The way we approach salary in Europe is about to change, and it’s going to change quite a lot.
With the 7 June 2026 transposition deadline now behind us, the time of keeping compensation within borders (both geographic and internal) is slowly disappearing. And honestly, for many organisations, that might feel like crossing a border without the right paperwork.
For Global Mobility, this is not just a small update in payroll or policy. It will influence how we hire people, how we structure packages, and how employees experience their move to Europe.
What is actually changing?
The directive (2023/970) is there to reduce the gender pay gap and create more openness around pay.
By June 2026, all EU countries will need to implement it. In practice, this means:
- Salary ranges need to be shared before hiring, sometimes already in the job posting
- Employers cannot ask about previous salary
- Employees can request insight into pay levels for similar roles
- Companies with more than 100 employees need to report on pay gaps
- If there is a gap of more than 5% without a clear explanation, action is required
So overall: less guessing, more explaining.
What does this mean for Global Mobility?
1. From flexibility to explanation
In Global Mobility, we are used to being flexible. Adjusting packages, finding solutions, doing what is needed to make a relocation happen and the employee happy. That flexibility will not completely disappear, but it will need a clear story behind it. If there are differences in salary or benefits, we need to be able to explain why in a structured and objective way. Not only internally, but also if someone asks.
2. Local vs international employees
It is very normal that international employees have different packages. Think about housing, schooling, cost of living. But under this directive, these differences become more visible. Which means the question becomes: Can we clearly explain that this is related to the assignment, and not just “extra”? If that story is not clear, it can create internal discussions and also risk from a compliance perspective.
3. Less room for ad hoc decisions
The “let’s figure it out on a case by case-basis” approach will become more difficult.
To reduce risk, policies need to be clearer and more consistent:
- Defined structures for allowances
- Clear reasoning behind benefits
- Documentation when something is different from the standard
So still human, but less improvised.
4. Candidates expect more transparency
People relocating to Europe are becoming more aware.
They will expect:
- A clear salary range
- Transparency on how a package is built
- A feeling that things are fair
If this is not there, they might simply choose another company that is more open and transparent. Especially for younger generations, this is not a ‘nice to have’ anymore, but something they really expect.
What can companies do now?
Now that we’re in 2026, this is no longer something for later. It’s something to act on now.
Some good first steps:
- Review current compensation structures
- Compare international employees with local peers
- Align Global Mobility, HR and Reward teams
- Define clear criteria for salary and benefits
- Look at how you communicate this to employees
- Ask the question within the organisation if this needs to be looked at
Because this is not only about rules: it’s also about clarity.