Pay Transparency: What Companies in Austria Can Expect

Background

The gender pay gap in the EU was around 12% in 2023, and 18.3% in Austria.
Possible causes include gender stereotypes, unequal distribution of care work, and a lack of transparency.

Which companies are subject to pay reporting requirements?

• From 250 employees: first report by 7 June 2027, then annually
• 150–249 employees: first report by 7 June 2027, then every three years
• 100–149 employees: first report by 7 June 2031, then every three years
• Companies with fewer than 100 employees are not subject to reporting obligations, but they must provide information individually upon request.

Within national implementation of this EU Directive, Member States may introduce stricter rules. Austria has not yet transposed the Directive; the deadline expires in June 2026.

Pay transparency prior to employment

Applicants have the right to receive information on the starting salary or salary range for the advertised position, based on objective, gender‑neutral criteria. This information may be provided, for example, in the job posting, before the job interview, or through other suitable means.

Job postings and job titles must also be formulated in a gender‑neutral manner. Employers will no longer be permitted to ask applicants about their previous salary or salary development, nor to proactively obtain such information.

Transparency during the employment relationship

Employers must develop remuneration structures that ensure that no unjustified pay differences between women and men exist for equal or equivalent work. Pay structures must be designed in a way that enables an assessment—based on objective, gender‑neutral criteria—of whether employees are in a comparable situation regarding the value of their work. These criteria must be applied consistently and without discrimination; in particular, social competences must not be systematically undervalued.

Employers must provide employees, upon request, with information on their own pay level as well as average values of comparable groups.
From 50 employees onward, employers must additionally disclose the criteria used for determining and developing pay.

Joint pay assessment in case of a 5% gap

If an employer with at least 100 employees reports a pay gap of at least 5% and cannot provide a objective, gender‑neutral justification for that gap, a “joint pay assessment” must be conducted together with the workers’ representatives. This joint assessment should result in concrete corrective measures.

Enforcement and sanctions

• In proceedings concerning pay discrimination, the burden of proof shifts to the employer once a plausible presumption of discrimination exists—especially if the employer has not fulfilled its transparency obligations.
• Employees may claim compensation, including back pay, related benefits, and non‑material damages; a blanket cap is not permitted.
• Effective, proportionate, and dissuasive sanctions are envisaged, including fines that may be based, for example, on annual turnover or total wage expenditures.
• Employees and their representatives are protected against victimisation, such as dismissal or other disadvantages, when they assert their rights or support others in doing so.

How companies can prepare now

1.    Review remuneration structures

1. Analyse existing salary bands, allowances, and bonuses with regard to possible systematic differences between women and men.
2. Introduce or adapt gender‑neutral job evaluations based on the criteria of competencies, demands, responsibilities, and working conditions (definition of equal or equivalent work and creation of groups).

2.    Define transparent criteria for pay and pay development

1. Document the criteria used to determine starting salaries, salary increases, and variable remuneration components.

3.    Adjust recruiting processes

1. Review job postings for gender‑neutral wording.
2. Make salary bands or starting salaries transparent in job postings or during the recruitment process.

4.    Prepare for information, disclosure, and reporting obligations

How Forvis Mazars can support you

• Readiness assessment: We work with you to assess your current position and identify the steps you still need to take. We support you in prioritising actions and minimising risks.
• Job evaluation: We assist in conducting job evaluations and grouping employees based on objective criteria.
• Calculation of indicators: We support you in collecting data and calculating the required indicators. Where the gender pay gap exceeds 5%, we recommend suitable and effective measures and—if necessary—review your recruitment and talent‑development processes.
• Communication strategy: Successful implementation of pay transparency requirements requires careful and strategic communication, both internally and externally. Taking into account your corporate culture and communication channels, we help you design consistent and targeted communication.
• Training: If needed, we provide training for your leaders so they can confidently communicate remuneration decisions and principles.