Imaginary Job Interview in a Pay-Transparent Country

Imaginary Job Interview in a Pay-Transparent Country – EU Legislation to Eliminate the Gender Pay Gap! – Part 2

Exciting times lie ahead for employees – and perhaps slightly more challenging ones for employers – as a new wave of EU employment regulations takes shape. As discussed in our previous article, the Pay Transparency Directive aims to eliminate the gender pay gap so that equal work or work of equal value receives equal pay. While last time we explored the Directive’s background and objectives, this time we invite readers to a fictional job interview set in a country where pay transparency is already part of everyday life and employees truly sit at the table as equals. Our guide will be Réka, who is applying for a position as a cleaner.

Transparent job advertisements
Réka’s story begins in August 2026. She feels her work is not properly appreciated, so she starts looking for new opportunities. Previously, she would browse job advertisements in confusion: salary information was usually missing, and often she had to indicate what pay she expected. Now, however, something has changed. Every advertisement shows the amount of the starting salary or at least the possible pay range. This alone is a major step forward, Réka can now save a great deal of time by applying only for jobs that meet her expectations. She feels she is being treated as a partner, and compared to her previous interviews, she now finds herself in a much more balanced negotiation position. She no longer feels pressured to keep her salary expectations low merely to remain competitive.

Many advertisements also state that the pay level has been determined on the basis of objective, gender-neutral criteria. Although Réka initially receives such statements with skepticism, she appreciates that detailed and transparent information is available to her even before she applies. Some employers even specify that a collective agreement applies to the position, something she has never seen before. Réka begins to wonder whether she has stepped into a world where the information asymmetry between employer and employee is truly beginning to decrease.

She also notices that job titles such as “cleaning lady” have disappeared, replaced by “cleaning staff,” “facility cleaner,” or “hygiene associate.” These gender-neutral formulations send an important message: employers are consciously trying to avoid gender stereotypes, even in their language.

The all-deciding job interview
Armed with this information, Réka arrives at her interview with confidence. She is excited to see whether the promises in the job advertisement will hold true in practice. The HR representative and the employer’s authorized representative reassure her that the advertised pay range is real and that they will not offer less than the lower limit of that range. Réka negotiates confidently and finally manages to agree on a salary that is 10% higher than the top of the range. She is surprised to learn that this does not violate any rules, the pay range is indicative, not restrictive. The HR representative emphasizes that the goal is a transparent but flexible pay policy that protects the bargaining position of both parties.

At the end of the interview, Réka feels satisfied: she was treated fairly and as an equal. Only later does she realize that no one asked her about her current or previous salary, a question the employer is not even entitled to ask. This small but significant change feels liberating: for the first time, she could negotiate her pay without her past earnings standing in her way.
Although Réka’s story is fictional, similar cases could very well become reality once the national laws based on the Directive come into effect.

What employers must do to ensure pay transparency during recruitment
The Pay Transparency Directive places the process of recruitment and selection in the European Union on new foundations. The legislator’s aim is clear: even before the establishment of the employment relationship, a transparent and discrimination-free environment must be created in which employees start under equal conditions. Employers must therefore adapt to the Directive’s requirements at several points even before employment begins. The most important of these is that applicants must receive clear information about the expected pay already at the application stage. This means that the job advertisement or the early phase of the selection process must indicate the exact amount of the starting salary or at least its range, and this must be determined on the basis of objective, gender-neutral criteria. The principle of equal pay for equal work thus applies not only during employment but already when entering the labour market.

It is at least as important that job advertisements contain gender-neutral wording, avoiding any phrasing that would associate the position with a particular gender. The Directive further provides that the employer may not ask about the applicant’s previous salary, either directly or indirectly. This prohibition serves to prevent unjustified differences in pay, since if the future offer is not based on past – possibly gender-related – differences, there is a greater chance of genuinely equal treatment.

The principle of pay transparency also requires that the employer work with clear, pre-established pay-setting and evaluation criteria. The basis for job evaluation – such as responsibility, professional experience, performance, or the complexity of the position – must be accessible and clear to both applicants and employees. If a collective agreement is in force at the company, its provisions applicable to the position must be communicated during the recruitment process.

Overall, the Pay Transparency Directive does not merely impose new administrative obligations on employers; it requires a new approach. The emphasis is on transparency, objectivity, and equal opportunity. Employers who already prepare for the introduction of the rules – for example, by reviewing their pay systems and job advertisements – will not only comply with EU expectations but may also appear as more attractive and trustworthy employers on the labour market.

Thus, pay transparency is not only a legal obligation but can also represent a long-term competitive advantage: a sign that the employer consistently enforces transparent and non-discriminatory pay practices.