Germany’s Entgelttransparenzgesetz (Pay Transparency Act), in force since 2017, gives employees the right to know what their colleagues earn. Most employees in Germany have never used it. Here is what the law actually provides and how to use it.
What the Law Provides
Employees in companies with 200+ employees have the legal right to request their employer to disclose the average salary of at least 6 comparable employees of the opposite gender who perform similar tasks. The request must be processed within 3 months. The employer must provide the median (not average) monthly salary for the comparison group. The right is individual and confidential — your colleagues are not told you asked, and you are not told who the comparison group is.
The Limitations
The law only covers companies with 200+ employees. The “opposite gender” framing was designed as a tool against gender pay gaps — its use for general salary benchmarking is a secondary application. The comparison group must have at least 6 people; if the employer cannot find 6 comparable employees of the opposite gender, they can decline to provide a figure. And crucially: the law creates a right to information, not a right to equal pay. If you discover you earn less than the median, the law does not automatically entitle you to a raise.
Practical Use: How People Actually Use It
The law’s primary practical use is providing salary data that justifies a salary negotiation conversation. If you discover through the Auskunftsanspruch (information claim) that the median salary for your role is €500/month higher than what you earn, you have specific, legally-obtained data for a salary discussion. The request itself also signals awareness — employers know that employees who file formal requests have done their homework. The data point, once obtained, is most useful in the 3–6 months before your annual review cycle.
How to Submit the Request
In companies with a Betriebsrat (works council): the request goes through the works council. In companies without: the request goes directly to HR. The request must specify the comparison group (comparable job level, similar tasks). Template letters are available from DGB (German Trade Union Federation) and consumer advocacy organisations. The process is formal but not adversarial — most HR departments process them as a routine administrative task.
