Pay Transparency in Hiring 2026 — New Rules for Job Ads, Salaries and Recruitment

What Changed in the Hiring Process from 2026

Directive (EU) 2023/970 on strengthening the application of the principle of equal pay for men and women for equal work or work of equal value through pay transparency was adopted on 10 May 2023. The transposition deadline for all EU Member States is 7 June 2026.

Article 5 of the Directive is dedicated entirely to transparency before employment. It applies to every employer — regardless of company size — and covers four specific obligations:

1. Mandatory salary range in the job advertisement
2. Prohibition on asking candidates about current or previous pay
3. Gender-neutral job titles
4. Non-discriminatory recruitment at every stage of the process

In Bulgaria, these requirements will be transposed through the Draft Amendment to the Anti-Discrimination Act, which as of April 2026 is in the process of adoption.

Mandatory Salary Range in Job Advertisements

Article 5(1)(a) of the Directive requires the employer to indicate the initial level of pay or a pay range in the job advertisement. The information must be based on objective, gender-neutral criteria.

The Directive allows flexibility: the range can be stated directly in the ad or communicated to the candidate before the job interview. The key point: the candidate must know the pay framework before entering the interview.

What this means in practice

• “Competitive salary” — is no longer sufficient. This wording violates Art. 5(1)(a).
• “Salary to be determined after interview” — also non-compliant. The range must be known BEFORE the interview.
• Acceptable format: “Salary: EUR 1,800 – 2,400 gross” or “Starting level: BGN 3,500 gross”

In the Bulgarian draft amendment, this obligation is set out in Art. 12(3)(1).

How to determine the range

Determining the right salary range requires a structured approach:

1. Job grading — classify the position within a job evaluation system. More on methodology — in our article on job grading and classification.
2. Market benchmarking — position relative to market data for analogous roles
3. Internal equity — check against the pay of existing employees in similar positions

Ban on Asking About Previous Pay

Article 5(2) of the Directive introduces one of the most significant changes in hiring practice: the employer CANNOT request information from the candidate about their current or previous pay.

The prohibition is absolute and covers:

• Direct questioning — at interview, in a questionnaire, in an application form
• Through intermediaries — recruitment agencies, headhunters or recruiters acting on behalf of the employer
• Background checks — verifying salary with a previous employer, even with the candidate’s consent

In the Bulgarian draft amendment, the prohibition is set out in Art. 12(4).

What to ask INSTEAD

HR interviews must be restructured. The question “How much were you earning?” is PROHIBITED. Alternatives:

• “What are your salary expectations?” — permissible, because it asks about the future, not the past
• “What is important to you in a compensation package?” — focuses on motivation
• “Our range for this position is X–Y. Does that align with your expectations?” — legitimate, because the initiative comes from the employer

Practical implication: HR departments must review all standard questionnaires, interview scripts, and application forms. If they contain a field for “current salary” — it must be removed.

Gender-Neutral Job Titles

Article 5(3) of the Directive requires that job advertisements and job titles are gender-neutral. In the Bulgarian draft amendment, this is set out in Art. 12(2).

In Bulgarian, this is particularly relevant due to grammatical gender. Here are specific examples of violations and alternatives:

Practical steps

• Review the entire staffing schedule and check all job titles for gender neutrality
• Align with the National Classification of Occupations and Positions (NKPD) — many codes already use neutral titles
• Update employment contracts and internal documents if current titles use gendered forms

Related: see also our article on the Equal Pay Directive, which covers the broader context of gender equality in employment.

Non-Discriminatory Recruitment from A to Z

Article 5(3) of the Directive does not stop at individual steps — it requires the entire recruitment process to be conducted in a non-discriminatory manner. In the Bulgarian draft — Art. 12(7). This covers:

1. The advertisement — neutral language, salary range, no discriminatory requirements
2. CV screening — selection criteria must be objective and documented
3. The interview — standardised questions, no prohibited topics (pay history, marital status, plans for children)
4. Assessment — scoring system based on competencies, not subjective impressions
5. The offer — salary must be within the advertised range, without a gender-based negotiation gap

AI in recruitment

More and more companies use AI tools for candidate screening. The Directive reinforces the requirement for non-discrimination in algorithmic decisions. If you use AI in recruitment — see the legal risks of AI recruitment.

