What Is a Valid Salary Range?

Article 5 Requires Objective Gender-Neutral Criteria

The legal starting point is Article 5 of Directive (EU) 2023/970. Applicants have the right to receive information about the initial pay or its range for the position, and that pay information must be based on objective and gender-neutral criteria. The Directive does not define a single approved salary-band formula. Instead, it requires employers to be able to connect the disclosed range to defensible criteria for the role. A range that is simply guessed by a recruiter or changed from candidate to candidate without a structured basis is difficult to reconcile with that requirement.

The Range Should Reflect the Position the Employer Is Actually Hiring For

A valid range should be tied to the role being advertised, not to a generic company-wide number that has little relationship to the vacancy. Employers should identify the level, responsibilities, required skills, location where relevant, collective-agreement rules where applicable and internal job architecture before setting the range. The lower and upper boundaries should represent realistic starting-pay outcomes for the position. If an employer would never genuinely hire at one end of the range, including that figure can reduce the usefulness of the disclosure and undermine applicant confidence.

Both Ends of the Range Need a Defensible Basis

The minimum should not simply be the lowest figure the employer hopes a candidate will accept, and the maximum should not be an aspirational number with no realistic connection to the role. Employers should be able to explain what distinguishes a candidate near the lower end from one who could legitimately be placed nearer the upper end. Relevant factors may include the depth of job-related experience, demonstrated skills, qualifications, responsibility level or other objective criteria. The important point is that the factors are relevant to the position and are applied without direct or indirect sex discrimination.

The Range Should Align With Internal Pay-Setting Criteria

Article 6 requires employers to make the criteria used to determine workers' pay, pay levels and pay progression easily accessible to workers, and those criteria must be objective and gender-neutral. Recruitment ranges should therefore not operate as a separate system that contradicts internal pay structures. If the organisation uses grades, bands or job-evaluation levels, the recruitment range should normally map to those structures. This helps the employer explain why an applicant was offered a particular starting amount and reduces the risk that recruitment decisions create unexplained pay differences after hiring.

A Collective Agreement Can Shape the Valid Range

Article 5 also requires applicants to receive relevant provisions of the collective agreement applied by the employer where those provisions are applicable to the position. In a collectively bargained environment, the lawful or practical starting-pay range may therefore be constrained by negotiated grades, steps, allowances or progression rules. Employers should not publish a range that conflicts with those rules. Recruitment, compensation and labour-relations teams should confirm the applicable agreement before the vacancy is released so that the disclosed range and the eventual offer are based on the same framework.

The Range Must Be Applied Consistently in Recruitment

A well-designed range can still create problems if recruiters use it inconsistently. Employers should define which objective factors allow movement within the range, who can approve exceptions and how decisions are recorded. Two applicants with similar job-related characteristics should not be placed at very different points for reasons that cannot be explained objectively. A structured offer process can include a short record of the criteria supporting the selected starting pay. This turns the range from a disclosure exercise into part of a defensible pay-setting system.

National Rules May Add More Specific Requirements

Directive (EU) 2023/970 sets the EU baseline, but Member States can implement more specific or more favourable rules. National law may influence how ranges are displayed, when they must be disclosed or what additional information is required. Employers operating across several countries should therefore avoid assuming that one salary-range format will satisfy every jurisdiction. A central policy can define the objective gender-neutral methodology, while local recruitment instructions add any country-specific rules on format, timing or documentation.

Frequently Asked Questions

Related Guides

• salary transparency in recruitment under EU pay transparency rules
• how wide a salary range can be

Official Sources

• Directive (EU) 2023/970 - Articles 5 and 6
• European Commission - New EU rules on pay transparency explained