Implementing The EU Pay Transparency Directive In The Netherlands: What Employers Need To Know

The Netherlands is preparing to implement the European Union Pay Transparency Directive to strengthen equal pay across genders through greater transparency and stricter enforcement. The national implementation act is expected to enter into force on 01 January 2027.

For employers, the new rules entail that pay differences will need to be based on objective, gender-neutral criteria, and that employees will gain significantly more insight into how their pay is determined.

Key changes for employers

The proposed rules include the following requirements:

• Employers must inform job applicants of the starting salary or salary range before employment, and employers may no longer ask about salary history;
• Pay and job evaluation structures must be based on objective, gender-neutral criteria;
• Employees may request information about their own pay level as well as average pay levels (broken down by gender) for employees performing the same work or work of equal value;
• Employers with at least 50 employees must make the criteria for pay progression easily accessible to employees;
• Employers with at least 100 employees will be subject to gender pay-gap reporting: every three years for employers with 100–249 employees, and annually for employers with at least 250 employees. If the report shows a pay gap of at least 5% in a category of workers that cannot be objectively justified, and the gap is not remedied within six months, the employer must conduct a pay assessment;
• If transparency obligations are not met, the burden of proof will shift to the employer in equal-pay proceedings.

Not every pay gap is unlawful. However, employers must be able to explain differences using consistent and transparent criteria. The Dutch “Wehkamp case”, in which a female employee earned EUR 1,000 less per month than a male colleague performing work of equal value, illustrates the risks of relying on criteria that cannot be substantiated.

What should employers do now?

Employers with staff in the Netherlands should already be reviewing their pay structures, job classifications and salary progression criteria. They should identify unexplained differences, document objective justifications, and ensure that recruitment processes and job descriptions are ready for the upcoming transparency requirements.

For international employers, consistency across entities is particularly important: group-wide compensation policies may need to be assessed against specific Dutch requirements.

Our employment law colleagues can advise employers on preparing for the pay transparency rules.