Prime Minister Andy Burnham has announced plans to require employers to disclose salary information in UK job advertisements, with the aim of improving transparency for jobseekers and addressing pay inequalities. The proposal forms part of the government’s wider effort to improve employment opportunities for young people and could have significant implications for employers, including manufacturers.
However, Make UK, which represents manufacturers, warned that the proposal could create an additional compliance burden for businesses already managing complex employment-law requirements.
Andy Burnhams pay transparency push: Aims and immediate calls
The proposal comes amid wider efforts to increase pay transparency across the European Union and several US states. For UK manufacturers and engineering firms, preparing for the change could involve reviewing job advertisements, internal pay structures and recruitment practices.
On 5 November 2026, Prime Minister Andy Burnham announced plans to make salary disclosure in job advertisements a legal requirement for employers. This policy directly addresses a common frustration among job seekers, particularly young people entering the workforce, who often spend time applying for roles without knowing the potential remuneration.
Burnham argued that applicants should know a job’s salary before investing time and effort in applying.
According to figures cited by the government, 41% of UK employers always publish salary ranges in job advertisements, while 18% always disclose specific salary figures. The government aims to make salary disclosure a standard feature of job advertisements, improving transparency for applicants and potentially helping to expose unjustified pay differences. The Prime Minister is urging businesses to adopt this practice immediately, rather than waiting for the forthcoming legislation.
The proposal forms part of the government’s wider effort to help more young people enter employment or education. Further measures are expected following the final report of the Milburn Review into youth inactivity, led by former health secretary Alan Milburn.
Industry concerns: A new compliance burden?
While the intent behind increased pay transparency is to foster fairness, manufacturing leaders are wary of the practical implications. Make UK, the manufacturers’ organisation, voiced concerns through its Legal Director, Jay Bhayani. Bhayani acknowledged the potential benefits of greater pay transparency but warned that making salary disclosure compulsory could create another compliance burden for employers.
Bhayani warned that disclosing salaries for new recruits could create tension where market rates have risen faster than the pay of existing employees. Differences between new-hire offers and established employees’ salaries could prompt questions about internal pay fairness.
Manufacturers also want flexibility to set pay according to candidates’ skills and experience. Bhayani argued that employers may not fully determine a role’s seniority, responsibilities or appropriate salary until they have assessed candidates.
Make UK warned that requiring employers to disclose pay before recruitment is complete could limit flexibility in setting offers. Whether this would reduce hiring or constrain growth remains uncertain.
Total remuneration can include base salary, bonuses, overtime payments, pension contributions and other benefits. Bhayani argued that employers should be able to publish meaningful salary ranges that reflect the role’s responsibilities and allow for differences in candidates’ experience. Employers may also need to explain the wider benefits offered alongside base pay.
A global trend: EU and US precedents
The UK’s proposed policy does not exist in a vacuum; it reflects a broader international shift towards greater pay transparency. Manufacturers operating across multiple jurisdictions are increasingly facing diverse regulations that aim to close pay gaps and empower jobseekers.
Europe’s directive sets a benchmark
The European Union adopted its Pay Transparency Directive (Directive (EU) 2023/970) in 2023. Member states were required to transpose the directive into national law by 7 June 2026, although the implementation of specific obligations depends on national legislation.
The directive aims to strengthen the principle of equal pay for women and men performing equal work or work of equal value, partly by increasing transparency around pay and pay-setting practices.
The directive requires employers to provide applicants with information about the initial pay or its range in time for informed salary negotiations, prohibits employers from asking applicants about their pay history, and establishes requirements intended to make recruitment and pay-setting processes gender-neutral.
The directive also introduces gender-pay-gap reporting obligations that vary by employer size. Employers with at least 250 workers must report annually, with the first report due by 7 June 2027.
Under the directive, a joint pay assessment may be required where reporting identifies a pay gap of at least 5% in a worker category that cannot be justified on objective, gender-neutral grounds and the employer fails to address it within the prescribed period.
