What businesses need to prepare for from 1 November 2026

How is the salary for a particular position determined? What criteria justify a pay increase? Can an employer explain why employees performing comparable work receive different levels of remuneration? These everyday questions take on particular significance under Law 5316/2026 on pay transparency.

The new legislation transposes Directive (EU) 2023/970 into Greek law and strengthens the principle of equal pay for women and men performing the same work or work of equal value. From 1 November 2026, new obligations come into effect concerning pay structures, recruitment procedures and employee access to information. For employers, the central requirement is to establish clear remuneration policies and maintain records demonstrating how they are applied in practice.

Which businesses are affected?

The new pay transparency framework applies to all employers in the private and public sectors, regardless of their size or number of employees, subject to the specific scope of application of individual provisions. Its protections extend to employees in both sectors, as well as job applicants, since certain information and transparency obligations arise even before an employment relationship begins (Articles 4 and 9 of Law 5316/2026 and Articles 2 and 5 of Directive (EU) 2023/970).

Smaller businesses are not generally exempt from the fundamental pay transparency requirements. Even employers with a limited workforce must ensure equal pay for women and men performing the same work or work of equal value, apply objective and gender-neutral criteria when determining remuneration, provide the required information to job applicants and respond to employees' lawful requests for pay information (Articles 8–10 of Law 5316/2026 and Articles 4–7 of Directive (EU) 2023/970).

Workforce size primarily determines whether an employer is required to report gender pay gap data periodically, together with the applicable reporting deadlines and frequency. A specific exemption is available to employers with fewer than 50 employees, who may be exempt from providing information on the criteria governing pay progression. This exemption does not affect their remaining transparency obligations (Articles 8 and 11 of Law 5316/2026 and Articles 6(2) and 9 of Directive (EU) 2023/970).

When assessing compliance with the principle of equal pay, all remuneration and benefits arising from the employment relationship must be taken into account. In addition to basic salary, this includes allowances, commissions, bonuses, other variable remuneration and benefits in kind, as well as employer contributions to occupational pension schemes where these form part of the remuneration package (Article 5 of Law 5316/2026 and Article 3 of Directive (EU) 2023/970).

Consequently, two employees receiving the same basic salary may nevertheless receive different overall remuneration. Assessing equal pay therefore requires consideration of the entire remuneration package, together with any objective criteria that may justify differences in pay.

Establishing and documenting pay structures

Every employer must establish a documented pay structure, setting out job categories, remuneration components and the criteria used to assess the work performed. The system must allow meaningful comparisons and provide for periodic review. The criteria used to determine remuneration must also be readily accessible to employees.

Job evaluation must take into account skills, effort, responsibility and working conditions. Where employee representatives are in place, the statutory requirements concerning agreement on the relevant criteria must be observed. Where a collective bargaining agreement applies, its job classifications and pay scales may be used, provided they meet the applicable legal requirements.

Differences in remuneration may be justified by objective, gender-neutral factors. For example, greater relevant experience or additional responsibilities may warrant higher pay, provided the distinction genuinely reflects the duties performed and is properly documented. Additional responsibilities should be reflected in the employee's job description, while performance-related remuneration should be supported by a recorded performance assessment (Article 8 of Law 5316/2026 and Article 4 of Directive (EU) 2023/970).

Pay transparency during recruitment

Job applicants must be informed of the initial pay or pay range for a position before the interview, together with the relevant provisions of any applicable collective bargaining agreement. Where no interview takes place, this information must be provided before the employment contract is concluded.

The information may be communicated through the job advertisement or by other appropriate means before the interview, either in writing or orally. Written communication, such as an email, can help employers demonstrate compliance.

Employers are also prohibited from asking applicants about their current or previous remuneration. Job advertisements and recruitment procedures must remain gender-neutral (Article 9 of Law 5316/2026 and Article 5 of Directive (EU) 2023/970). Employers should therefore ensure that both internal recruitment personnel and external recruitment partners are informed of these requirements.

Employees' right to pay information

Employees have the right to request, in writing, information about their individual pay and the average pay levels, broken down by gender, for categories of employees performing the same work or work of equal value.

Employers must respond in writing within a reasonable period and, in any event, within two months. Where the information provided is inaccurate or incomplete, employees may request additional reasonable clarification. Employers must also inform their workforce annually of this right and explain how it may be exercised.

In practical terms, employers should designate a person or department responsible for receiving such requests, record the date of receipt and monitor the applicable response deadline.

Information must be provided in compliance with data protection requirements. Where disclosure of average pay levels could reveal the remuneration of an identifiable individual, specific access restrictions apply, with information being made available through employee representatives or the competent authorities.

