Salary-history questions are restricted because EU pay transparency rules are designed to base recruitment pay on the new role rather than on what an applicant happened to earn before. Article 5(2) therefore prohibits employers from asking about pay history, while Article 5(1) requires the prospective employer to provide the initial pay or range based on objective, gender-neutral criteria. This structure reduces the risk that existing pay differences are simply carried forward into a new employment relationship. Employers should set and disclose the role's pay framework first, then place applicants within it using relevant objective criteria such as skills, experience and responsibility.
Jurisdiction: European Union
The Restriction Sits Inside the Directive's Equal-Pay Framework
Directive (EU) 2023/970 is designed to strengthen the application of equal pay for women and men for equal work or work of equal value. Article 5 places recruitment inside that framework. It requires employers to provide applicants with initial pay or range information based on objective gender-neutral criteria and separately prohibits questions about pay history. The two rules work together: the prospective employer should explain the pay framework for the new position instead of requiring the applicant to reveal the compensation attached to a previous employment relationship.
Previous Salary Can Anchor a New Offer to an Old Outcome
When prior salary becomes the starting point for negotiation, the new offer may be expressed as an increase on a figure that was set by another employer under different conditions. If that historic figure reflected an unexplained or discriminatory pay difference, using it again can carry the effect forward. The Directive avoids making historical pay part of the employer's questioning and instead directs attention to the objective criteria of the new role. This does not guarantee identical offers, but it changes the basis on which differences should be explained.
The Employer Must Bring Its Own Pay Framework to the Recruitment Process
Article 5(1) places the transparency obligation on the prospective employer. The employer should already know the initial pay or range for the position and the objective gender-neutral criteria supporting it. That structure is important because it prevents the employer from waiting to see the applicant's previous salary before deciding what the role is worth. Compensation and HR teams should establish the range before recruitment and give recruiters clear placement criteria. The applicant's former pay should not be needed to determine the approved framework for the vacancy.
Relevant Experience Still Matters Without Previous Salary
Removing pay-history questions does not mean employers must ignore differences between applicants. Relevant experience, skills, qualifications, responsibility and other objective factors can still affect starting pay where they are genuinely connected to the role and applied in a gender-neutral manner. The difference is evidential. The employer should be able to say that a candidate was placed higher in the range because of a defined job-related factor, not because the person's former employer paid more. That produces a clearer record for later equal-pay analysis.
The Restriction Also Changes Negotiation Culture
Traditional recruitment sometimes treats previous salary as a shortcut for deciding what a candidate is likely to accept. The Directive pushes employers toward a different model. The organisation discloses the role's starting-pay framework, and negotiation takes place within that transparent structure. Candidates can discuss the value they bring to the role without first disclosing historical compensation. Employers can still differentiate offers where objective criteria justify the difference, but the negotiation begins with the new position rather than with an individual's pay history.
Recruitment Systems Should Be Rebuilt Around the New Logic
Removing one interview question is not enough if other parts of the process still depend on prior salary. Employers should review application forms, applicant-tracking systems, recruiter incentives, offer calculators and approval templates. A tool that automatically recommends an offer by applying a percentage increase to previous pay would conflict with the intended direction of the new framework if obtaining that history requires a prohibited question. A better model starts with the role's approved range and applies documented job-related placement criteria.
National Implementation Determines Enforcement Details
The EU Directive provides the core rule, but Member States determine the national implementing legislation, enforcement procedures and penalties. Employers should therefore monitor local rules and update recruitment processes country by country. The policy rationale remains useful even where national wording differs: previous salary should not be the employer's information source for setting the new role's pay. A documented process based on the vacancy's objective criteria is easier to apply consistently across jurisdictions.
Frequently Asked Questions
Why does the Directive prohibit salary-history questions?
The recruitment framework is designed to base starting pay on objective gender-neutral criteria for the new position rather than on an applicant's previous compensation.
Does the restriction mean every applicant must receive the same offer?
No. Objective job-related factors can still justify different starting pay within the employer's disclosed framework.
Can employers use relevant experience after salary history is removed?
Yes. Relevant experience can be assessed independently from previous salary and can influence pay where it is an objective gender-neutral criterion.
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Official Sources
Requirements and practices differ by jurisdiction and organisation. Check current local law, official guidance and professional advice for a specific situation.