GDPR and CV storage

The recruitment process involves the processing of personal data — from CVs to interview results. Candidate data storage must comply with GDPR requirements. For more — see our GDPR handbook for business.

Before and After — Practical Examples

What the changes look like in real life:

Article 5(1)(b) also adds an obligation to provide information about the applicable provisions of a collective bargaining agreement (CBA), if applicable. In the Bulgarian draft — Art. 12(3)(2).

Impact on HR Agencies and Platforms

The obligations under Art. 5 are not limited to direct employers. They affect the entire hiring ecosystem:

Job advertisement platforms

• Jobs.bg, Zaplata.bg, LinkedIn — will need to adapt their ad submission forms so that the salary range field becomes mandatory
• Ads without a salary range will be non-compliant — platforms have an interest in introducing mandatory fields

HR agencies and headhunters

• Agencies CANNOT ask candidates about current salary on behalf of a client — the prohibition covers intermediaries too
• Headhunters must provide the client’s range BEFORE first contact with a candidate
• Contracts between employers and agencies must be revised to include a clause on compliance with Art. 5

In practice: if an agency asks a candidate “how much do you earn?” on your behalf — the violation belongs to both the agency and you.

How to Determine the Right Salary Range

Determining a salary range is not arbitrary — it must be based on objective, gender-neutral criteria. A four-step process:

1. Job grading — evaluate the position against objective criteria (responsibility, complexity, required experience, qualifications). Determine which salary band it falls into. More on methodology — job grading and classification.
2. Market data (benchmarking) — use salary survey data, compensation platforms, and sector analyses to position the range relative to the market
3. Internal equity — check how the range compares to the salaries of current employees in analogous roles. If a new hire will earn more than an existing employee — you have a risk of a claim under Art. 4
4. Finalisation and documentation — document the rationale so you can justify it in the event of an audit or court dispute

Sanctions for Non-Compliance

Violating the obligations under Art. 5 of the Directive leads to serious legal consequences:

Reversal of the burden of proof (Art. 18)

If the employer has not complied with the transparency obligations in hiring — in the event of court proceedings, the burden of proof is reversed. The candidate does not prove discrimination — the employer proves there was none. This is a fundamental shift in procedural position.

Fines under the Anti-Discrimination Act

• For natural persons: EUR 128–1,278 (BGN 250–2,500)
• For legal entities: EUR 128–2,556 (BGN 250–5,000)

Compensation for rejected candidates

If a candidate proves they were not hired due to discriminatory recruitment practices, they are entitled to full compensation without a cap — including lost benefits, non-material damages, and interest.

Whistleblower protection

Reports of pay transparency violations in hiring can also be submitted through internal whistleblowing channels. For more — see our article on whistleblowing and internal reporting channels.

Checklist for HR Departments

Eight steps to bring the hiring process into compliance with Directive 2023/970:

1. Review all active job advertisements — add a salary range or starting pay level to every ad
2. Remove the previous salary question — from forms, interview scripts, questionnaires, and all documents in the recruitment process
3. Train the HR team — interviewers must know that asking about previous pay is prohibited and must be familiar with the permissible alternatives
4. Check job titles — replace gender-specific titles with neutral ones. Align with the NKPD.
5. Implement a grading system — classify all positions so that salary bands can be determined objectively
6. Notify HR agencies — include a contractual clause that the agency cannot ask candidates about salary on your behalf
7. Document the recruitment process — evaluation criteria, scoring, rationale for selection — so you can prove non-discrimination in a dispute
8. Check internal equity — compare ranges for new positions with the salaries of existing employees in analogous roles

For comprehensive employment law compliance with the Directive — consult an expert.

Frequently Asked Questions