Background: why the directive exists

In 2023, the EU introduced the Pay Transparency Directive to address persistent inequalities in pay between women and men. The directive’s core aim is to promote equal pay for equal work (or work of equal value) and reduce the gender pay gap.

Despite improvements in labour market participation, significant pay and pension gaps remain. In 2024, the EU gender pay gap was approximately 13%. The directive seeks to increase transparency and drive correction through binding obligations and minimum standards, including transparency requirements, formal reporting, employee information rights, and participation rights.

Implementation in the Netherlands

The Netherlands must transpose the directive into national law by June 2026, but had planned to delay implementation to 1 January 2027. The European Commission has now explicitly stated it will not accept such a delay.

As part of the implementation process, the Dutch government published a draft bill in March 2025, followed by a public consultation that concluded in May 2025.

The Netherlands has opted for a “1:1 implementation” approach, meaning the proposal closely follows the directive’s text and focuses on what is strictly necessary for compliance, aiming to limit additional administrative burden for employers.

Implementation will be achieved through amendments to existing Dutch laws, in particular:

• the Equal Treatment of Men and Women Act (as the core framework for workplace equality),

• the Works Councils Act, and

• the Act on the Allocation of Workers by Intermediaries, to clarify the role of employee participation bodies and the position of agency workers under the new transparency rules.

No postponement: June 2026 remains the deadline

On 18 December, the European Commission confirmed it will not accept a delay in the Netherlands’ implementation of the EU Pay Transparency Directive. All Member States must transpose the directive into national law by June 2026.

The Commission underlined that pay transparency is essential to achieving equal pay for men and women and warned that infringement proceedings may follow if implementation is not completed on time.

Why this matters in the Netherlands

Earlier, on 15 September 2025, a report from the Informal Employment, Social Policy, Health and Consumer Affairs Council indicated that more time would be needed for the Dutch implementing act (Wet implementatie Richtlijn loontransparantie mannen en vrouwen). At that stage, the expectation was that Dutch legislation would only enter into force on 1 January 2027.

That would have meant that the reporting obligation for employers with 150+ employees would apply for the first time to calendar year 2027, rather than 2026.

The Netherlands has not yet responded publicly to the Commission’s refusal. For organisations, this may mean that reporting obligations for employers with 150+ employees could already apply to calendar year 2026, with reporting in 2027.

What this could mean for your organisation

Pay transparency is a growing compliance priority across Europe. With the directive, all employers, regardless of size, sector, or structure, face new obligations aimed at ensuring equal pay for equal work (or work of equal value) and correcting unjustified pay differences.

This article summarises the directive’s main requirements, the direction of the Dutch implementation, and what employers should be preparing for now.

Transparency obligations for all employers

The directive introduces several transparency requirements that apply to all employers, regardless of headcount. Employers should review their processes to be compliant by June 2026.

Before hiring

Employers must ensure that:

• Job vacancies and job titles are gender-neutral, and recruitment is conducted in a non-discriminatory way.

• Candidates are proactively informed about the starting salary or the salary range during the recruitment process.

• Candidates are no longer asked about their previous salary.

During employment

Employees gain enhanced access to information about pay structures and progression.

For employers with 50 or more employees, workers have a right to information about:

• how the organisation’s pay policy is structured, and

• how salaries develop over time.

Employees can also request written information on pay. They are entitled to receive:

• their own individual pay, and

• the average pay levels by gender for categories of employees doing the same work or work of equal value.

Employer duties linked to the right to information

Employers must:

• Inform employees once per year about the right to information and how to exercise it.

• Provide the requested information within two months.

• Report total pay (base pay plus fixed or variable components) as an average annual salary per category.

  • A breakdown by component is not required.

  • An hourly rate may be added voluntarily.

• Ensure the information remains up to date.

Providing this information is not considered a breach of data protection rules under the GDPR, even where averages in small groups could indirectly reveal the pay of an identifiable colleague.

Reporting obligations for employers with more than 100 employees

Employers with 100+ employees must report on the organisation’s gender pay gap, including average and median gaps for base pay and any additional or variable pay. Reports must be shared with:

• management,

• the works council,

• the general public via a publicly accessible digital environment, and

• the Labour Inspectorate.

Phased introduction by employer size

The reporting frequency and first deadline depend on workforce size:

• 100–149 employees: every three years; first report due by 7 June 2031

• 150–249 employees: every three years; first report in 2027 (covering calendar year 2026)

• 250+ employees: annually; first report in 2027 (covering calendar year 2026)

What the report must include

The report must include:

• Gender pay gap in base pay

• Gender pay gap in additional/variable pay components

• Median gender pay gap in base pay

• Median gender pay gap in additional/variable pay components

• Share of women and men receiving additional/variable pay

• Share of women and men in each pay quartile

• Pay gaps between employees per employee category, split into base pay and additional/variable components

Corrective measures and mandatory pay evaluations

Where a pay gap exists and cannot be objectively justified using gender-neutral criteria, the employer must take corrective action. The works council must approve these measures.

If an unjustified pay gap of 5% or more exists within a job category and is not resolved within six months, a formal pay evaluation becomes mandatory. This requires an analysis carried out in cooperation with the works council, resulting in an action plan describing:

• the causes of the pay gap, and

• the measures to close it.

Non-compliance may lead to administrative sanctions. For employers with 250+ employees, fines of more than €10,000 may be imposed, with the possibility of higher penalties in case of repeated offences.