Pay transparency law 2026: what changes for you

The pay transparency law changes one simple but important thing: you no longer have to guess what your work is worth. The company now has to show the salary in the ad, cannot ask what you earned before, and you get the right to know whether there are pay gaps by sex.

All of this comes from the EU directive 2023/970. Portugal had to transpose it into national law by 7 June 2026.

The salary has to be in the job ad

Today, most ads say "salary to be agreed" or "competitive salary". That ends.

The directive requires the company to give you that information in the ad or, at the latest, before the interview. The point is that you enter the conversation knowing how much is on the table.

The company cannot ask what you earned before

This is one of the most practical changes. During recruitment, the company is banned from asking about your pay history.

Why? Because when the offer is based on what you earned before, people who were already underpaid stay underpaid. The role is now worth a fixed number, the same for everyone, rather than whatever each person accepted in the past.

[Common interpretation:] if an interviewer asks "how much do you earn now?", that question is no longer allowed once the rule is in force. You can decline to answer and state the expectation you have for the role.

You have the right to know if there are gaps by sex

Once you are in the company, you gain a new right: to ask for pay information.

You will not learn exactly how much the colleague next to you earns. But you do have the right to ask for:

• The average pay levels, broken down by sex, for people doing the same work or work of equal value.
• The criteria used to set pay and career progression. Those criteria must be objective and the same for women and men.

The 5% rule: what the company has to do

The directive forces companies to measure and report the pay gap between women and men:

• Companies with more than 250 employees report every year.
• Companies between 100 and 249 employees report every 3 years.
• Companies with fewer than 100 employees do not have this reporting obligation.

If the report shows a gap above 5% that is not justified by objective criteria, the company must carry out a joint pay assessment with workers' representatives and correct the gap.

If there is discrimination, the company proves it

This is the part that shifts the game in your favour. Until now, it was the worker who had to prove they were discriminated against, which is very hard without access to the data.

With the directive, the burden of proof shifts to the company. In court, it is the company that must prove it did not break the equal pay rules.

If discrimination is found, you are entitled to compensation. That includes recovering back pay and the bonuses or benefits you missed out on. Fines for companies that fail to comply must be dissuasive.

What Portugal already has

Portugal is not starting from scratch. Law 60/2018 of 21 August already requires companies to measure and correct pay gaps between women and men. It created the sector pay gap barometer and the company level balance sheet, and CITE awards a pay equality seal to companies that comply.

The 2026 EU directive strengthens and broadens these rules. The strongest changes for you are the salary in ads, the ban on asking your previous salary, and the right to ask for average pay information.

[Depends on the case:] the exact status of transposition into Portuguese law should be confirmed in the official gazette. At the date of this guide, Law 60/2018 is in force and the EU directive sets the deadline of 7 June 2026. Always check the most recent version of national law before acting.

What you should do now

• When applying, check whether the ad states the salary. If it does not, you can ask for that information before the interview.
• In an interview, if they ask how much you earn today, know that this question is no longer allowed. Focus on your expectation for the role.
• Once in the company, if you suspect a gap, ask in writing for the average pay levels by sex and the pay criteria.
• If there is discrimination, keep everything you have and file a complaint. First, get to know your 10 basic rights as a worker.

To understand your net salary and the parts of your pay, see also the guide to the 2026 minimum wage.

This guide is for information only and does not replace individual legal advice.