Germany faces EU penalty over gender pay gap directive

Published 13 June 2026 · europe

Germany was required to incorporate the EU Pay Transparency Directive into its national law, but it has missed the deadline. Many people continue to earn

Germany was required to incorporate the EU Pay Transparency Directive into its national law, but it has missed the deadline. Many people continue to earn less than others for the same job — often because of their gender. This is illegal, but difficult to prove. The EU Pay Transparency Directive, which takes effect across the European Union this month, is supposed to help make sure workers earn equal pay for the same job. The new rules are designed to put more pressure on employers to ensure there is equal pay within their workforce. But Germany — the EU's largest, strongest, and most populous economy — has missed the June 7 deadline to implement the directive. Women in medicine — the pay and power gaps To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Gender pay gap remains in Germany The pay gap between men and women in Germany remains an issue despite legal requirements to eliminate it. According to the German Federal Statistical Office, the adjusted gender pay gap was 6% in 2025, with women earning less than men in the same position and with the same qualifications. The EU Pay Transparency Directive was introduced "to strengthen the application of equal pay for equal work or work of equal value between men and women through pay transparency and enforcement mechanisms." Once it takes effect, the idea is that employees should be able to request information to find out whether they are being paid unfairly for equivalent work and employers will be required to eliminated unjustified pay gaps.

The law relies on three mechanisms: The right to request information, gender pay gap reporting for larger companies, and joint pay assessments. Women in medicine — the pay and power gaps To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video German government bill 'does not go far enough' On May 6, the German government approved a bill to amend the General Equal Treatment Act (AGG) on the recommendation of German Education Minister Karin Prien, whose portfolio includes women's affairs, and Justice Minister Stefanie Hubig. The aim was to incorporate the EU's requirements into German law. "This is an important step toward putting our commitment to greater equality and effective action against discrimination into practice," said Prien. However, she attracted accusations that she had caved to the business lobby with her warning to "not place an unnecessary burden on government agencies and businesses and to keep procedures as simple as possible." "The most important change is that anyone affected by discrimination will now have four months, rather than two, to decide whether they want to assert a claim according to the AGG," said Hubig as she presented the amendment. But this has apparently not convinced the European Commission. The EU's Pay Transparency Directive requires transparency as early as the application process, obliges employers to take corrective action in cases of significant pay gaps, and shifts the burden of proof from the employee to the employer.