The EU has made its position clear. Soon, waiting until the interview to talk about salary will no longer be enough – candidates should know what to expect from the outset. But what exactly do the rules say? How do you set a reasonable salary range?And what should you as an employer keep in mind when publishing a job ad?
“Salary by agreement.” In many Swedish job ads, it is still far from clear what applicants can actually expect to be paid. But the rules of the game are now changing.
Under the EU Pay Transparency Directive, employers will be required to provide information about the starting salary or salary range early in the recruitment process. The aim? To create fairer conditions, reduce unjustified gender pay gaps and give candidates a clear basis for salary negotiations.
It is not yet clear when the requirements will become Swedish law, but there are good reasons to start preparing now.
Do We Have to Include Salary in the Job Ad Under the Pay Transparency Directive?
No, that is not quite the whole story. What the Directive says is that the information must be provided either in the job ad or during the first contact with the candidate, meaning before the interview takes place.
As an employer, you need to provide information about the starting salary or starting salary range for the position. The information must be provided in a way that enables an informed salary negotiation, and the salary or range must be based on objective, gender-neutral criteria.
Save Time and Attract the Right Candidates
It is not only legislators who are pushing for earlier conversations about pay – candidates are too. A LinkedIn survey found that as many as 91 percent of jobseekers want to see salary ranges in job ads – and that the information affects their decision on whether to apply.
And that is not all. When salary expectations are clear from the outset, you can:
- attract the right candidates
- make the selection process more accurate
- save time by avoiding applications from candidates whose expectations do not match what you can offer
And last but not least, putting your cards on the table shows that you have a well-structured approach to pay – and that you take fairness and equal pay seriously.
Four Ways to Prepare Your Recruitment Process
Even though the Swedish legislation is not yet in place, there is plenty you can do already. And most of these preparations will be valuable regardless of exactly how the final legislation is designed. So where should you start?
1. Map Your Pay Levels and Criteria
Have you already defined starting salaries or salary ranges for different roles? If not, create a framework based on existing salaries, market data and requirements such as experience, responsibility and skills. You should also review the criteria you use when setting pay – and make sure they are clearly documented and easy to explain.
2. Decide How You Want to Present Salary Information
Do you want to state a salary range, a fixed starting salary or another clear figure? Consider what best fits your pay structure and how much variation is reasonable within the role. A range provides flexibility, but it should not be so broad that the information loses its value. The most important thing is that candidates get a clear idea of the salary they could realistically be offered.
3. Update Your Templates
Make sure your job ads and recruitment templates include a clear place for salary information – and that the wording is simple and consistent.
Example wording: “For this role, our salary range is SEK 32,000–37,000 per month. Where the final salary falls within the range will depend on factors including relevant experience and skills.”
4. Support Hiring Managers
Talking about salary early in the process may feel unfamiliar – particularly in a recruitment setting where the conversation can often be tentative at first. Give hiring managers clear guidelines and examples of how to approach the topic. With the right support, it becomes easier to discuss salary early and explain how the salary range has been determined.
Pay Transparency in Recruitment Is Part of a Bigger Picture
It is easy to get stuck on the question of whether salary should be included in the job ad. But the Pay Transparency Directive covers much more than recruitment. It also includes employees’ right to pay information, clearer criteria for pay setting and pay progression, and gender pay gap reporting requirements for larger employers.
That is why it makes sense to view salary ranges in job ads as one part of a broader effort. Do you have clearly defined roles, well-thought-out pay criteria and a structured approach to salary ranges and pay equity analysis? By taking a joined-up approach to these areas, it becomes easier both to communicate salary information to candidates and to create greater transparency for existing employees.
Read more: When Pay Transparency Becomes Law – How Pay Equity Compass Helps You Meet the Requirements
Meet Pay Transparency Requirements With Pay Equity Compass in Flex HRM
Pay Equity Compass in Flex HRM makes it easier to take a structured approach to pay transparency – from job architecture and salary ranges to pay equity analysis. Among other things, it gives you:
- support for structuring roles and evaluating jobs based on objective criteria
- the ability to work with salary ranges directly within your job architecture
- market salary data and other relevant pay data gathered in one place
- support for pay equity analysis, documentation and action plans
- reports and insights that help you explain and follow up on pay differences
Pay Equity Compass supports your work with today’s pay equity analysis requirements. We are also continuously expanding its support for the Pay Transparency Directive as the Swedish legislation takes shape.
Want to learn more? In our recorded webinar, we walk you through Pay Equity Compass and show how the tool can make the work both easier today and smarter in the long term. Watch it whenever it suits you!
🙋 Yes, please – I’d like a guided tour (in Swedish)
Questions or concerns? Contact us and we’ll be happy to help!
Frequently Asked Questions About Salary in Job Ads and Pay Transparency
Does Salary Have to Be Included in the Job Ad?
No. The EU Pay Transparency Directive does not explicitly require salary information to always be included in the job ad itself. However, candidates must receive information about the starting salary or salary range early enough to allow for an informed and transparent salary negotiation, for example in the job ad or before the interview.
When Will the Pay Transparency Rules Take Effect in Sweden?
The new Swedish rules have not yet entered into force, and there is currently no confirmed date for when they will apply. In March 2026, the Swedish Government announced that it did not currently intend to present a legislative proposal. The Government also wants to work towards postponing implementation and renegotiating parts of the EU Directive.
Preparations have not stopped, however. The Government has instructed the Swedish Equality Ombudsman (DO) to continue preparing information and support for employers, as well as a solution for future pay reporting. DO also advises employers to make sure their pay equity analysis processes are already working well.
Once the Swedish rules enter into force, employees’ right to greater transparency around pay setting will apply immediately. Employers will therefore need to be able to explain how pay is determined and why salaries differ. That is valuable to be able to do already today, as both candidates and employees increasingly expect clear answers about pay.
What Is a Salary Range?
A salary range is the interval within which the salary for a particular role would normally fall, for example SEK 35,000–40,000 per month. Where an employee or candidate falls within that range may depend on objective criteria such as skills, level of responsibility and relevant experience.
Can Employers Ask Candidates What They Currently Earn?
No. Under the Pay Transparency Directive, employers must not ask candidates about their current or previous salary. One of the aims is to prevent historical pay inequalities from following people from one job to the next.
How Do You Set a Reasonable Salary Range?
Start with the requirements and value of the role, your internal pay structure and relevant market data. It is also important to have clear criteria explaining why an individual is positioned at a particular level within the range.
How Can Pay Equity Compass Make Salary Ranges Easier to Manage?
In Pay Equity Compass, you can build a job architecture and bring together job evaluation, market salary data and salary ranges for each job profile. Salary ranges can also be viewed directly within the job architecture, providing a practical basis for situations such as recruitment.
