ELA EU Pay Directive
AUSTRIA
Legislation Addressing the EU Pay Directive
Succinct summary of the legislation:
Despite the expiry of the transposition deadline, no implementing legislation has yet been adopted in Austria, and no official draft has been published to date.
According to press reports, on 06.06.2026 – i.e. one day before the transposition deadline expired – the Federal Minister of Labour (SPÖ) circulated a draft among among the other political parties for coordination purposes. Although this draft is not publicly available, it is understood to reflect the outcome of the discussions and negotiations conducted so far. Overall, the transposition process has progressed rather slowly, primarily because the Austrian social partners have reportedly been unable to reach agreement on several key implementation issues. In particular, discussions have focused on the future role and significance of existing job classifications and pay groups under the various Austrian collective bargaining agreements.
At this stage, it is difficult to predict when a formal draft will be published. Given the parliamentary summer recess, no material legislative developments are expected before September 2026.
Draft legislation implementation:
Historically, Austria has taken a rather conservative approach to the implementation of EU directives and has, in most cases, limited itself to the minimum requirements set out in the relevant directive rather than introducing additional or more stringent obligations.
While the draft currently under political coordination has been circulated to a limited number of advisers, including our firm, it remains unclear whether its provisions will ultimately be reflected in the final legislation or whether substantial amendments may still be made during the legislative process. However, the draft available to us appears to be broadly consistent with Austria’s traditional approach to the implementation of EU directives and does not indicate a significant degree of “gold plating”. In particular, the draft provides for administrative fines of up to EUR 60,000 for breaches of the pay transparency obligations; does not make use of the option under Art 6 para 2 of the Directive to exempt employers with fewer than 50 workers from the obligation related to the pay progression; and provides that contractual provisions restricting employees from disclosing information regarding their remuneration will be null and void.
Recruitment and job applicants
What information must an employer provide to job applicants in relation to pay (i.e. what does "initial pay range" include – basic pay, bonus, family leave payments, pension, stock options, etc)?
Under the current legal framework, Sec 9 para 2 of the Equal Treatment Act (Gleichbehandlungsgesetz – “GlBG”) requires employers to state in job advertisements at least the minimum remuneration applicable under the relevant collective bargaining agreement and to indicate any willingness to offer remuneration above this minimum. The remuneration stated in the job advertisement is intended to serve as the minimum basis for the subsequent salary negotiations. Further, job advertisements must be gender-neutral.
How and when must this information be provided?
The releveant information must be included in the (internal or external) job advertisement.
Does the salary history ban apply equally to internal candidates?
There is currently no such legal restriction under Austrian law. Accordingly, no specific restrictions apply to internal candidates.
Can employers' use salary history information already known to them when determining salaries for internal hires/ promotions?
Yes. Austrian law currently does not prohibit employers from taking existing salary information into account when determining remuneration for internal hires or promotions. However, remuneration decisions must comply with the principle of equal treatment and must not result in unlawful discrimination. Differences in pay must therefore be objectively justified.
Does local law require that the job vacancy notices and job titles are gender neutral?
Yes (see Sec 9 GlBG).
Transparency of pay and pay progression policy
What information must an employer make available to workers about workers’ pay, pay levels and pay progression under local law?
There are currently no specific rules under Austrian law requiring employers to provide employees with information regarding pay levels or pay progression. However, pursuant to Sec 2f para 1 of the Employment Contract Law Amendment Act (Arbeitsvertragsrechts-Anpassungsgesetz, “AVRAG”), employers must provide employees, upon payment of remuneration, with a written, clear, comprehensible and complete pay slip setting out the remuneration and any expense reimbursements. Further, in companies with a works council, the employer must inform the works council of each new hire, including information on the employee’s position, classification under the applicable collective bargaining agreement or internal salary scheme and remuneration (Sec 99 para 4 of the Labour Constitution Act, Arbeitsverfassungsgesetz, “ArbVG”).
How should this information be provided?
The pay slip must be provided in writing and may also be provided electronically.
Prohibitions on workers disclosing pay information
Contractual clauses that prevent employees from disclosing information about their pay are prohibited under the Directive.
Can employers impose any restrictions on workers to prevent them from disclosing their own pay, and/or average pay information obtained pursuant to an information request?
Under current Austrian law, contractual pay secrecy clauses are not expressly prohibited and are still commonly included in employment agreements. While there is no case law on the enforceability of such clauses, it is generally considered questionable whether employers can effectively sanction employees for disclosing their own remuneration. In practice, such clauses primarily serve an awareness-raising or deterrent function, and enforcement is uncommon. Whether any measures may be taken in response to a disclosure will ultimately depend on the specific circumstances of the individual case.
Gender pay gap reporting
Are the pay gap reporting deadlines the same as those set out in the Directive? If no, please answer (i) below. i. When must an employer first report the required pay gap information? And thereafter how often is an employer required to report and in respect of what period?
No. The current Austrian income reporting requirements differ significantly from the reporting obligations set out in the Directive.
i. The income report must be submitted during the first quarter of the calender year following the relevant rpeorting year.
Please confirm what gender pay gap information employers must provide under local law (and include detail on headcount thresholds).
Pursuant to Sec 11a GlBG, employers with more than 150 employees have to submit an income report (Einkommensbericht) every two years. The report contains anonymised remuneration information broken down by gender and must include:
- The number of women and men in the respective usage groups of a) the applicable collective bargaining agreement or b) an internal scheme (if any) as well as c) the amount of men and women in the various years of service within a specific usage group.
