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UK job ad salary transparency law set to change hiring rules

UK job ad salary transparency law set to change hiring rules

The UK government plans to make salary information mandatory in job advertisements under a new law, according to HR Grapevine. The Prime Minister revealed the plan using the phrase “Say what you pay,” though the article did not name the Prime Minister or the specific legislation involved.

No start date for the new law has been announced. Early consultation analysis shows strong support, with 94% of respondents overall backing the measure and 93% of business respondents in favour, according to HR Grapevine reporter Liam Soutar.

What the proposal covers

Employers advertising a UK vacancy would need to state the salary or salary range in the advertisement itself. “Say what you pay” signals an intent to make pay disclosure a default expectation rather than an optional extra.

The consultation figures suggest a mandate to proceed. Business support is only one percentage point below the overall figure, which matters because employer groups often resist mandatory pay disclosure. That narrow gap indicates limited organised opposition during consultation.

Unclear is whether the requirement will apply to all employers or only those above a size threshold. The announcement does not specify exemptions for small businesses, internal-only vacancies, or roles where pay is genuinely negotiable. HR and payroll teams should watch for draft regulations clarifying these points.

How this differs from existing UK practice

Existing UK pay transparency measures are narrower than what is proposed. Since 2017, employers with 250 or more staff must publish gender pay gap data, but that is annual reporting, not a per-advertisement requirement.

The Equality Act 2010 makes it unlawful to ask about salary history in some circumstances, and certain employers must consider publishing salary ranges under voluntary charters. But there is no general legal duty to state pay in a job advert.

This proposal would move the UK closer to parts of the United States, where states such as California, Colorado, New York and Washington require salary ranges in job postings. It would also align with the EU Pay Transparency Directive, which member states must transpose by June 2026 and which requires pay information in job advertisements. The UK is not bound by that directive after Brexit, but the direction of travel is similar.

UK job ad salary transparency law set to change hiring rules (illustration)
Photo: Salary Brook Local Nature Reserve pond 2 by Dudley Miles, CC BY-SA 4.0

Practical implications for HR and payroll teams

The most immediate task is auditing current job advertisement templates. Many UK employers already include salary ranges, particularly in sectors with acute skills shortages. Others omit pay details as a deliberate recruitment strategy, often to avoid internal comparisons or to leave room for negotiation.

Once the law takes effect, that flexibility narrows. HR teams will need to agree salary ranges before advertising a role, requiring closer coordination between hiring managers, HR and payroll. Ranges that are too broad may satisfy the letter of the law but undermine its purpose. Ranges that are too narrow may deter applicants or create rigidity in offers.

Payroll teams will need to ensure advertised ranges are consistent with actual pay data. If an advert states a range that does not match what current employees in similar roles earn, the discrepancy will be visible to both applicants and existing staff. That is where the warning about tensions over existing staff pay becomes relevant, even though the HR Grapevine article does not address it directly.

A sensible preparation step is to run a pay audit across roles likely to be advertised in the next 12 months. Identify where current salaries sit relative to market rates and decide whether advertised ranges should reflect internal pay bands, external benchmarks, or both.

What remains unknown

Several important details are missing. The government has not said whether the law will require a specific format, such as an annual salary or an hourly rate. It has not said whether employers must include bonuses, commission or other variable pay in the advertised figure. It has not said whether the requirement applies to roles advertised through recruitment agencies, where the employer may not control the advert directly.

There is also no indication of enforcement. The announcement does not say which body will monitor compliance, what penalties will apply, or whether individuals will have a right to bring claims. Employers should not assume the rules will be toothless, but they should also not assume a specific enforcement mechanism exists until draft legislation is published.

The lack of a start date is significant. Primary legislation can take many months to pass, and secondary regulations may be needed to set out the detail. Employers have time to prepare, but the direction is clear enough that waiting for final rules before acting would be a mistake.

Steps to take now

First, review current job adverts and remove any that omit salary information where a range could reasonably be stated. This is a low-cost change that reduces future compliance risk.

Second, document pay bands for common roles. If no formal bands exist, start with the roles most frequently advertised. This work supports the new law and also helps with equal pay risk and gender pay gap reporting.

Third, brief hiring managers on the change. Managers who are used to advertising without pay details may need to understand why the approach is shifting and what it means for their recruitment timelines.

Fourth, monitor government announcements for draft legislation. The consultation analysis has been published, but the legislative vehicle has not been identified. It could be a standalone bill or part of a wider employment rights package.

The proposal is not yet law, and the details could change. But the consultation response and the Prime Minister’s public commitment suggest that mandatory salary disclosure in UK job adverts is a matter of when, not if.

Sources: HR Grapevine

Photo: Job Advertisement Board in Shenzhen -01 by Aimaimyi, CC BY-SA 3.0

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