Salary transparency means making pay information visible: salary ranges in job adverts, clear pay bands inside a company, the right to ask how your pay is set, and published reports on pay gaps. Employers in India are not all at the same point. This guide explains what Indian law currently requires, what the European Union's newer rules require for jobs located there, and how to ask for pay information politely and effectively.
Reviewed on 9 October 2026. Legal summaries below are simplified for job seekers and are not legal advice; check the cited text or a qualified adviser for your situation.
Four levels of pay transparency
It helps to separate four different things that people call "salary transparency":
| Level | What it looks like | Who benefits |
|---|---|---|
| Ranges in job adverts | The posting states the pay range for the role | Applicants deciding whether to apply |
| Internal pay bands | Each grade has a published range and clear progression criteria | Employees planning promotions and raises |
| Right to information | An employee can ask how their pay compares with others doing similar work | Employees checking for fairness |
| Pay gap reporting | The employer publishes aggregate pay gaps, for example by gender | Everyone assessing the employer |
An employer can be open at one level and closed at another. A company might publish bands internally but never put ranges in adverts.
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The main central law on wages is the Code on Wages, 2019. The government made it and the other three labour codes effective from 21 November 2025, according to the PIB release of that date. For pay transparency, the relevant provisions are:
- No gender discrimination in wages (section 3). An employer must not discriminate among employees on the ground of gender in matters relating to wages for the same work or work of a similar nature. The employer also cannot reduce anyone's wages to comply, and must not discriminate on the ground of sex while recruiting for the same or similar work, except where a law restricts women's employment in that work.
- What "similar work" means (section 2). The Code defines it as work needing the same skill, effort, experience and responsibility under similar working conditions, where any differences are not of practical importance.
- Notice board and wage slips (section 50). Employers must display a notice with an abstract of the Code, category-wise wage rates, the wage period and the date and time of payment, and must issue wage slips in the form the rules prescribe. Some very small agricultural and domestic employers are exempt.
- Appointment letters. The PIB release says the labour codes make appointment letters mandatory for all workers, which gives you written terms to check.
What the Code does not do is equally important. Its text contains no requirement to publish salary ranges in job adverts, and nothing that stops an employer asking about your current salary. Be ready for questions about your current and expected CTC, and decide in advance how you will answer them.
For government posts, pay is set by published pay rules. The recruitment notice is the place to check the pay level for a specific post.
If you apply for or work in a job in the EU
The European Union adopted Directive (EU) 2023/970 on pay transparency on 10 May 2023. Member states had to bring national laws into force by 7 June 2026 (Article 34). It covers employers and workers whose employment relationship falls under the law of an EU member state (Article 2). In practice that usually means a job located in an EU country; working in India for a European company does not by itself bring you under it. Key points from the directive's text:
- Before you are hired (Article 5). Applicants are entitled to information about the initial pay or its range, for example in the advert or before the interview. Employers must not ask applicants about their pay history.
- Pay-setting criteria (Article 6). Employers must make the criteria for pay, pay levels and pay progression easily accessible to workers. Countries may exempt employers with fewer than 50 workers from the progression part.
- Right to information (Article 7). Workers can request, in writing, their own pay level and the average pay levels by sex for workers doing the same work or work of equal value. Employers must reply within two months, and workers cannot be prevented by contract from disclosing their pay to enforce equal pay.
- Pay gap reports (Article 9). Employers with 250 or more workers report by 7 June 2027 and every year after; those with 150 to 249 by 7 June 2027 and every three years; those with 100 to 149 by 7 June 2031.
Each country implements the directive through its own law, and details can differ. If you are considering a role in, say, Germany or the Netherlands, check that country's current rules or ask the employer how it applies them.
How to ask for pay information in India
Even without a legal right to a range, you can usually ask. Keep the tone neutral and practical.
| Situation | What to ask | Why it works |
|---|---|---|
| Before applying or at screening | "Could you share the budgeted range for this role so I can check alignment?" | Saves both sides time if the range is far off |
| Asked for expected CTC | "Based on the role's scope, I'm looking at around ₹X. What range has been approved?" | Gives a figure while inviting theirs |
| Asked for current CTC | Share it accurately if you choose to, and add: "I'd like the offer to reflect this role's scope and market range." | Keeps the focus on the new role |
| At offer stage | "Where does this offer sit within the band for the grade?" | Shows how much room exists |
| As an employee | "What are the band and criteria for my grade, and what would move me up?" | Turns a pay complaint into a plan |
Never inflate your current salary. Employers may ask for payslips or other documents to verify it, and a false figure can lead to a withdrawn offer.
Worked example: reading a pay band (illustrative)
Suppose a recruiter tells Kavya (fictional) that the band for a role is ₹14 lakh to ₹20 lakh a year, and offers her ₹15 lakh.
- Band midpoint: (₹14 lakh + ₹20 lakh) ÷ 2 = ₹17 lakh
- Her offer's compa-ratio: ₹15 lakh ÷ ₹17 lakh ≈ 0.88
An offer at 0.88 sits in the lower half of the band. That is normal for someone new to the level, but if Kavya meets most of the role's requirements she has a specific, criteria-based reason to ask: "Given that I already handle X and Y, could we discuss an offer closer to the midpoint?" She is asking about position in an agreed range, which is easier for a hiring manager to approve than an arbitrary higher number.
Talking about pay with colleagues
Some Indian employment agreements and codes of conduct treat salary as confidential. Read yours before sharing. The EU directive limits such clauses for equal-pay purposes inside the EU, but that does not automatically apply to a job in India. If you suspect gender-based pay discrimination for similar work, keep factual notes and seek advice; section 3 of the Code on Wages is the relevant provision.
For a deeper look at how pay gaps are calculated and why two reports can show different numbers, see the pay gap analysis guide. For building a fair external comparison, use the salary benchmarking guide.
Questions to ask an employer about its pay policy
- Do you publish pay bands for each grade internally?
- How are increments and promotions decided, and are the criteria written down?
- Do you review pay for gender gaps, and do you publish the results?
- Is joining pay negotiable within the band, and what decides placement?
- Will all components of the offer be stated in the appointment letter?
Open answers to these questions tell you a lot about how fairly the employer is likely to treat you later, whatever the law requires.