This draft introduces stricter requirements than the EU Pay Transparency Directive. Sent to social partners on 6 March 2026, the French draft treats the Pay Transparency Directive as a “floor, not a ceiling” introducing lower thresholds, expanded worker representative involvement, and robust sanctions.

We explain what this means for employers operating in France and the steps they should take now to prepare for the Pay Transparency Directive.

What are the key takeaways for employers under France’s pay transparency law?

Here are the key differences between the French draft law and the EU Pay Transparency Directive:

• The reporting threshold drops to 50 employees - half the Pay Transparency Directive's 100-employee standard - bringing significantly more companies into scope.
• Job advertisements must include pay ranges - non-compliance attracts penalties of €450 per breach.
• A multi-stage remediation process replaces the Pay Transparency Directive's single joint pay assessment, requiring mandatory consultation with the Social and Economic Committee (CSE) at multiple points.
• Employers may face penalties of up to 1% of total payroll for non-compliance with core obligations, rising to 2% for repeat offenders.
• The pay gap threshold triggering corrective action may be set below 5% - the exact figure will be confirmed by decree.
• Certain provisions will take effect immediately once the law is enacted, including the ban on pay secrecy clauses and the requirement to include pay ranges in job advertisements.

What does the French pay transparency draft law include?

What are the reporting obligations under the French pay transparency law?

The most significant departure from the Pay Transparency Directive is France’s decision to lower the mandatory reporting threshold from 100 employees to 50 employees. France took this approach because its domestic law already imposes reporting obligations at this level, and it did not wish to reduce the existing requirements applicable to companies.

This dramatically expands the number of companies caught by pay transparency requirements - particularly affecting SMEs with 50–99 employees who would otherwise be exempt under the EU framework.

France also requires seven indicators to be reported (to be specified by decree), including an indicator on pay gap by category of employees performing equal work or work of equal value. Companies with between 50 and 249 employees will only be required to report this indicator every three years.

France also introduces distinct obligation tiers based on company size:

• 50-99 employees: The CSE must be informed about calculation data, methodology, and results. If pay gaps exceed a threshold (to be set by decree), the company must implement corrective measures through mandatory negotiations or a unilateral action plan.
• 100+ employees: The CSE must be consulted (not just informed), and its opinion must be reported to labour authorities. Employees, the CSE, and trade union representatives can request clarification on gender pay gaps. The full remediation process applies.
• 250+ employees: Annual reporting on all indicators.

How does the remediation process work under the French pay transparency law?

Where the Pay Transparency Directive contemplates a single joint pay assessment, France has created a more prescriptive, sequential procedure with multiple mandatory CSE consultation points. Here's how it works:

• First declaration: If a significant pay gap is identified, the employer must either justify the gap using objective, non-discriminatory criteria (and consult the CSE) or immediately initiate negotiations on corrective measures.
• Six-month correction period: If gaps cannot be justified, the employer has six months to remedy them through a collective agreement or unilateral decision, then report the amended indicator to authorities.
• Second declaration: If differences remain unjustified or uncorrected, the company must conduct a joint assessment with employee representatives.
• Twelve-month deadline: A collective agreement or action plan must be filed with labour authorities within 12 months of the declaration period opening.

This creates significantly more complex compliance steps than the Pay Transparency Directive requires, with CSE opinions carrying formal weight and needing to be transmitted to administrative authorities at each stage.

Are pay ranges mandatory in job advertisements in France?

The Pay Transparency Directive gives employers some flexibility, requiring pay information to be provided “in a manner…such as in a published job vacancy notice, prior to the job interview or otherwise”.

France takes this further by mandating that pay ranges must appear in job advertisements themselves - creating an earlier and more public disclosure requirement. If there's no written job offer, the information must be provided in writing before or during the interview. This is stricter than EU Pay Transparency Directive requirements.

Employers are also prohibited from asking candidates about their pay history during current or previous employment, aligning with the Pay Transparency Directive's provisions but with France's characteristically robust enforcement approach.

