Salary compensation report – new obligations for certain businesses

Based on the Remuneration Transparency Act (Act on the promotion of remuneration transparency between women and men) published last year particular large businesses (with more than 500 employees and legally obligated to prepare a management report) have to prepare a so-called salary compensation report according to § 289 HGB (German Commercial Code). This obligation applies in 2018 for the first time. According to the legal stipulations these businesses have to report as follows (§ 21 section 1 EntgTranspG):

  • their measures concerning the promotion of the equality of women and men and their effects as well as
  • their measures for the creation of equal pay of women and men.

Businesses subject to collective labor agreements or businesses voluntarily applying such agreements have to prepare the report once every five years and all other businesses subject to the obligation have to prepare the report once every three years whereas the reporting period covers five or three years each. Regardless of the business year the reporting period is always the calendar year. The salary compensation report is supposed to be disclosed in the German Federal Gazette as attachment to the management report. However, the management report only serves as legislative disclosure medium. The salary compensation report is not part of the management report and is not audited by the auditor.

In case of any questions, please see our website where we have provided a podcast under “Service/Podcasts” with further information in this context. Otherwise please do not hesitate to contact us directly in case you have any specific questions.