- The average or median gross pay of women and men in the respective usage groups of a) the applicable collective bargaining agreement or b) an internal scheme (if any) as well as c) in the various year of service within a specific usage group.
What pay information (if any) is an employer required to publish and where does it need to be published (i.e. on its website).
The income report does not have to be made public. It is an internal company document that must be submitted to the relevant employee representative body (e.g. the works council). If no such body exists, the report must be made accessible to all employees in a designated area of the workplace. The works council and the employees are subject to confidentiality obligations regarding the contents of the report.
Is an employer required to provide the information to an authority and if so when?
INSERT ANSWER
Is there any information as to how information held by authorities will be published (i.e. will individual employers be named in annual reports or will published gender pay gap information be sector specific and anonymise employers)?
No.
Does local law specify how employers should consider employees that choose not to identify with a particular gender?
No.
National Workforce Thresholds
Does national law apply different workforce thresholds than those set out in the Directive (100/150/250 employees) for any pay transparency or reporting obligations?
N/A (please see the current income report requirements outlined under previous question).
Dealing with Gaps & Joint Pay Assessments
Where gender pay differences are not justified on the basis of objective, gender-neutral criteria, in what timescale must an employer remedy the situation?
Under the current legal framework, no specific timeframe is stipulated within which an employer must remedy an unjustified gender pay difference. In practice, however, such issues are often addressed at an early out-of-court stage.
Does local law specify how an employer should remedy the situation?
The current legal framework does not prescribe a specific remediation process. Where an unjustified pay disparity is identified, employers will typically adjust the employee’s remuneration and make retroactive payments in order to avoid costly proceedings.
How must an employer work in close cooperation with workers’ representatives, the labour inspectorate and/or the equality body in remedying the situation?
There is no statutory obligation for employers to involve the works council or any other authority when an employee raises an allegation of pay discrimination.
In what circumstances does local law require an employer to conduct a joint pay assessment?
Current Austrian law does not require employers to carry out a joint pay assessment in cooperation with workers’ representatives.
Data Protection
Where the provision of information would lead to the disclosure of the pay of an identifiable worker, does local law limit access to the relevant information and if so, how?
The disclosure of data attributable to an employee constitutes the processing of personal data, which in Austria is governed, amongst other things, by the General Data Protection Regulation (GDPR) and the Data Protection Act (Datenschutzgesetz, “DSG”). The disclosure must therefore comply with the requirements of the GDPR. In particular, the data processing must be lawful. This includes, inter alia, ensuring that there is a legitimate basis for the data processing and that the principle of data minimisation is observed.
Breach of pay transparency and pay gap reporting requirements
What sanctions, penalties or other measures may be imposed on an employer in the event of breach of gender pay reporting or pay transparency requirements under local law?
As outlined under the gender pay gap reporting question, the income report pursuant to Sec 11a GlBG must be submitted every two years and prepared during the first quarter of the calendar year following the relevant reporting year. Following the expiry of this deadline, the preparation of the income report may be enforced through court proceedings by the works council or, in the absence of a works council, by any employee. The right to request the preparation of an income report is subject to a three-year limitation period.
Non-compliance with the requirements of Sec 9 GlBG regarding job advertisements may result in a warning for a first infringement and, in the case of repeated infringements, an administrative fine of up to EUR 360.
Rights to equal pay – rights of action
What rights of action under local law are available to a worker as a result of any alleged infringement of the right to equal pay?
Under the current legal framework in Austria, employees who allege gender-based pay discrimination may bring a claim before the competent court. The claim may be asserted in court within three years. In addition to or instead of the court proceedings, employees may bring the discrimination case before the Equal Treatment Commission. The commission examines discrimination cases and prepares expert opinions. The decisions are only recommendations and therefore not legally binding.
If pay discrimination is established, i.e. where an employee receives lower remuneration than other employees for the same work or work of equal value, the employee is entitled to the difference in remuneration as well as compensation for the personal impairment suffered. With regard to the exact amount of damages, Austrian law merely provides that the compensation must be calculated in a manner that actually and effectively compensates for the impairment suffered, is reasonable in light of the impairment and prevents any further discrimination. In determining the amount of compensation, the courts may, for example, take into account the period over which the discrimination occurred and the frequency of the discriminatory treatment.
Workers Representatives
How does local law define ‘workers’ representatives?
Austrian employee representation exists at two levels. At company level, employees may establish a works council. A works council may be elected in companies employing at least five employees, although its establishment is entirely at the discretion of the workforce. At supra-company level, employees are represented by labour unions (Gewerkschaften) and the Chamer of Labour (Arbeiterkammer). The labour unions are organised within the Austrian Trade Union Federation (ÖGB) and are, in particular, responsible for negotiating collective bargaining agreements. Membership in the Chamber of Labour is mandatory for employees, while membership in a labour union is voluntary and requires an application by the employee.
If the employer does not have any workers’ representatives, what are its obligations in relation to the provisions of the Directive referring to workers' representatives?
Although it remains unclear how the final transposing legislation will address this issue, we would expect it to contain provisions for both employers with and without a works council. This would be consistent with the existing income reporting regime, which provides separate rules for employers depending on whether a works council exists (please see question 7 on gender pay gap reporting).
What rights of action are available to a worker or workers’ representatives in event of breach of gender pay reporting or pay transparency requirements under local law?
Please refer to question 11 on Breach of pay transparency and pay gap reporting requirements.