What are the new rights for employees under the law?
Employees now possess the legal authority to request detailed information regarding their individual compensation levels in writing. This right is designed to dismantle the culture of 'salary taboos' that previously relied on confidentiality clauses and secret contracts to hide potential wage discrimination.
Beyond personal earnings, workers can request aggregated data concerning average compensation broken down by gender for individuals performing the same work or work of equal value. To ensure privacy, this information is provided as cumulative data, meaning specific salaries of individual colleagues remain protected. Employers are mandated to respond to these requests within a two-month window and must provide annual updates to staff regarding these transparency rights.
Protecting individual privacy
While the law empowers workers to seek clarity, it maintains a strict balance with data protection. The requirement to provide 'aggregated data' means that while a worker can see if there is a systemic gap between men and women in their department, they cannot pinpoint the exact bank balance of the person sitting in the next cubicle. This mechanism is intended to facilitate collective awareness without violating personal GDPR-related privacy standards.
How must employers report salary data?
Reporting obligations are strictly tiered based on the size of the workforce, requiring large companies to submit detailed financial and structural data to the Ombudsman, the Labor Inspectorate, and employee representatives.
The frequency and deadlines for these submissions vary significantly depending on the scale of the organization:
- Companies with over 250 employees: Must submit their first report by June 7, 2027, and continue to do so on an annual basis.
- Companies with 150 to 249 employees: Must complete their first submission by June 7, 2027, with subsequent reports required every three years.
- Companies with 100 to 149 employees: The first deadline is set for June 7, 2031, followed by reporting every three years.
These reports must include comprehensive details such as basic salaries, bonuses, and established salary scales to ensure a complete overview of the compensation structure.
What happens if wage disparities are discovered?
The law introduces immediate corrective measures if audits or reports reveal an unjustified pay gap of at least 5% between men and women within the same professional category.
Once a discrepancy is identified, the employer is granted a six-month window to rectify the imbalance. Failure to implement these corrections triggers a mandatory "joint evaluation" process involving employee representatives. Following this evaluation, the company is legally obligated to execute the necessary corrective measures within one year. This shift moves the burden of proof from the employee to the employer; in legal disputes, the employer must demonstrate that no discrimination occurred, rather than the worker having to prove that it did.
How does this align with European Union standards?
The Greek legislation is part of a broader movement driven by the European Parliament, which mandates that all EU member states adopt similar transparency measures to harmonize the single market.
The EU directive establishes several core pillars that influence national laws:
- Pre-employment transparency: Employers across Europe must list salary ranges in job advertisements or disclose them before the first interview. Furthermore, it is prohibited to ask candidates about their previous salary history.
- Unified reporting timelines: The schedule seen in Greece—where larger firms report starting in 2027 and smaller ones in 2031—reflects a standardized European approach to implementation.
- Enhanced legal recourse: EU rules strengthen the ability of workers to claim compensation for wage discrimination by simplifying the judicial process.
While some nations have already integrated these rules, others are still in the consultation phase, such as the United Kingdom, highlighting the ongoing transition toward a transparent European labor market.
Why is transparency necessary to close the gender pay gap?
The gender pay gap remains a persistent issue in the EU, with women earning an average of 11.1% less per hour than their male counterparts, a figure largely attributed to institutional secrecy.
Without transparency, wage discrimination remains invisible, preventing employees from recognizing when they are being underpaid. This inequality compounds over a lifetime; because women earn less during their active working years, the gap widens significantly by retirement. In the EU, the gender pension gap has reached 25%, placing older women at a much higher risk of poverty.
The impact of caregiving and sector segregation
Structural barriers further exacerbate these disparities. Women constitute 66% of all part-time workers in the EU and account for 91% of career breaks related to childcare. Opaque salary structures allow companies to silently delay wage progression for mothers returning to the workforce. Additionally, in female-dominated sectors like education and care—where women hold 76% of positions—wages are systematically undervalued. Because compensation structures in these fields are often hidden, there is a lack of data to prove whether "work of equal value" is being compensated fairly compared to male-dominated industries.
Frequently asked questions
Can my employer refuse to show me the average salary for my role?
No, under the new law, employers are legally required to provide aggregated data regarding average compensation by gender for roles of equal value if requested in writing. They must respond to your request within two months, though they will not disclose specific individual salaries of your colleagues.
What is the penalty for a 5% pay gap between genders?
If a gap of at least 5% is found, the employer has six months to fix it. If they fail to do so, they must undergo a joint evaluation with employee representatives and implement mandatory corrective actions within one year to ensure legal compliance.
Are companies allowed to ask for my previous salary during interviews?
No, the new transparency standards prohibit employers from asking candidates about their previous salary history. Additionally, employers are increasingly required to provide a salary range in job postings to ensure fairness from the very beginning of the recruitment process.
How does this law affect large versus small companies?
Large companies (250+ employees) face the strictest requirements, needing to report annually starting in 2027. Smaller companies have more breathing room, with those having 100-149 employees not required to submit their first report until 2031, with subsequent filings every three years.
Does this law apply to the private sector?
Yes, the law specifically targets the private sector, where Eurostat has noted that wage secrecy is most common. By removing confidentiality clauses, the law aims to bring transparency to private companies that have historically used them to hide pay disparities.
Key takeaways
- Law 5316/2026 eliminates salary secrecy, allowing employees to legally request compensation data.
- Employers must correct any gender-based pay discrepancies of 5% or more within six months.
- Large companies with over 250 staff must begin annual reporting in June 2027.
- EU rules prohibit asking candidates about their previous salary during the hiring process.
- Women in the EU earn 11.1% less per hour, contributing to a 25% pension gap.
The shift toward wage equality
The transition from confidential contracts to transparent pay structures represents a fundamental shift in the power dynamics of the workplace. By moving the burden of proof onto the employer, the law provides a practical mechanism to combat the systemic invisibility of the gender pay gap. While the implementation schedule is staggered, the ultimate goal is to create a standardized European labor market where compensation is determined by the value of work rather than secrecy or negotiation advantages. This legislative evolution is a critical step toward ensuring long-term financial security and equality for all workers.