Are pay secrecy clauses banned in France?

Employment contracts can no longer include clauses prohibiting employees from disclosing their pay. This applies as soon as the law comes into force - employers should audit existing contracts and remove any such provisions.

Categorisation and work of equal value

The concept of work of equal value already exists in French law, taking into account professional knowledge, experience, responsibilities, and physical or mental strain. The French pay transparency draft law expands this by explicitly adding non-technical skills (soft skills) and working conditions.

Categorisation of employees performing work of equal value must follow a hierarchy: company agreement first, then branch agreement, then (if neither exists) a unilateral employer decision after CSE consultation, valid for three years.

Can employees request pay information in France?

Employees in France can request in writing - directly or through representatives - information on their own pay level and the average pay by gender for their job category. Employers must respond within a timeframe to be defined by decree and remind employees annually of this right.

Where the number of employees in a category falls below a threshold (also to be set by decree), the employer is not required to disclose this information but must inform the employee accordingly.

Burden of proof

Where an employer fails to meet transparency obligations, the burden of proof shifts entirely to them - they must demonstrate their decisions were based on objective, non-discriminatory criteria.

Employees can compare their pay with that of previous employees or employees in other companies where pay rules are set by a common collective agreement at group or economic and social unit level (i.e., there is a single source).

What are the penalties under the French pay transparency law?

Employers in France may face fines of up to 1% of total payroll, rising to 2% for repeat offences, as well as fixed penalties for specific breaches.

• Administrative fines. France provides specific penalty caps that create clear financial exposure. Administrative fines can reach up to 1% of total payroll for major violations – including failure to comply with reporting and consultation obligations, incorrect or incomplete declarations, and failure to negotiate or take corrective measures. For repeat offences, this doubles to 2%. 
• Fixed penalties of €450 per breach apply to other violations in France, such as failure to respond to employee information requests or non-compliant job advertisements. These penalties also increase for repeat offences.
• Additional risks: French companies may also face exclusion from public tenders for non-compliance with pay transparency obligations. However, while the Ministry of Labour in France has mentioned this provision, it’s not included in the preliminary draft.

What is the timeline for implementation?

France’s implementation of the EU Pay Transparency Directive is expected to be debated in Parliament by the end of 2026. Key dates to note:

• Immediate effect (on enactment): Job advertisement transparency requirements, ban on pay secrecy clauses.
• Within one year of promulgation (or as set by decree): Most provisions will enter force. Provisions regarding the right to request pay information will apply from the date of entry into force of the agreements or unilateral decision of the employer determining the categories of employees, and no later than one year after the promulgation of the law.
• By 1 June 2030: Requirement for companies with fewer than 150 employees to report the pay gap indicator by employee category.

What should employers do to prepare for the French pay transparency law?

Employers operating in France should take the following steps:

1. Review recruitment practices: Ensure all job advertisements include pay ranges and that hiring managers are trained not to ask about pay history.
2. Audit employment contracts: Remove any pay secrecy clauses from existing contracts and template documents.
3. Assess your reporting obligations: Companies with 50–99 employees that would be exempt under the Pay Transparency Directive must now prepare pay transparency infrastructure.
4. Establish job categorisation systems: Engage with collective bargaining processes to establish work-of-equal-value categories. Absent agreement, employers must make unilateral categorisation decisions (valid for three years) after CSE consultation.
5. Prepare for CSE consultation: Companies with 100+ employees should review their CSE engagement processes to accommodate the multi-stage consultation requirements.
6. Monitor implementing decrees: Key details - including the exact threshold triggering joint pay assessment obligations and the timeframe for responding to employee information requests - will be confirmed by decree.

Looking ahead

The preliminary draft’s expanded scope, enhanced procedural requirements, and robust penalty framework create a significantly more demanding compliance environment than many employers may have anticipated.

We'll continue to monitor developments as the bill progresses through Parliament and implementing decrees are published. For tailored advice on preparing your French operations for these new requirements, please contact our PTD team for advice on French Pay Transparency Directive compliance.