Directive (EU) 2023/970 on pay transparency was adopted on 10 May 2023 and entered into force at EU level in June 2023 and required Member States to transpose it into national law by 7 June 2026. Luxembourg is therefore under an obligation to implement the Directive into domestic employment law. However, as of late June 2026, the Luxembourg transposition process still appeared to be pending, with the subject being discussed at parliamentary committee level rather than already reflected in a final implementing law.

The purpose of the Directive is clear: to make the principle of equal pay for equal work, or work of equal value, capable of practical enforcement. The reform is not limited to abstract equality language. It requires employers to organise remuneration in a manner that can be explained, evidenced and, if necessary, defended.

The most immediate changes concern recruitment and internal pay transparency. Candidates must be informed of the initial pay level or pay range for a position, either in the vacancy notice or before the interview. Employers will also be prohibited from asking candidates about their previous remuneration. Once employed, workers will have a right to request information on their individual pay level and on average pay levels, broken down by sex, for comparable categories of workers.