The EU Pay Transparency Directive (Directive (EU) 2023/970), adopted in May 2023, aims to tackle gender-based pay inequality through stronger transparency and accountability. The Dutch government is implementing this Directive via a draft bill that closely follows the EU provisions. Although the original deadline was 7 June 2026, the Dutch Minister of Social Affairs and Employment has announced a delay, with the law now expected to take effect on 1 January 2027.

The draft legislation introduces new employer obligations in five key areas. First, wage structures must be based on objective, gender-neutral criteria such as skills, responsibilities, and working conditions. These must be developed in consultation with employee representatives and reflect equal pay for work of equal value.

Transparency rules require employers to inform job applicants of the starting salary or range before interviews and prohibit questions about previous salaries. During employment, employees must be informed of the criteria used to determine pay and progression. They also gain the right to request written information about their own salary and the average salary by gender for comparable roles. Employers must respond within two months and inform employees annually of this right.

Reporting obligations apply to employers with 100 or more employees. Reports must include average pay differences between men and women, covering both base and variable pay. These must be confirmed by management, shared internally, and published nationally. Employers with 250+ employees must report annually starting in 2028 (covering 2027 data), those with 150–249 employees every three years from 2028, and those with 100–149 employees starting in 2031.

If unjustified pay gaps of 5% or more persist for six months, a mandatory wage evaluation must be conducted with the works council. The Directive also shifts the burden of proof in discrimination claims to the employer if transparency obligations are not met, requiring them to justify any pay differences.

The works council plays a vital role in compliance, with consent rights on pay policies and corrective actions. In unionized workplaces, trade unions may take on this role under collective agreements.

Non-compliance may result in administrative fines up to €10,300 per violation and public disclosure by the Dutch Labor Inspectorate. EU-level sanctions may include fines of 2–4% of annual revenue and exclusion from public procurement.

To prepare, employers should start mapping their workforce, auditing pay structures for gender neutrality and setting up internal processes for handling information requests. HR and legal teams should be trained, and early engagement with works councils is advised. Monitoring national developments and preparing for increased scrutiny will be key.

The final legislative proposal is expected by the end of 2025, with parliamentary debate in 2026. The first reporting for employers with 150+ employees will cover calendar year 2027, to be submitted in 2028. Reporting for employers with 100–149 employees remains scheduled for 2031.