Although the transposition deadline passed on 7 June 2026, implementation has required action at national level. The extent of any remaining gaps should be assessed using current information on each member state’s legislation.
Varied approaches across US states
In the United States, pay transparency laws have primarily emerged at the state and city levels, creating a patchwork of regulations. Washington State’s Equal Pay and Opportunities Act requires covered employers to disclose wage or salary ranges and benefits in job postings.
An amendment in 2025 introduced a five-business-day grace period for corrections and clarified that fixed rates could be listed instead of ranges. The EPOA applies to companies with at least 15 employees, including remote roles.
California’s Senate Bill 1162, which took effect on 1 January 2023, expanded pay-transparency requirements, including pay-scale disclosures in job postings for covered employers with at least 15 employees and pay-data reporting obligations for qualifying employers. California subsequently adopted Senate Bill 642, effective 1 January 2026, which amended aspects of the state’s pay-transparency and equal-pay framework. The precise changes to the definition of “pay scale” should be described using the enacted statutory text.
This Californian law also extended the statute of limitations for pay transparency violations and broadened the definition of “wages” to include all forms of compensation.
Colorado’s Equal Pay for Equal Work Act, enacted in 2019 and effective from 1 January 2021, prohibits certain forms of pay discrimination, requires covered employers to disclose compensation and other information in job postings, and protects employees’ rights to discuss pay.
New York State and New York City have also introduced pay-transparency requirements for covered job advertisements, although their rules and coverage differ.
Engineering sector implications and adaptation
For the engineering and manufacturing sectors, these new transparency requirements present particular challenges and opportunities. Recruiting for highly specialised roles can make it difficult to set salary ranges that reflect differences in skills, experience and responsibilities. Employers argue that overly rigid pay bands could limit their flexibility to make competitive offers to candidates with specialised skills or unusually relevant experience.
Manufacturers may wish to review their pay structures before the proposed legislation takes effect, ensuring that advertised ranges are consistent with internal pay policies and reflect relevant differences in responsibilities and experience. Reviewing pay structures in advance could help employers identify unexplained disparities and reduce the risk of disputes. A clear, well-communicated compensation philosophy will become critical, especially for roles where market demand or niche skills command premiums.
Greater transparency could also help engineering firms attract younger applicants by making salary expectations clearer and demonstrating a commitment to fair pay. By openly displaying salary ranges, companies can demonstrate a commitment to fair pay, potentially enhancing their employer brand in a competitive talent market.
In a competitive labour market, manufacturers will need to consider how salary transparency fits into their wider recruitment and retention strategies.
Beyond compliance: Strategic workforce planning
Compliance is only one aspect of preparing for salary transparency. Manufacturers could also incorporate pay reviews into their wider workforce-planning strategies. This could involve regular pay audits to identify unexplained disparities and determine whether differences reflect legitimate factors such as responsibilities, experience or performance. Such audits can help ensure pay equity across similar roles, fostering a more engaged and satisfied workforce.
Companies should also communicate the full value of their employment offers. Alongside base salary, benefits, professional development opportunities and workplace culture can influence candidates’ decisions. Communicating these aspects effectively can differentiate an employer, especially when base salaries might be competitive but not leading.
The government has also highlighted Siemens Mobility’s commitment to providing 10,000 work-experience opportunities in engineering and technology as part of its wider youth-employment drive. Such programmes can complement pay transparency by helping young people gain practical experience. Such programmes offer valuable practical experience. The company’s £360 million investment in British rail manufacturing underscores its commitment to the UK industrial base.
For manufacturers operating in Africa or considering expansion into the continent, international developments in pay transparency may offer useful lessons for future recruitment and workforce policies. Although legislation varies between countries, expectations around fair pay and transparency may increasingly influence recruitment and retention practices.
UK manufacturers can use international experience to prepare for possible changes to recruitment and pay-disclosure requirements.
