Germany has failed to meet the June 7 deadline to implement the EU Pay Transparency Directive into national law. The directive, designed to enforce equal pay for equal work, takes effect across the European Union this month, but the bloc's largest economy has not complied.

The directive aims to address the gender pay gap, which in Germany stood at 6% in 2025 according to official data. It introduces three key mechanisms: the right to request pay information, mandatory gender pay gap reporting for large companies, and joint pay assessments.

The German government approved a bill on May 6 to amend the General Equal Treatment Act, but critics say it falls short. Education Minister Karin Prien faced accusations of bowing to business lobbyists by warning against 'unnecessary burdens' on companies.

Legal experts warn that the European Commission may launch infringement proceedings. 'The Commission can send a letter of formal notice, followed by a reasoned opinion,' said Matthias Ruffert, a law professor at Berlin's Humboldt University. If unresolved, the case could reach the European Court of Justice.

Germany has previously faced fines for delayed implementation of EU directives, including a €34 million penalty for failing to transpose the whistleblower protection directive on time. The Commission typically seeks negotiation before litigation, but non-compliance risks substantial financial penalties.

Source: www.dw.com