If you hire in the US or the EU, you probably have to say what the job pays. In the US, a growing number of states and cities require a pay range in job postings. In the EU, the Pay Transparency Directive requires employers to give applicants the initial pay or pay range before the interview, and to keep job titles and vacancy notices gender-neutral. The rules differ in the details, so this guide explains the pattern, what to put in your job description, and what to avoid.
This is general information and not legal advice. Rules change and vary by location and employer size. Check the current rules where you hire, or ask an employment lawyer.
Why pay transparency matters
Pay transparency laws exist to reduce pay gaps between groups of workers, because people who do not know what a role pays negotiate from a weaker position. They also help employers. A posted range saves time for both sides, because candidates who cannot accept it do not apply, and the ones who do arrive with realistic expectations.
The US: a patchwork of state and city rules
There is no single US federal rule requiring a salary range in a job posting. Instead, states and cities have passed their own. Examples include:
- Colorado has required pay ranges and a description of benefits in postings since 2021.
- New York City has required a minimum and maximum salary in job advertisements since November 2022, and New York State has a similar rule.
- California and Washington have required pay scales in postings since January 2023 for employers above a size threshold (15 or more employees at the time those rules began).
More states have followed. The key points to check for each location are which employers are covered, whether the rule applies to remote jobs that could be done from that location, what counts as a posting, and whether benefits must be included. If you recruit in several places, the safest approach is to include a pay range in every posting.
Many US states and cities also ban asking applicants about their pay history. Even where there is no ban, it is good practice not to anchor an offer on someone's previous salary.
The EU: the Pay Transparency Directive
The EU Pay Transparency Directive (Directive (EU) 2023/970) sets common rules across member states. For hiring, its main points are:
- Pay information before the interview. Applicants have the right to receive information about the initial pay, or its range, based on objective and gender-neutral criteria. It can be given in the vacancy notice or before the interview.
- No questions about pay history. Employers must not ask applicants about their pay in current or previous jobs.
- Gender-neutral wording. Vacancy notices and job titles must be gender-neutral, and the recruitment process must be non-discriminatory.
Member states had until 7 June 2026 to bring the directive into national law. How each country has done so, and how fully, varies, so check the national rules where you hire. The UK is not an EU member and is not covered by the directive, but gender-neutral wording and clear pay information are good practice there too.
What to put in your job description
| Element | What to include |
|---|---|
| Pay range | A minimum and maximum, with the currency and the period (per year, per month or per hour) |
| Variable pay | Bonus or commission, and whether it is guaranteed or depends on performance |
| Benefits | Leave, health cover, pension or retirement contributions, equipment and learning budget |
| Location rules | For remote roles, whether pay is the same everywhere or depends on where the person lives |
| Job title | A neutral title, such as "Sales Representative" rather than "Salesman" |
A line such as this is enough: "Salary: $62,000 to $78,000 per year, depending on experience. Annual bonus of up to 8%. Health cover, 25 days' leave and a learning budget."
How to set a range that is honest
- Start from what you will actually pay. The range should be the real range the company is prepared to offer for the role, not an aspirational one.
- Check it against current employees. If your range for a new hire is far above what people already in the same role earn, that is a pay equity problem to solve, not hide.
- Keep it reasonably narrow. A range of $40,000 to $120,000 may meet the wording of a rule but does not help a candidate, and it undermines the purpose of the rule.
- Explain what moves a person within the range. Experience, certifications or location, for example, so that candidates can see where they might fall.
What to avoid
- "Competitive salary" and "DOE". These do not meet the rules where a range is required, and they do not help candidates.
- Asking for salary history. It is banned in many US places and in the EU directive, and it carries earlier pay gaps into the new job.
- Gendered words. Titles such as "Salesman", and language that implies one gender, should be replaced with neutral versions.
- Different ranges in different places. If a posting on your website and on a job board show different ranges for the same role, you have created your own problem.
A short checklist
- Is there a pay range with currency and period?
- Does the range reflect what you will actually pay?
- Are bonuses and benefits described?
- Is the title gender-neutral?
- For remote roles, have you said whether pay depends on location?
- Have you removed any question about previous pay from your forms and interviews?
- Have you checked the rules in each place you recruit?
Where to go next
Add the pay information to your job description template, and see our full guide to writing a job description for the rest of the structure. For a refresher on which document is which, read job description vs job posting vs job specification.
Frequently asked questions
Do I have to include a salary range in every job description?
Not everywhere, but in a growing number of places the rule applies to the job posting. It is simplest, and good practice, to include a range every time.
Does the EU directive apply to small employers?
The directive's rules on pay information for applicants are written for employers in general, while other parts, such as pay reporting, depend on the size of the employer. How each country has applied them can differ, so check the national rules where you hire.
Can I still negotiate within the range?
Yes. The range sets the limits, and you can still decide where in it a candidate falls, based on objective criteria such as experience and skills.
What if I hire remote workers in several countries?
Include the pay information that applies to each place you recruit, and say clearly whether pay is the same for everyone or adjusted by location.
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