German gov't fails to implement EU-law on salary transparency

Federal Minister of Family Affairs Karin Prien (CDU) has criticised the new EU law aimed at closing the gender pay gap in Europe through transparency measures. In a Politico podcast, Prien called the policies "too bureaucratic". 

Prien spurns EU pay transparency law

The policy, first agreed upon in 2023, was supposed to be implemented by all member states by June 2026. The German government has been delaying the law’s integration into national policy, calling for further rounds of voting. Germany's inaction may subject the country to legal proceedings by the EU Commission. 

While Minister Prien called the policy's objective of wage equality in Germany desirable, she said it “does not fit into the environment” of efforts to reduce bureaucracy for German firms, reports the Tagesschau.

She explained that Germany was in conversation with neighbouring countries to negotiate content and implementation deadlines, in an attempt to sway the EU in their plans. Prien admitted to having little faith in convincing the EU Parliament and Commission. So far, there has been no progress with either body: “At the end of the day, we probably won’t get around a bureaucratic implementation,” said Prien. 

Transparency to fight the gender wage gap

The EU Council adopted the new policies on salary transparency in April 2023. The policy would require companies operating in the EU to publish salary figures and take measures if the wage gap between men and women surpasses 5 percent. In the event of a violation, victims will be compensated, and employers will face fines. 

In Germany, women on average get paid 15,6 percent less than men. Across the EU, the same figure sits at 11,1 percent, states the Handelsblatt.

In the past, the SPD has accused the CDU of deliberately delaying the implementation of the EU policy.