The European Union’s Pay Transparency Directive has come into force in Portugal, introducing new rules for both employers and job seekers.

Companies can no longer ask candidates about their previous salaries, while employees now have the right to request information on the average pay for their role and comparable positions within the company. Employers must provide a response within two months.

Large companies will face an additional obligation: regularly publishing data on gender pay gaps. If an unjustified pay disparity exceeds 5%, the company will be required to carry out a further review.

The change is particularly significant for expatriates. Many foreign professionals have previously accepted job offers without being able to assess whether the proposed salary was in line with market rates or comparable to that of their colleagues. Under the new rules, such information will be available through official channels. For those seeking employment in Portugal, salary negotiations are set to become far more transparent and predictable.