Pay Transparency Laws: A Complete Guide for Global Compliance

Sreyashi Chatterjee

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Published:

January 22, 2025

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Picture this: Your company just posted a job opening for your Berlin office, and a candidate asks about the salary range. Meanwhile, your team in California is legally required to include pay ranges in job postings, but your New York office has different rules entirely.

Sound confusing but familiar?

Pay transparency is no longer optional in many parts of the world.

As new laws emerge across the US, EU, and beyond, HR teams face the challenge of navigating complex requirements while maintaining consistent global practices.

Whether hiring in Colorado or Copenhagen, understanding and complying with pay transparency laws has become essential for modern HR operations.

That’s exactly what we will discuss in the article, so buckle up!

What is Pay Transparency Law?

A pay transparency law requires employers to share compensation information openly, typically in one of three ways: including salary ranges in job postings, disclosing pay information to job candidates during hiring or sharing pay ranges with current employees.

Consider Susan, an HR director at a tech company. When posting a new software engineer role, she must include the salary range ($120,000-$150,000) in states like California and Colorado. But it's more than just posting numbers — she needs to ensure the range is realistic and based on factors like experience, location, and market rates.

Typically, you need to comply with transparency laws for:

Making hiring processes more equitable by preventing pay discrimination
Helping job seekers make informed decisions about opportunities
Promoting fair pay practices within organizations
Reducing wage gaps based on gender, race, or other factors

The scope of required transparency varies by location.

Some laws only require sharing pay ranges upon request, while others mandate including detailed compensation information (including bonuses and benefits) in every job posting.

Remote work has added another layer of complexity, as employers must often comply with laws based on where their employees work, not just where the company is based.

Why do Pay Transparency Laws Matter?

Think of a time when you applied for a job and went through multiple interviews, only to discover the salary was far below your expectations.

Frustrating, right?

That's just one of the many reasons pay transparency laws have gained momentum globally.

For employees

Pay transparency creates a more level playing field. When Maria, a marketing manager in Washington state, sees explicit salary ranges in job postings, she can focus on roles that match her experience and expectations. She doesn't waste time interviewing for positions that can't meet her salary requirements, and she has more power to negotiate fairly.

For employers

While some companies initially hesitate about sharing salary information, many find unexpected benefits. These benefits could include:

Shorter hiring cycles because candidates self-select based on posted ranges
More qualified applicants who know their worth aligns with the position
Improved trust and retention among current employees
Reduced risk of pay discrimination claims

For society:

The impact extends beyond individual workplaces. According to research performed by Wiley, pay transparency initiatives reduced the gender pay gap by approximately 4.37% through increased female earnings, while male earnings remained constant.

How do Pay Transparency Laws Work?

Pay transparency laws typically operate on three key levels that require employers to provide compensation information at different stages of employment:

Job postings and applications

Most laws require employers to include salary ranges in job postings. For example, under Washington state law, employers with 15 or more employees must list the salary range and a general description of benefits in each posting.

In Massachusetts, starting July 2025, employers with 25 or more employees must disclose salary ranges in job postings and for internal promotions.

During employment

Some laws mandate transparency for current employees.

In California, employers must:

Provide pay scales to current employees upon request
Maintain records of wage and job title history for each employee for 3+ years
Disclose salary ranges for internal promotions or transfers

Reporting requirements

Laws often include broader reporting mandates. For instance:

In the EU, companies must inform employees of pay criteria and how their salary compares to others in similar roles
UK employers with 250+ employees must publish annual gender pay gap reports
Companies in Colorado must notify all current employees of promotion opportunities

One key finding shows these transparency laws' effectiveness: research from Canada found that pay transparency requirements alone can close the gender pay gap by 20-40%.

However, experts note that accurate equity requires transparency around total compensation, including benefits, which account for approximately one-third of total compensation in America.

Get Our Detailed Guides on Pay Transparency Laws - By Countries

Navigating pay transparency laws across different countries can be complex, as requirements and implementation timelines vary significantly by jurisdiction. Whether you're a multinational corporation or a growing business expanding globally, understanding these regional variations is crucial for compliance and effective HR planning.

Here's a comprehensive breakdown of pay transparency regulations in key markets worldwide. Each guide provides detailed information about current requirements, upcoming changes, and practical steps for compliance.

Select your country of interest to learn more:

Get Our Detailed Guides on Pay Transparency Laws - By US States

As pay transparency gains momentum across the United States, keeping track of state-specific requirements has become increasingly important for employers.

Here's a state-by-state breakdown of current pay transparency laws to help you ensure compliance, whether you're hiring in a single state or managing a multi-state workforce:

How does Compport Help Organizations to Achieve Pay Transparency?

Imagine you're an HR leader tasked with implementing pay transparency across a global enterprise. You must analyze complex compensation data, identify discrepancies, and communicate pay ranges to employees and candidates.

It's a daunting challenge, but Compport is here to help.

Compport is a powerful platform that enables companies to champion pay equity and transparency at scale.

Here’s a sneak peek into Compport’s pay equity platform’s dashboard:

With Compport, you can:

Analyze compensation data, particularly identifying gaps in pay equity, outliers and skewed data
Manage and understand current compensation structures in your organization
Get Assistance to understand differentiating compensation approaches
Address cultural differences around pay transparency, particularly in contexts where companies need to disclose compensation details, people don't openly discuss compensation, or there are varying organizational cultures around transparency

Want to see Compport in action?

Book a demo!

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