Hiring employers, international and domestic, may have heard of the EU Pay Transparency Directive. Although the EU Pay Transparency Directive does not apply directly to UK-only employers, it reflects an emerging international standard for fair, transparent and inclusive employment practices.

The Directive aims to strengthen equal pay for equal work by increasing transparency throughout the recruitment and employment lifecycle.

We encourage employers posting recruitment opportunities to consider adopting elements of the Directive as good practice to support fair recruitment, improve workforce trust, enhance diversity and inclusion outcomes, and strengthen their employer brand.

‘UK employers should routinely publish salary ranges in all job advertisements and recruitment materials as a minimum standard of good practice.’

This single measure delivers immediate benefits for candidates and employers alike, supports fairer recruitment outcomes, and aligns with the direction of travel established by the EU Pay Transparency Directive.

This is an advisory and example of best practice; it doesn't frame pay transparency as an EU requirement that UK employers "should comply with", but rather as a strategic talent, equity and employer-branding opportunity.

Our recommendations

We encourage UK employers to adopt salary transparency as standard practice by publishing salary ranges in all job advertisements. This simple step supports fair access to opportunities, enables informed career decisions, broadens talent pools, and demonstrates a commitment to equality and inclusion.

Employers are encouraged to:

Publish salary ranges for all advertised roles.
Avoid requesting salary history from candidates.
Communicate clear pay progression pathways.
Regularly review pay equity outcomes.
Promote open and transparent conversations about reward and progression.

Collectively, these actions contribute to a fairer and more inclusive labour market.

Salary information in job advertisements

We recommend that employers should include either:

A specific starting salary; or
A realistic salary range

within all job advertisements.

Salary information should be sufficiently detailed to enable candidates to assess before applying.

Benefits include:

More diverse applicant pools
Reduced risk of pay disparities arising from salary negotiations
Improved candidate experience
Greater confidence in recruitment processes

Suggested approach examples:

"Salary: £35,000 - £40,000 per annum depending on experience and demonstrated skills."

"Starting salary: £38,000 per annum with progression opportunities through the organisation's salary framework."

Avoid requests for salary history

While this is less relevant for those recruiting first degree graduates, employers should avoid asking candidates to disclose previous earnings during recruitment processes.

Instead, hiring decisions should be based on:

Skills
Qualifications
Experience
Market benchmarks
Objective assessment criteria

Salary history can unintentionally perpetuate historical inequalities and contribute to ongoing pay gaps. The EU Directive specifically prohibits salary-history enquiries during recruitment.

Prepare for questions about how pay is determined

Employees and candidates should have access to clear information about:

Salary structures
Pay progression arrangements
Promotion criteria
Performance-related pay mechanisms

Transparency regarding pay decisions helps build trust and supports perceptions of fairness across the workforce.

Regularly review pay equity

Employers are encouraged to undertake periodic reviews of pay practices to identify and address potential disparities.

Reviews may consider:

Gender
Ethnicity
Disability
Other protected characteristics

These can inform workforce planning, reward strategies and equality objectives.

The EU Directive introduces enhanced pay gap reporting and assessment requirements where significant unexplained gaps exist, reflecting a growing expectation that employers actively monitor pay equity rather than respond only to complaints. Whilst a useful steer, remember: the EU Pay Transparency Directive does not apply directly to UK-only employers.

Fostering a culture of openness

This helps foster a Culture of Openness

Employers should support constructive discussion about pay and career progression by:

Training managers on fair pay practices
Providing employees with information about salary frameworks
Encouraging evidence-based conversations about development and progression

Open communication can improve employee engagement and trust while reducing misconceptions about pay decisions.

Why this matters

Adopting transparent pay practices can help employers:

Attract a wider and more diverse talent pool
Reduce recruitment costs and inefficiencies
Demonstrate commitment to equality, diversity and inclusion
Strengthen employee confidence and retention
Align with emerging international employment standards

While these measures are currently voluntary for most UK employers, they represent an opportunity to lead on fair employment practices and prepare for a labour market increasingly focused on transparency, accountability and equity.

The EU Pay Transparency framework requires employers to provide information on initial pay levels or salary ranges before interview and prohibits reliance on previous salary history. Whilst a useful frame and guide, the EU Pay Transparency Directive does not apply directly to UK-only employers.

UK specific advice on minimum wage: The National Minimum Wage in 2026 - GOV.UK

Careers employer guide to salary and pay transparency

We encourage UK employers to adopt salary transparency as standard practice by publishing salary ranges in all job advertisements.