Salary Transparency In 2025: Can It Help You Get A Pay Rise?
Just a few years ago, asking about salary early in the hiring process felt risky – even taboo. Fast forward to 2025, and transparency is encouraged, and sometimes even required by law.
From EU directives to state-level legislation in the US, salary transparency is reshaping how companies advertise roles and how candidates prepare. But the real question is: Can it actually help you earn more?
Here's what's changing – and how to make these changes work in your favour.
The EU Pay Transparency Directive, passed in 2023 and now entering implementation across member states, will soon require companies to publish salary ranges for all roles and provide employees with the right to request pay details. While full compliance isn't mandatory until 2026, many European employers are already adapting their systems.
Meanwhile, in the United States, several states have passed their own laws. New York, California, Colorado, Washington, and Illinois now require employers to include salary ranges in job postings. Some cities (like NYC) go further, enforcing detailed disclosure rules even for internal roles.
According to the Society for Human Resource Management (SHRM), 67% of organizations voluntarily include starting pay in job postings – even in states where it's not yet mandatory.
Many of the world's most influential employers aren't waiting for legislation. Companies like Meta, Microsoft, Salesforce, Deloitte, and PwC have already introduced global pay banding frameworks, citing a desire to build trust and improve retention.
Why? Because transparency doesn't just benefit employees – it helps employers attract talent more efficiently. Payscale research indicates that organisations with transparent compensation practices experience lower employee turnover, highlighting the role of clear pay structures in improving retention.
For jobseekers, this means you no longer have to guess what a 'competitive salary' really means. In many cases, it's right there in the job ad.
Whether you're applying for a role or already in one, you may now be entitled to ask about salary ranges – and companies are increasingly prepared to answer.
In EU countries preparing for the 2026 directive, employers must inform candidates of expected pay ranges during the hiring process – even if not yet required to list them in job ads. In the US, many state laws grant you the right to request this information during interviews.
Here's how to ask:
'Can you share the salary range budgeted for this role?''Is this role aligned to a particular pay grade within the organisation?'
If you're already employed, it's reasonable to ask your manager or HR contact about the pay band for your role – especially if your organisation is transitioning toward a transparent structure.
New transparency laws are reshaping how people negotiate pay in 2025.
Knowing the range gives you leverage. But how you use it matters.
For candidates, transparency means you can tailor your expectations realistically – and confidently. If a posting lists a £75,000–£90,000 range, and you bring strong experience, it's appropriate to ask for the upper half.
If you're in a current role and see similar roles advertised with higher compensation, you have a benchmark. But rather than demand parity immediately, use the information to frame a development conversation. For example:
'I've noticed similar roles are being advertised at a higher range – I'd like to discuss how my performance aligns with that level.'
So far, yes – but not automatically.
Salary transparency laws have influenced negotiation behaviours, with candidates feeling more empowered to discuss compensation openly, as highlighted in this Quartz article. Meanwhile, Payscale's research indicates that employees who perceive their company's pay practices as transparent are significantly less likely to seek new employment opportunities. Specifically, each incremental increase in perceived pay transparency corresponds to a 30% decrease in the likelihood of an employee seeking a new job.
As Caroline Castrillon outlines in her Forbes article, '3 Steps To Negotiate A Higher Salary Before Accepting A Job Offer', conducting thorough market research and preparing for negotiations are key strategies to secure a salary that reflects your value.
According to SHRM, promoting transparency in compensation practices can build trust among employees.
When combined with preparation and performance, transparency often leads to better pay outcomes.
If you're considering a raise conversation, 2025 offers more tools than ever to support you.
Start by reviewing job postings at your current company or among competitors to benchmark your salary. Then, request the pay band for your role if it hasn't already been disclosed. Finally, frame your raise request around value, market alignment, and growth potential – not just comparison.
Consider this real example: Nina, a project coordinator in Berlin, noticed that comparable roles at other firms were listing higher salary ranges. She gathered job ads, checked her company's pay transparency policy, and requested a meeting. Her manager appreciated her professional approach – and within weeks, her salary was adjusted to reflect her market value.
If you're job hunting, look for postings with clear bands – they're a sign of progressive compensation culture. And don't be afraid to bring up compensation early. In most cases, it's not just okay – it's expected.
Salary transparency is about more than just knowing what others earn: it's about knowing your worth. In 2025, the information gap is closing, and with it comes opportunity.
The law may be driving the change. But it's up to you to make the most of it.
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