French firms test salary transparency rules
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In France, several companies are beginning to implement a new directive aimed at reducing pay gaps, particularly between men and women. The law will require employers to share salary information with employees about colleagues in comparable roles.
While business groups like Medef and Les Entrepreneurs voiced opposition, some organizations are proactively adopting the changes.
Ikea, with over 12,000 employees in France, has introduced “salary bands” to show pay ranges for different levels of responsibility, hoping to motivate employees and increase clarity. However, unions at Ikea criticize the bands as difficult to understand and disconnected from annually negotiated minimum pay scales, arguing the company’s approach to transparency falls short.
The health insurer Alan has practiced salary transparency since its founding in 2016, using a single pay scale based on job roles and skills, with salaries not subject to negotiation based on seniority. Alan’s HR director believes this system fosters collective evaluation and attracts talent. Satelia, a startup specializing in remote patient monitoring, also makes all employee salaries public.
The founder notes this practice improves communication and applies pressure on highly-paid employees to perform, while also aiding in ensuring equal pay for men and women. Implementing this transparency does place additional burden on HR departments to justify all salary increases publicly. A recent study found that by late 2025, 54% of companies in France still weren’t prepared for the directive’s full implementation.
