Changes in HR processes at the turn of the year 2025/2026

EU Pay Transparency Directive

Under the EU Pay Transparency Directive, companies must demonstrate gender-neutral and objective pay criteria by June 2026 and report regularly on pay structures. Employees have the right to know the average remuneration of comparable employees.

To-do list: Introduce modern job evaluation procedures with clear functional criteria, review existing salary data for equal treatment, inform employees about criteria, set up internal reporting and open communication about salary ranges in the recruiting process.

Public contracts only for companies that adhere to collective agreements

The new Collective Bargaining Compliance Act is intended to ensure that companies are only considered for public contracts with a contract volume of 50,000 euros or more if they grant their employees certain collectively agreed working conditions. It particularly affects sectors with high collective bargaining coverage and also extends to subcontractors. Note: Companies that take on contracts for the federal government must in future submit a declaration of compliance with collective agreements; Violations may result in exclusion from further contracts and contractual penalties.

To do: If necessary (if public contracts are planned), check existing employment contracts and remuneration structures for compliance with collective agreements and document evidence, recalculate personnel costs for future contracts; procurement procedures already initiated and ongoing contracts remain unaffected.

Company cars

When providing a company car, the driving licence will in future only have to be presented once at the beginning of the provision; the legislative process has not yet been completed, and the regulation will come into force after it has been announced.

To-do list: Add a corresponding clause to company car provision agreements and ensure that provision agreements such as vehicle use agreements are drawn up and archived in a legally compliant manner.

New ELStAM from 2026 and private health insurance

From 2026, data will be exchanged between private health and long-term care insurance companies, tax authorities and employers, for which two new ELStAM will be introduced. The data will be provided electronically, paper certificates will no longer be required, with a transitional arrangement until 2027 in case of technical problems.

Tax-free active pension and fixed-term contracts for pensioners

From 2026, fixed-term employment contracts with pensioners who have reached the standard retirement age will be made easier without any specific reason, subject to upper limits. Under the Active Pension Act, a tax-free active pension of up to €2,000 per month is planned. However, this only applies from the age of 67.

Minimum wage adjustments in 2026 and 2027

On 1 January 2026, the statutory minimum wage will rise to £13.90 gross per hour, increasing the marginal employment threshold for mini-jobs to £603. On 1 January 2027, the minimum wage is set to rise to €14.60, which means that the marginal employment threshold is expected to increase to €633.

To-do list: Identify affected wages and adjust them in the payroll accounting in good time, observe industry-specific minimum wages, inform employees and managers, and adjust working hours for mini-jobs if necessary.

Obligation to record working hours

Although the obligation to record working hours electronically has not yet been implemented in the Working Hours Act, it is already a de facto obligation due to ECJ requirements and BAG case law. Since 1 January 2025, working time regulations may be made available digitally. Companies without an electronic system should introduce transparent and complete digital working time recording in order to avoid legal disputes, e.g. regarding continued payment of remuneration and overtime.

To-dos: Select suitable software or app, implement system and integrate it into HR processes, revise working time models and guidelines for recording, ensure data protection-compliant storage.

New developments in the European AI Regulation (AI Act)

The European AI Regulation requires that AI systems used be classified according to risk categories and high-risk systems be identified, combined with transparency obligations and codes of conduct. From August 2026, most obligations will become binding, especially for high-risk AI in the HR area, such as in the selection and monitoring of employees. Companies must ensure cybersecurity, documentation, labelling of AI systems and information obligations towards employees.

To-dos: Classify AI systems into risk groups, establish internal terms of use and codes of conduct, appoint qualified supervisors, carry out risk assessments, involve employee representatives, make processes transparent and organise training for HR and managers.