Colleagues could know your salary under Labour reforms
Ministers are considering a raft of radical changes, including ordering firms to share salary levels, pay structures and criteria for progression with their staff.
The move could also mean that employers have to inform interview candidates in advance how much a job will pay, and avoid asking them about their previous salaries.
The Fawcett Society welcomed the move, but said more needed to be done, while headhunters Robert Walters UK&I said it could cause internal problems for employers.
The review is being carried out by the Office for Equality and Opportunity, led by Bridget Phillipson, the Women and Equalities Minister, under plans to tackle pay discrimination and workplace harassment.
The reforms include giving workers information on their pay level, and how it compares with colleagues in the same role or performing work of equal value.
Firms would also be forced to provide them with information on pay, company salary structures and criteria outlining how they can progress.
Job adverts could also have to outline a specific salary or range, and interview candidates would be informed in advance how much they will earn, with restrictions on asking them about their previous levels of pay.
Any changes could be enforced by a new Equal Pay Regulatory and Enforcement Unit, established with the involvement of trade unions.
The Government is already planning major changes to workers' rights, spearheaded by Angela Rayner, the Deputy Prime Minister.
The upcoming Employment Rights Bill will make it easier for staff to request flexible working, and hand them the right to take employers to tribunal for unfair dismissal from day one, which experts warned would flood courts with spurious claims.
It comes after a survey revealed that companies are planning more lay-offs after the Government raised National Insurance contributions from 13.8pc to 15pc.
Accountants S&W found that a third of businesses were planning to cut staff, and 20pc already had.
Penny East, chief executive of the Fawcett Society, welcomed the potential new measures, and said the Government had to do more to close the gender pay gap.
She said: 'Fawcett and our members have long called for employers to stop asking questions about salary history, and for employees to have a 'right to know' what those doing equivalent work in the same company are being paid. Evidence shows us these steps will make a significant difference to the gender pay gap.
'However, there is more to be done. We look forward to a time when all economic and societal unfairness is tackled.'
Liz Emerson, of the Intergenerational Foundation think tank, said: 'Too many young people are underpaid for doing the same job alongside older colleagues. You just have to look at national minimum wage rates for the under-22s to see how differently generations are treated in the workplace.
'Pay transparency can shine a light on intergenerational unfairness in the workplace.'
However, Chris Eldridge, chief executive of headhunters Robert Walters UK&I, said disclosing salaries on job adverts could cause problems for employers.
He said: 'Compensation for a role can vary considerably, influenced by factors such as talent competition, counteroffers and current rates of inflation. However, if current employees perceive discrepancies between advertised salaries for similar roles and their own pay, it could lead to significant internal dissatisfaction.
'This potential for internal conflict is a key reason why many employers currently avoid directly listing salaries on job listings.'
A government spokesman said: 'This Government is pro-business and many businesses already go well beyond the requirements of the law in order to support pay equality.
'We are seeking to build the evidence base before deciding whether any changes in relation to pay transparency are necessary.
'By collecting evidence on how best to tackle pay disparities, we will be able to make sure that we maximise the benefits to both workers and employers.'
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