Berlin’s Delay Triggers Direct EU Pay Enforcement: IT Sector Most at Risk from New Burden of Proof

German companies must now defend themselves against pay discrimination claims under direct EU law after the government failed to meet the implementation deadline. The EU Pay Transparency Directive (2023/970) applies as of 8 June 2026 without a national act, shifting the evidentiary burden squarely onto employers.

For the IT industry the impact is particularly severe. Individual salary negotiations, common in the sector, now face heightened scrutiny. A single comparison with a colleague’s wage is sufficient to establish a prima facie case of discrimination, according to a landmark ruling by the Federal Labour Court (BAG) in October 2025 (Case No. 8 AZR 300/24). Once an employee presents such evidence, the employer must prove the pay difference is justified. Contractual clauses that silence employees about their salaries are void. If discrimination is proven, back-pay can be demanded for up to three years.

Direct application and a patchwork of rulings

Because Berlin missed the transposition deadline – originally set for 7 June 2026 – German courts are now applying the directive’s provisions directly. This creates legal uncertainty: without a national law, further interpretation is left to labour judges, raising the risk of inconsistent rulings across different jurisdictions.

Companies with at least 200 employees must grant individual information requests on pay levels. For businesses with more than 500 staff, comprehensive reports are mandatory. A further BAG decision from February 2026 clarified that the right to information is company-specific, not cross-company.

Job advertisements must now include pay ranges. Asking candidates about their previous salary is prohibited.

Numbers underscore the problem

The unadjusted gender pay gap in Germany stands at 16 percent. The adjusted gap – which accounts for occupation, education, and work experience – has stagnated at 6 percent. Despite years of political debate, the disparity has barely narrowed.

A national implementation law is not expected before early 2027. The government reportedly plans to make specific reporting obligations mandatory only from June 2028. Trade associations such as the German Hotel and Restaurant Association (DEHOGA) welcome the delay, arguing it gives firms more time to adjust.

Critics warn that the prolonged vacuum heightens legal risks for all sides. Law firms and employer organisations are urging companies to audit their compensation structures now, rather than wait for formal legislation.

Beyond pay transparency: minimum wage and mini-jobs

Separate labour-law changes have also taken effect since January 2026. The statutory minimum wage now stands at €13.90 per hour, with an increase to €14.60 planned for early 2027.

Meanwhile, a pensions commission has proposed restricting so-called Minijobs (low-paid marginal employment) to school pupils only. All other mini-jobbers would be required to contribute to the statutory pension insurance scheme. The proposal has drawn sharp criticism from the hospitality sector, which employs roughly 1.1 million people in such arrangements. The industry warns it could face severe staffing shortages if the plan proceeds.

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