The European Union's pay transparency directive (Directive (EU) 2023/970), adopted in 2023, requires member states to implement the directive into national legislation by June 2026. The Netherlands has announced a delay in the implementation of the EU pay transparency directive, making the Netherlands the first EU member state to officially postpone the transposition of the directive into national law.
Quick Hits
- Many European Union member states have presented draft proposals to transpose the EU's pay transparency directive into national law, yet no member state, to date, has fully completed the transposition.
- The first mandatory pay gap report in the Netherlands will be based on data from the year 2027, rather than 2026 as originally anticipated.
- Regardless of the delay, employers are not exempt from their obligation to prepare for the directive accordingly.
On September 17, 2025, the Dutch Ministry of Social Affairs and Employment announced that the implementation of the EU pay transparency directive will be postponed until January 2027, rather than 7 June 2026 as required under the directive. This delay was communicated in a letter, in which the government stated that additional time is required to develop the necessary national legislation.
The purpose of the delay is to allow for more effective implementation of the directive's requirements by employers, while minimising administrative burdens. The government is likely to publish the final legislative proposal by the end of 2025, with parliamentary discussions scheduled to take place in 2026.
The delayed implementation may have adverse effects on the Netherlands. Under EU law, the European Commission may take legal action, in the form of an infringement procedure, against an EU member state that fails to implement EU law. The Commission can refer the issue to the Court of Justice of the European Union, which may impose financial sanctions. To date, the EU has not made any announcements regarding potential repercussions for the Netherlands.
For employers, this will likely mean there will be a transitional period where the directive is legally binding at the EU level but not yet fully incorporated into Dutch law. During this time, Dutch courts are expected to interpret existing national laws in line with the directive's objectives. Employers may wish to continue preparing for compliance in the Netherlands, even though the formal requirements are postponed. Early action will help avoid last-minute compliance challenges and demonstrate a commitment to pay equity and transparency.
Key obligations under the directive include providing pay transparency to job applicants and employees, establishing objective and gender-neutral pay structures, and reporting on gender pay gaps (subject to headcount). The new timeline in the Netherlands means that companies with 150 or more employees will need to publish their first gender pay gap reports, expected to be due in 2028, based on 2027 data, rather than 2026. For companies with one hundred to 149 employees, the reporting deadline currently remains unchanged, with the first report due in 2031.
Employers are encouraged to stay informed about the implementation process in their respective jurisdictions. Information and updates on the progress of the directive's implementation across the EU can be found using Ogletree Deakins' Implementation Tracker.
For more on the EU's pay transparency directive, see our previous articles, "EU Pay Transparency Directive: Updates on Implementation Across Member States," "Preparing for the EU's Pay Transparency Directive," and "EU Pay Transparency Directive: 'Equal Pay for Equal Work or Work of Equal Value."
Further information can also be found by listening to our podcast, "Understanding the EU Pay Transparency Directive: What Employers Need to Know."
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
