Yes, if non-EU businesses employ people who work in an EU member state, they need to follow the EU pay transparency rules that apply there. These rules apply based on where people work, rather than where a firm has its main office. Any firm with staff in the EU is expected to follow these standards by June 2026.
Determine if a company needs to obey pay transparencyÂ
Non-EU employers can determine if these rules apply when they look at where their staff do their work. If a worker works from an EU country, the non-EU company faces pay transparency rules. This is true even if the company does not have a physical site in that country.
Common groups that must face the rules
- Non-EU firms that hire staff directly in an EU country.
- Companies that use a local EU branch to hire and pay staff.
- Companies that hire for remote roles tied to an EU area.
What employers are mandated to do
EU member states are compelled by the EU to pass national laws with the Pay Transparency Directive by June 2026. After that, companies that fall under these rules must:
- Share pay levels or ranges in job ads.
- Stop asking candidates about what they earned in the past.Â
Workers gain the right to ask for data on how their pay compares to the average for their role. Firms that meet size limits must also report pay gaps.
How to prepare as a non-EU employer
HR teams have to put together clear pay bands and note down how they set pay for every role. They must also set up a way to handle requests for pay data from staff. It helps to work closely with payroll and legal teams to make sure all records are complete. Firms can check the EU whistleblower directive rollout plan to see how other EU rules might affect them.
TL;DR
- Non-EU firms with staff in the EU must follow the EU's pay transparency rules for employees who work from an EU country.Â
- The rules apply based on where a person works, not where the firm has its main office.
- Companies will have to share pay ranges in job ads and answer EU worker requests for pay data.