New Transparency Rules, Existing Challenges: How German Companies View the EU Pay Transparency Directive

These questions are explored in the latest “GBP Monitor: Company Trends in July 2026” by the German Business Panel (GBP) at the University of Mannheim, a monthly survey that examines current business trends and economic expectations among German companies. The findings suggest that companies are primarily focused on the practical requirements of implementing the directive, with many still at an early stage of preparation. 

“Many companies initially associate the directive with additional documentation requirements. So far, only a few expect this to actually lead to greater pay equality. This shows that the directive’s goals have not yet taken root in corporate practice,” says Prof. Dr. Jannis Bischof, scientific project manager of the German Business Panel. 

How companies are preparing for the new requirements

The EU Pay Transparency Directive pursues a clear objective: ensuring that women and men receive equal pay for equal work. To achieve this, companies will increasingly be required to provide information about their compensation structures and identify potential gender-related pay differences.

Compensation structures in Germany are often not or only partially standardized and are frequently not communicated extensively, either internally or externally. This is particularly the case among smaller companies, which tend to have less established compensation structures while also being less familiar with the new requirements. 

“The willingness to critically review existing pay structures is not necessarily concentrated in the sectors with the greatest need for action. Precisely where the disparities are most pronounced, we have seen very little additional activity so far,” says GBP project manager Prof. Dr. Davud Rostam-Afschar, interpreting the results.

Among the changes companies anticipate are stronger documentation and greater standardization of compensation structures. More than one-third of companies expect administrative effort to increase, while only a small share anticipate that the directive will contribute to reducing gender pay differences.

Companies’ assessments are linked to broader economic policy perceptions

Companies’ views on the Pay Transparency Directive are influenced not only by its specific requirements. The GBP Monitor shows that broader perceptions of economic policy also play an important role.

Companies that are more satisfied with current economic policy tend to evaluate the directive more positively. In contrast, companies that associate economic policy primarily with additional bureaucracy and economic burdens are more critical of the new regulations.

From transparency to meaningful change

The findings of the German Business Panel highlight a key challenge: The Pay Transparency Directive creates new opportunities to make compensation structures more visible. Whether this will ultimately contribute to greater pay equality depends largely on how companies implement and use the new requirements in practice.

The latest “GBP Monitor: Company Trends in July 2026” provides further insights into the factors shaping companies’ assessments and how businesses are responding to the new requirements.

Further reading

GBP Monitor: Company Trends in July 2026” here (in German)  Learn more about the German Business Panel