UK's 'Say What You Pay' Law: Salary Transparency or Startup Trap?

Jan de Vries · 2026-11-06

Imagine applying for a job and actually knowing what it pays before you invest hours in the application. That's the idea behind the UK's new 'say what you pay' law, which would require employers to publish salary ranges in job adverts. The goal? To boost transparency, help jobseekers make informed choices, and tackle the persistent issue of pay discrimination. But for European startups, this could be a double-edged sword. ### Why Salary Transparency Matters Pay secrecy has long been a tool for employers to underpay workers, especially women and minorities. By forcing companies to show their cards, the law aims to level the playing field. It's a simple concept: if you know the salary range, you can negotiate better and avoid wasted time. For jobseekers, it's a welcome change. For startups, though, it's a bit more complicated. ### The Startup Dilemma Startups often operate on tight budgets and flexible roles. Publishing a salary range might scare off candidates if the number seems low, or strain finances if it's too high. Plus, early-stage companies might not have set pay scales yet—they're still figuring things out. As Jan de Vries, an e-commerce consultant, puts it: "Transparency is great, but startups need room to grow. A rigid law could stifle innovation before it even gets off the ground." ### How It Could Work The proposal is still in early stages, but it's likely to include: - **Salary ranges in all job ads** – No more 'competitive salary' vague promises. - **Enforcement mechanisms** – Fines for non-compliance, possibly overseen by a government body. - **Exemptions for small businesses** – Maybe startups under a certain size get a pass. ### What It Means for European Startups If the UK implements this law, it could set a precedent for the EU. Some European countries already have similar rules, but a UK-wide mandate would be a big deal. Startups hiring across borders would need to adapt, potentially standardizing pay scales earlier than planned. That could lead to more equitable workplaces, but also more bureaucracy. > "Pay transparency is a step toward fairness, but it must be designed with flexibility for startups. Otherwise, we risk hurting the very companies that drive job creation." – Jan de Vries ### The Bottom Line Salary transparency is coming, whether startups like it or not. The key is to get involved in the conversation early. Founders should start thinking about pay structures now, and policymakers should listen to startup concerns. After all, a law meant to help workers shouldn't end up hurting the companies that employ them. What do you think? Is 'say what you pay' a win for fairness or a burden for startups? The debate is just getting started.