Hiring in 2027: how the EU Pay Transparency Directive and the AI Act change recruitment

Hiring rarely changes overnight. In 2027, though, several developments land at the same time across the EU. Pay becomes something you discuss before the interview. The AI Act's rules for recruitment tools become enforceable. And a large share of applications are now written with help from AI.

This article sets out what is certain, what is still open and what you can already do. Where a date is not yet fixed, we say so.

1. Salary ranges move into the job ad

The biggest change for candidates comes from the EU Pay Transparency Directive (Directive (EU) 2023/970). It applies in every member state, and each country has to write it into national law.

What the directive requires during recruitment:

Pay information up front. Candidates are entitled to know the starting salary or the pay range, either in the job ad or at the latest before the first conversation about terms.
No more salary history questions. Employers may not ask what a candidate earns now or earned before. Negotiation starts from what the role is worth, not from someone's previous pay.
Gender-neutral job ads. Vacancy notices and job titles have to be gender-neutral, and the hiring process must be non-discriminatory.

When does it apply? Member states had until 7 June 2026 to transpose the directive. Several missed that deadline, the Netherlands among them, where the law is now expected during 2027. The exact start date therefore depends on your country. The direction does not.

What you can do now: put the salary range in every job ad. You do not need to wait for the law, and in 2027 an ad that only says "competitive salary" will stand out for the wrong reasons.

2. EU AI Act rules for hiring tools become enforceable

AI used to screen, rank or assess job applications is listed in Annex III of the EU AI Act as high-risk. Under the Digital Omnibus on AI (Regulation (EU) 2026/1744, in force since 27 July 2026), those obligations moved from 2 August 2026 to 2 December 2027. Unlike the pay directive, the AI Act applies directly in every member state.

From that date, an employer using such a system (a "deployer" under the Act) must, among other things:

tell candidates that an AI system is used in assessing them;
assign real human oversight, by people who understand what the system does and where its limits are;
use the system according to the provider's instructions and keep its logs.

Two things already apply today. The ban on emotion recognition in the workplace, which covers candidates too, has applied since February 2025. And the GDPR was not postponed: rejecting a candidate based solely on an automated assessment is already a problem now. For a practical list, see our AI Act and GDPR checklist for recruitment software.

What this means for candidates: in 2027 you can expect an employer to tell you when AI is involved, and you can expect a person to have actually read your application before you are rejected on its content.

3. Applications written with AI are the new normal

Candidates use AI to rewrite CVs, draft cover letters and pick apart job descriptions. That is no longer unusual, and by 2027 it is the norm rather than the exception.

For employers, this means cover letters become more polished and more alike. Writing style says even less about a person than it used to. What still sets candidates apart:

Specifics. A letter that names exactly what someone did and why it fits this role cannot be produced by a generic prompt.
Fit with the role. A strong letter addresses what this particular job asks for. A generic letter sent to ten employers shows in what it leaves out.
The interview. The more similar the paperwork, the more the conversation matters. Go in with questions aimed at the open points for this specific candidate.

A word of caution: detecting AI-written text is unreliable and not worth the effort. What matters is not who wrote the sentences, but whether the content is accurate and relevant.

4. Speed becomes the baseline

When applying gets easier, people apply to more roles at once. Wait a week to respond and good candidates have already accepted a call from an employer who moved within two days.

For employers, that means making sure every application is read quickly, and replying to everyone, including with a rejection. In a tight market, silence is the most expensive response there is.

5. Fair hiring has to be demonstrable

Pay transparency and the AI Act share one idea: hiring fairly is no longer enough, you have to be able to show it. Why did this candidate get this salary offer? Who read this application before it was rejected? Which requirements was the decision based on?

Teams that record this now will not need to change anything in 2027. Teams that still run hiring through scattered emails and spreadsheets will notice the difference the first time a candidate asks for an explanation.

What this means if you are applying

Ask about pay if the ad does not say. Soon it will be your right. It is already a normal question.
You do not have to disclose your current salary. Once the rules apply in your country, employers may not ask.
Use AI as a tool, not a replacement. Let it help you structure, but make sure the examples are genuinely yours. Those are what make the difference.
Look at the AI consent. A careful employer asks explicitly whether you agree to an AI analysis, and lets you apply anyway if you say no.

What this means if you are hiring

Put the salary range in every job ad. Do not wait for the law.
Remove salary history questions from interviews and application forms.
Check your job ads for gender-neutral wording.
Tell candidates when and why you use AI. Make sure a person takes the decision, and that you can show it.
Respond quickly to everyone.

How SelectWiser handles this

No promises about 2027, just what works today:

Salary is required when you create a vacancy, and candidates see it on the application page.
AI analysis only with explicit consent. The box is never pre-ticked, and candidates who decline can still apply.
A person decides. A rejection on content is only possible once someone has opened the CV or cover letter themselves. Reading the AI report alone does not count.
Reasoning instead of a bare number, with interview questions for every candidate, including weaker matches.
No claims about personality or emotion. The analysis stays with the text and the requirements of the role. See AI governance.

Frequently asked questions

When does the EU Pay Transparency Directive apply? Member states had to transpose it by 7 June 2026. Several did not, so the rules start when your country's own law takes effect. In the Netherlands, for example, that is expected during 2027.

Do I have to put the salary range in job ads from 2027? The directive requires that candidates know the starting pay or range in advance: in the job ad, or at the latest before the first conversation about terms. Putting it in the ad is the simplest option and builds the most trust.

Can an employer still ask about my current salary? Until the rules apply in your country, yes. After that, no.

Can employers use AI to assess my application? Yes, but not without informing you, and the AI may not take the decision on its own. From 2 December 2027 the AI Act's high-risk requirements apply on top of that.

Is it a problem if I write my cover letter with AI? No, as long as the content is accurate and yours. Employers assess whether your experience and motivation fit the role, not who phrased the sentences.

Conclusion

Hiring in 2027 is above all more transparent: about pay, about the use of AI and about who makes the decision. For employers who already hire fairly, little changes. If you still post jobs without a salary or keep candidates waiting, 2027 is the year to fix that.

Want to see what a vacancy with a salary, AI consent and a human final review looks like? Start your first vacancy for free, or look at a sample analysis.