Europe Mandates Employers to Disclose Salary Early in Hiring Process

In Europe, new regulations are requiring employers to disclose salary ranges at the start of the recruitment process, aiming to increase pay transparency. Italy has already implemented these rules, and Greece is advancing similar legislation that mandates employers to provide detailed compensation information, including bonuses and benefits, while prohibiting questions about candidates' previous salaries.

This shift contrasts with the traditional hiring approach in Israel, where candidates often learn about salary only late in the process or must guess and state their expected pay early on. The European model challenges employers to ensure their internal pay structures are consistent and justifiable, as publishing salary ranges externally obliges them to explain pay differences among current employees based on experience, tenure, and responsibilities.

Yulia Levy, a CPA from Elliot Global Israel, highlights that salary transparency is not just a social or HR issue but a managerial and financial change requiring companies to have clear and equitable pay policies. Without such clarity, revealing salary ranges could expose internal tensions previously hidden.

In Israel, there is currently no legal requirement to disclose salaries in job ads, and most still omit this information. However, pressure for transparency is growing due to candidates' access to salary surveys, professional groups, and global company standards. Alon Pinchas, CEO of WeCcelerate, notes that lack of transparency is increasingly seen as a trust issue by candidates and that early salary disclosure can save time, reduce disappointment, and improve decision-making for both parties.