Salary Transparency: What UK employers need to know now

The UK Government is pressing ahead with proposals to introduce greater salary transparency, a move aimed at addressing persistent gender and pay inequalities in the workplace.  

While not yet law, the suggested reforms indicate a significant shift in expectations around how employers advertise and communicate pay. Jurit’s Head of Employment Law, Adrian Hoggarth, explains how employers should begin preparing now for the likely changes.

What’s being proposed?

In March 2024, the Government published its response to the “Transparency in Pay” consultation, reinforcing its commitment to tackling pay gaps, especially gender-based disparities.

Key proposals included:

• Mandatory salary bands on job adverts
  Employers would need to state the expected salary or salary range when advertising roles.
• Right to request salary details
  Job candidates could be given the legal right to request salary information during the recruitment process.
• Reporting on pay progression
  Some larger employers may also be required to report on how pay increases within their organisation over time.

While the details are still under consultation, and no legislation has yet been introduced, the direction of travel is clear: more openness around pay.

Why is this happening?

Research shows that when salaries are hidden, women and minority groups are more likely to be underpaid. The Government hopes that greater transparency will:

• Help close gender and ethnicity pay gaps
• Encourage fairer recruitment practices
• Empower jobseekers to negotiate more effectively

What should employers do now?

Although the new rules are not yet in force, you might want to starting thinking about you would respond to this requirement within your business. Key considerations might include:

Auditing existing pay structures

By auditing your business now, you can identify inconsistencies or inequalities in your pay structures, allowing you to set a baseline on equal pay. The audit will enable you to flag up potential pay gaps that could become problematic once salary transparency becomes mandatory.

Reviewing recruitment policies

Employers should start including salary bands in job adverts as standard practice. Not only does this get ahead of proposed regulation—it also boosts trust and application rates.

Training hiring managers

“Interviewers and line managers need to be briefed on how to discuss pay transparently and legally,” says employment lawyer James Karim at Mills & Grey. “Missteps at this stage could result in discrimination claims or reputational harm.”

Preparing for internal questions

Once salary ranges become public, current employees may begin comparing their pay. Employers should be ready to justify differences based on objective criteria such as experience, location or performance.

Updating policies and contracts

If candidates will soon have a right to request salary data, recruitment policies and employment contracts may need updating to reflect new processes and protections.

Benefits of Acting Early

Some businesses have already seen advantages from voluntarily embracing salary transparency. These include:

• Increased job applications and more diverse candidates
• Improved trust among employees
• Reduced likelihood of equal pay claims

Being transparent about pay isn’t just about legal compliance, it’s about demonstrating a culture of accountability and fairness which will stand your organisation in good stead when it comes to attracting and retaining talent.

What’s next?

The Government is expected to publish further details or potential legislation in late 2025 or early 2026.

In the meantime, employers should treat salary transparency not as a future obligation—but as a current opportunity to build a more equitable and resilient organisation.

If you would like help and support with the issue of pay transparency within your organisation, our employment law team can provide further help and support on how to prepare. Get in touch for more information.