A new European Union directive on pay transparency means that companies in Spain must provide more information on salaries in the job advert itself and before the application and interview process.
Companies in Spain tend to keep salaries under wraps during the initial recruitment process due to cultural custom and to maintain a stronger negotiating position.
This proves to be particularly frustrating for jobseekers in a country notorious for its low wages and job instability.
However, this practice is now set to change drastically as on June 7th the EU will adopt new rules requiring Member States to improve transparency regarding pay.
The aim of the EU Pay Transparency Directive is to enable workers to understand how pay is determined and to identify any unjustified differences in pay for jobs of equal value.
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One of the most noticeable changes will affect job advertisements and applications in Spain.
Companies must now share the starting salary or the pay range before the first interview. Ambiguous phrases such as “dependent on experience” without specific figures will no longer be acceptable.
In that vein, the new rules also mean that employers can no longer ask candidates how much they earned in previous jobs in order to prevent previous salaries from influencing future pay negotiations.
The directive also gives workers the right to request information on average salary levels for their sector broken down by gender, as well as the ending of confidentiality clauses that prevent employees from sharing their own salary with colleagues.
Furthermore, the new legislation creates a clear threshold for gender pay disparity. If a pay gap of more than 5 percent between men and women is detected within the same company and there is no justification, the company must take steps to rectify it.
In the event of non-compliance, firms could face substantial fines, which may reach high levels in the most serious cases, in addition to the payment of back pay to those affected.
The new transparency rules must be incorporated into Member States’ national laws before June 7th 2026.
While the law takes effect for initial transparency measures (like sharing salary ranges) for all employers, the deadline for companies to report and publish gender pay gap data varies by company size.
Companies with more than 250 employees and those with between 150 and 249 employees have to share this information from June 7th 2027, whereas companies with between 100 and 149 employees have until June 7th 2031. Companies with fewer than 100 employees are not required to report.
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All these changes are likely to have a considerable impact on job-hunting in Spain, where discussing salaries is not common. In fact, it’s almost taboo as many job postings don’t include a salary range, colleagues don’t discuss their earnings, and the topic is shrouded in secrecy.
Spain’s Women’s Institute reports that women earn €4,781.18 less per year, representing a gender pay gap of 15.74 percent.
According to data from the country’s National Statistics Institute, the average annual earnings for men are €30,372.49 and for women €25,591.31.
