Can we still negotiate individual salaries under the pay transparency rules?

The short answer is yes - the EU Pay Transparency Directive doesn’t ban individual salary negotiations. Employers can still adjust offers based on skills, experience, or market demand.

The key is consistency and transparency. If two people in equal roles are paid differently, you need to be able to explain why. If the difference exceeds 5% and can’t be justified by objective criteria, it may trigger a legal obligation to act.

Negotiation is still allowed.

Employers can:

• Offer a salary range and negotiate within it.
• Adjust pay based on proven skills, experience, or scarce expertise.
• Provide non-monetary incentives, like training opportunities or additional leave.

What changes with the Directive:

• Ad hoc or informal exceptions are riskier - they could create unexplained pay gaps.
• Differences of 5% or more that can't be objectively justified may trigger a pay audit and corrective action plan.
• Salary structures need to be formalised, with:
  • Clear job classifications
  • Defined pay bands or grades
  • Documented progression models

Employees should also be able to see how their pay compares within a band, and what’s required to progress.

See also: What does “equal work of equal value” mean, and how do we define it?

Employers can - and should - keep flexibility. But flexibility now needs structure. That means:

• Embedding negotiation within transparent salary bands.
• Training managers to use objective criteria in discussions.
• Documenting and explaining decisions so they can withstand scrutiny.

Negotiation isn't disappearing. But in a pay transparency world, it works differently: decisions must be structured, explainable, and fair.

Done well, pay transparency won't stifle competitiveness. It will strengthen trust by showing employees that opportunities are open, consistent, and credible.