The Act implementing the Pay Transparency Directive for men and women is on its way. It will enter into force no later than 7 June 2026. All Dutch employers are expected to prepare for significant changes. Transparency will become mandatory, as will addressing pay disparities between men and women.
1. Every employer must implement a pay structure
This pay structure must be based on objective and gender-neutral criteria, such as skills, effort, responsibilities, and working conditions. If you don’t have a pay structure, you must develop one or align with the applicable collective labour agreement.
What does this mean? All employees will be able to see the basis on which their salary is determined.
2. Transparency is mandatory in recruitment
Every job posting must include the salary or salary range. Asking applicants about their current or previous salary will be prohibited.
What does this mean? As an employer, you can no longer offer below-market salaries. Applicants have the right to know what to expect. Competitors will also gain more insight into your pay structure through your job postings.
3. Employees gain extensive information rights
Employees may request information about their own salary and the average salaries of colleagues in comparable roles. Employers are required to actively inform employees of these rights each year.
Organisations with 100+ employees must report on gender pay gaps. This information will be partially public. If unexplained differences exceed 5%, a mandatory pay evaluation must follow.
What does this mean? Employees will gain insight into what colleagues in similar roles earn and how their own salary compares.
4. Obligation to correct unjustified differences
If pay differences cannot be objectively justified, the employer is required to eliminate them within a reasonable period.
What does this mean? Unjustified pay gaps will disappear. This may lead to additional costs for employers.
5. The works council gains strong powers
The works council will have the right of consent on matters such as:
What does this mean? Employers can no longer act unilaterally, as the works council will have significant influence.
The Ministry of Social Affairs and Employment published the internet consultation on 6 March 2025, which closed on 7 May 2025. Since then, we have been awaiting the final legislative proposal.
The fall of the Dutch government on 3 June 2025 has created uncertainty. However, the European Union requires member states to implement the directive by 7 June 2026 at the latest. Equal treatment is a fundamental EU right. It is therefore not unlikely that employers may be required to apply the directive directly, even if it has not yet been enacted into national law.
Prepare for this pay transparency legislation, regardless of political developments. Not all obligations will take effect at once, but preparation is essential.
In the coming weeks, we will explore the changes in more detail. We will explain which steps employers, HR, and works councils can already take to be well prepared.
Next week, we’ll start with the pay structure: what exactly must it comply with?
For questions about the pay transparency legislation, please contact Renée Huijsmans-Zwijnenburg, Partner & Attorney at law in Employment & Employee Participation, or Jan-Pieter Vos, Attorney at law in Employment & Employee Participation.
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