BAG Strengthens the Principle of “Equal Pay”: One Comparator Is Enough

At the end of 2025, the German Federal Labour Court (Bundesarbeitsgericht, BAG) issued a landmark decision reinforcing the principle of equal pay for equal work. The court clarified that employees no longer need to compare entire groups or present statistical averages to demonstrate possible pay discrimination. A single comparator — a colleague of the opposite sex performing equivalent work but receiving higher pay — is sufficient to trigger a presumption of discrimination.

A New Approach to Evidence

Until now, employees often had to present complex statistics and broad salary comparisons. Employers could argue that individual deviations were the result of “market conditions,” “special duties,” or “historic structures.”

The BAG is now shifting the focus to the job itself.
If two employees perform comparable tasks, share similar responsibilities and qualification requirements, and one of them — of the opposite sex — is paid more, this alone is enough to raise a legal presumption of discrimination. At that point, the burden shifts to the employer to prove that the difference is objectively justified.

What This Means for Employees

For many employees — particularly women — this decision significantly simplifies the enforcement of equal pay claims. They no longer need to rely on average salaries or internal statistics; an individual example may be sufficient.

The ruling also strengthens employees’ position in salary negotiations. Referring to a specific colleague performing the same work makes arguments clearer and more compelling.

What This Means for Employers

Employers must now be even more transparent and consistent in documenting salary structures. Unclear, historical, or informal differences in pay may carry legal risks.

Well-defined criteria, transparent remuneration systems, and clear documentation of bonuses and allowances will be essential to avoid litigation and ensure compliance with evolving legal standards.

European Context: Moving Towards Greater Transparency

The decision is part of a broader European trend towards pay transparency and stricter equal pay enforcement. Germany is preparing to fully implement the EU Pay Transparency Directive, under which individual comparisons — now validated by the BAG — will play an increasingly important role.

What Both Sides Should Do Now

Employees should compare their tasks and salaries with those of colleagues in equivalent positions. When unexplained differences appear, seeking early legal advice is essential — especially to assess evidence properly and choose the right strategy.

Consulting a labour law attorney can help employees evaluate their situation objectively and take legally sound steps without risking procedural mistakes.

Employers should review and document their pay structures:

• clear criteria for salary levels and bonuses,
• reasons for individual variations,
• consistent application of internal remuneration rules.

Legal support is equally important for employers, ensuring that remuneration systems comply with current case law and reducing the likelihood of future disputes.

Conclusion

The BAG’s ruling significantly reinforces the principle of equal pay. A single comparator is now enough to question unjustified salary differences. This development promotes fairness and transparency — and requires both employees and employers to pay closer attention to their legal obligations.