Denmark’s draft bill on pay transparency submitted for consultation

On 26 February 2026, the Danish Ministry of Employment published a draft bill to amend the Danish Equal Pay Act (ligelønsloven). The bill implements the EU Pay Transparency Directive (EU 2023/970) and introduces new obligations for employers.

The proposed rules include:

Pay transparency in recruitment

Employers must provide job applicants with the starting salary or salary range for the position before entering pay negotiations. Employers may not ask candidates about their salary history from current or previous jobs.

Right to pay information

Employees can request information about their own pay level and average pay levels, broken down by gender, for workers performing the same or equal-value work. Employers must respond in writing within two months.

Objective pay criteria

Pay structures must be based on objective, gender-neutral criteria, including skills, effort, responsibility, and working conditions.

Pay gap reporting

Employers with 100 or more employees must prepare pay reports broken down by gender and worker category. Danmarks Statistik will generate and send these reports to companies free of charge based on existing wage data submissions.

The 5% rule

If a pay report reveals an unjustified gender pay gap of 5% or more in any worker category and the employer has not addressed it within a time period, a joint pay assessment must be carried out with employee representatives.

New national body

The bill establishes Arbejdsmarkedets Institut for Ligeløn (the Labour Market Institute for Equal Pay), which will assist employees with pay discrimination complaints, conduct independent investigations, and publish employer pay data publicly.

Burden of proof

If an employer fails to meet its transparency and reporting obligations, the law presumes that discrimination has occurred. It is then up to the employer to prove otherwise.

Important dates

Consultation deadline: 27 March 2026

Proposed entry into force: 1 January 2027

Note: The Government proposes that the new rules enter into force on 1 January 2027, which is later than the EU’s general transposition deadline of 7 June 2026. The effective date may change during the legislative process.

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