Goodbye, guessing games: Job adverts will have to post salary ranges under new transparency rules
Here we share the background behind the upcoming rules, what the legislation mandates and how it could impact freelancers and contractors across the UK.
The era of guessing games when it comes to published salaries in job listings could soon come to a close in UK recruitment. Prompted by widespread discussion across the employment sector, notably in a LinkedIn post by recruitment director Simon Bucknell declaring “Blimey, it’s happening”: the UK government is moving to eliminate pay secrecy from job advertisements.
Under proposed legislative updates to the UK’s equal pay framework, employers will soon be legally required to publish pay ranges on job postings and prohibited from asking job applicants about their salary history.
Why do hiring companies refuse to list salaries in the first place?
Bucknell, Founder, EMBS Talent Group & Peak Intelligence, supports the change to publicised salary ranges in job adverts but also sees some awkward moments unravelling.
“As a recruiter, I broadly support it. Candidates deserve transparency. It saves everyone’s time, builds trust and stops people wasting annual leave to attend interviews for jobs they would never have accepted. But I can’t help wondering if we’re about to discover the UK’s dirty little secret.
He continued in his LinkedIn post,
Over the last 30 years, I’ve lost count of the number of times a client has told me: ‘Don’t advertise the salary.’ Sometimes that’s about commercial sensitivity. Sometimes it’s about competitors. But very often it’s because they don’t want existing employees discovering that the new hire is being offered more money than people already doing the same job.
What’s changing?
The UK government has launched a 15-week national consultation on Equal Pay and Pay Discrimination aimed at modernising workplace equality rules. Led by Equalities Minister Seema Malhotra, the government’s proposals introduce strict recruitment transparency standards:
Mandatory Salary Disclosure: Companies will no longer be allowed to list vague descriptors such as “competitive salary” or “commensurate with experience”.
According to legal guidance on the UK Pay Transparency Consultation, job adverts must state a clear pay range or salary details. Where roles are filled without a public posting, written pay details must be provided to the candidate prior to the first interview.
Salary history ban: Employers and recruitment agencies will be prohibited from asking candidates what they earned in previous roles, curbing the cycle where historic underpayment follows a worker throughout their career.
Internal pay governance: Large employers will face expanded reporting obligations to ensure internal pay structures are documented and transparent.
Official statements in the Government Consultation Announcement highlight that these measures aim to reduce pay discrimination, streamline hiring and prevent candidates from wasting time on multiple interview rounds for roles that pay below their expectations.
Does the same rule apply to freelancers and contractors?
While the core equal pay legislation directly targets permanent and fixed-term employment roles, the rules for non-permanent workers depend on how the engagement is legally structured:
Genuine freelancers & B2B contractors (Outside IR35 / Self-Employed)
No direct salary mandate
Direct business-to-business (B2B) arrangements between a client and a self-employed contractor operating via a Personal Service Company (PSC) fall outside standard worker or employee status. That is because independent contractors negotiate commercial day rates or fixed project fees rather than receiving an employment wage; clients will not be legally forced to post standard salary bands for independent B2B freelance tenders.
Agency workers & temporary contractors (Inside IR35 / Umbrella)
Targeted rate transparency rules
While standard equal pay laws focus on employees, temporary agency contractors are covered by separate regulatory updates. Under the government’s Make Work Pay: Modernising the Agency Work Regulatory Framework consultation, recruiters and umbrella companies face strict new rules regarding pay disclosure.
End to misleading “assignment rates”
As per the TUC Agency Work Consultation Analysis, agencies and umbrella providers will be required to agree on an actual gross rate of pay (day or hourly rate) with the contractor before an assignment begins. This specifically outlaws the practice of advertising inflated “headline assignment rates” that hide umbrella margins, employer National Insurance contributions, and statutory deductions.
What does all of this mean for the hiring environment?
Employers will need to conduct internal pay audits before listing new vacancies to avoid pay discrepancies when existing staff see published ranges for open roles. This could make the jobs market sluggish to start. Yet, for jobseekers and agency contractors alike, the trajectory could lead to upfront clarity on compensation, which will be a welcome change.
