Pay Transparency Act: Better awareness, more clarity and greater binding force are urgently needed.

The Pay Transparency Act (EntgTranspG) is intended to contribute to closing the pay gap between women and men that still exists in Germany. IAW conducted the second evaluation of the law on behalf of the Federal Ministry for Family Affairs, Senior Citizens, Women and Youth (BMFSFJ). On 24 August 2023, the evaluation study was on the agenda of the Federal Cabinet meeting.

Three main recommendations can be derived from the results of the evaluation that can contribute to a better effectiveness of the Act: Firstly, the underlying regulations should become even better known, especially among employees; secondly, more clarity and uniformity should be sought in the wording of the law; and thirdly, the binding nature of the law's instruments should be increased.

Contact at the IAW: Dr. Andreas Koch