Austrian Employers Must Act Now as EU Pay Transparency Rules Take Effect Without National Law
Published on 07/10/2026 at 15:09 | Redaktion boerse-global.de
Workers in Austria can already demand details on how their salaries are set and what colleagues earn by gender, even though the government failed to transpose the EU Pay Transparency Directive into national law by the June 7, 2026 deadline. The Austrian Chamber of Labour (Arbeiterkammer, AK) and the Equal Treatment Ombuds Office (Gleichbehandlungsanwaltschaft) held a press conference in Vienna on July 10, 2026 to clarify the immediate consequences for employers and employees.
Austria’s gender pay gap stands at 17.6 percent, far above the European Union average of 11.1 percent. The directive aims to close that gap, and because national legislation is missing, the EU rules apply directly in many areas. Companies have to comply right now.
What Employers Must Do Immediately
During recruitment, businesses must disclose the starting salary or a salary range before the interview. Asking candidates about their previous earnings is now prohibited. For existing staff, employees have the right to request information on how pay scales are determined and the average income of a comparable group, broken down by gender. Employers must respond within two months. They are also required to inform their workforce about this right annually.
Larger organisations face staggered reporting obligations starting in 2027:
- Companies with more than 250 employees: annual reports from 2027.
- Companies with 150 to 249 employees: reports every three years from 2027.
- Companies with 100 to 149 employees: reports every three years from 2031.
If a report shows a gender pay gap exceeding five percent that cannot be objectively justified, the employer must conduct a joint pay evaluation with worker representatives. Small businesses are exempt from these reporting duties for now.
Legal experts point out one major caveat: full compensation for discriminatory pay cannot be claimed in court until the directive is transposed into national law. The AK and the ombuds office are pressing parliament to pass legislation quickly to create legal certainty for all sides.
Opposition to Bureaucracy, Call for Fair Wages
Employer representatives have warned that the rules will add administrative burden. The employee side argues transparency is essential for equitable pay.
Broader Labour Market and Consumer Reforms
On July 9, 2026, the Austrian government introduced a separate labour market reform package. It proposes extending fixed-term contracts without a specific reason to a maximum of 48 months, valid until the end of 2030. The package also includes changes to severance payments for high earners and higher tax-free overtime bonuses.
In consumer protection, the Nationalrat passed a law on July 7, 2026 requiring companies to offer a cancellation button for online purchases starting October 1, 2026. Extended information obligations take effect at the end of September 2026.
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