expectations—pay remains the most important factor for job seekers.”

Larger companies will face the strictest requirements. Those with more than 250 employees will be obligated to report annually on pay disparities by gender within equivalent roles. Smaller firms will need to report every three years. If wage gaps exceed 5%, companies must jointly assess the causes with employee representatives and propose corrective measures.

The European Commission cites data showing that, on average, women in the EU earn 13% less per hour than men. The directive aims to narrow this gap and foster more equitable compensation systems, while also pushing companies to rethink how they define, communicate, and justify pay.

As implementation approaches, Hungarian employers are advised to act early—building pay structures, conducting audits, and preparing for open dialogue with employees around equity and fairness.