Employment contracts and internal policies should also be reviewed. Confidentiality clauses cannot prevent employees from disclosing their own remuneration for the purpose of enforcing their right to equal pay. Although the confidentiality of third-party pay information remains protected, it cannot be used to conceal potential pay discrimination (Article 10 of Law 5316/2026 and Articles 6–7 of Directive (EU) 2023/970).

Gender pay gap reporting and deadlines

Employers with 100 or more employees are subject to additional obligations requiring periodic reporting of specified remuneration data to the Greek Ombudsman (Synigoros tou Politi).

Employers must also provide employees and their representatives with relevant information concerning the gender pay gap across employee categories. These requirements are intended to provide a clearer picture of pay differences between women and men and how remuneration is distributed across different pay levels.

The following reporting deadlines apply to employers falling within the relevant workforce thresholds. The average number of employees during the preceding calendar year determines the applicable category.

According to Ministry of Labour Circular 26923/7.10.2026, the first report due in 2027 covers the period 1 November 2026 to 31 December 2026. Employers should therefore begin organising the relevant data in advance.

Employers with fewer than 100 employees may submit the same information voluntarily every three years, covering the preceding calendar year and following the deadline applicable to employers with 100–149 employees (Article 11 of Law 5316/2026 and Article 9 of Directive (EU) 2023/970).

For employers subject to mandatory reporting, a gender pay gap of at least 5% within any category of employees triggers a joint pay assessment with employee representatives where the difference cannot be objectively justified and has not been remedied within six months of submission of the relevant data.

Any unjustified differences identified must be addressed within one year of the joint pay assessment being communicated. The 5% threshold applies specifically to the joint assessment procedure; unlawful pay discrimination may exist even where the difference is smaller (Article 12 of Law 5316/2026 and Article 10 of Directive (EU) 2023/970).

Consequences of non-compliance

An employer's ability to substantiate its remuneration decisions becomes particularly important when pay practices are challenged.

Where pay discrimination is alleged and the employer has failed to comply with its transparency obligations, the burden of proving that no direct or indirect discrimination occurred shifts to the employer. An exception applies where the employer demonstrates that the breach was manifestly unintentional and minor in nature. These rules on the burden of proof do not apply to criminal proceedings (Article 18 of Law 5316/2026 and Article 18 of Directive (EU) 2023/970).

The financial consequences of non-compliance may considerably exceed the amount of an administrative fine. An employee who has suffered harm is entitled to full compensation, without a predetermined statutory cap.

Depending on the circumstances, compensation may include historical pay differences, unpaid bonuses and benefits, default interest, loss of income or professional opportunities, and compensation for non-material damage. Both actual loss and loss of anticipated financial benefits arising from the infringement may therefore be recoverable (Article 16 of Law 5316/2026 and Article 16 of Directive (EU) 2023/970).

In proceedings before the Labour Inspectorate, an employer may be required to produce information concerning remuneration and the criteria used to determine it. Failure to provide the requested information may be treated as an inability to justify pay differences and may give rise to adverse evidential presumptions.

Where a Labour Inspector establishes discrimination, the employer is required to present corrective measures, which must be implemented within a reasonable period and, in any event, within six months (Article 27 of Law 5316/2026).

The Labour Inspectorate may also, subject to the statutory requirements, order the cessation of an infringement and require specific compliance measures. Failure to comply with such an order may result in recurring fines for each three-month period of continued non-compliance, calculated from the implementation deadline specified in the order (Article 17 of Law 5316/2026 and Article 17 of Directive (EU) 2023/970).

Finally, employees are protected against retaliation when exercising their right to equal pay. Requests for information, complaints and proceedings before competent authorities cannot lawfully serve as grounds for dismissal or other adverse treatment of employees or their representatives (Article 20 of Law 5316/2026 and Article 25 of Directive (EU) 2023/970).

Practical steps for employers

Employers can begin preparing for compliance by taking the following steps:

• Recording job positions, actual responsibilities and all components of remuneration.
• Establishing documented pay and job evaluation criteria, with the involvement of employee representatives where required by law.
• Reviewing pay differences and correcting those that cannot be objectively justified.
• Updating job advertisements and recruitment procedures, and informing those responsible for hiring.
• Establishing procedures for handling employee information requests, annual notifications and, where applicable, mandatory reporting.
• Reviewing employment contracts, internal regulations and bonus or salary progression policies with legal advisers.

The necessary measures should be tailored to each organisation's structure and operational requirements. Management, human resources, payroll teams and legal advisers should coordinate their responsibilities to ensure effective implementation.

By establishing transparent, consistent and properly documented remuneration practices, employers can integrate the new requirements into their day-to-day operations while enabling employees to better understand how their pay is determined.