What’s Going On?
The Dutch government has proposed a new law that will make pay transparency mandatory for all companies, including micro and small ones, by June 2026.
This law is part of a European rule (Directive 2023/970) to make sure men and women are paid equally for equal work.
If you're running a small team, 2, 5, 15 people, this will affect you.
What Does It Mean for You?
Let’s say it clearly:
You must be able to explain and justify why one person earns more than another, based on facts, not opinions.
That includes:
- Base salary
- Bonuses and commissions
- Benefits (like company phones, travel allowance, etc.)
The law doesn’t care if your company is small. What matters is that your pay logic is fair, and documented.
The Key Rules You Need to Follow
1. Be Transparent from the Start
When hiring:
- You must include a pay range or starting salary in job offers.
- You must use objective, gender-neutral reasons to set that number.
- You cannot ask candidates what they earned in their previous job.
Why? So no one is penalized because of what they were paid before.
2. Define Why People Earn What They Earn
You’ll need to group your roles and explain how pay is decided.
That means writing down things like:
- What skills are needed?
- How much responsibility is involved?
- Is it physical, technical, creative?
- What are the working conditions?
Behavioral traits (like leadership, precision, communication) also count, but can’t be undervalued just because they’re “soft skills.”
3. Your Team Can Ask for Pay Info
Every employee will have the right to:
- Know the criteria used to determine their pay
- Ask how their pay compares to others in the same role, split by gender
You must:
- Provide this info in writing, within 2 months
- Remind employees once a year that they have this right
You also can’t ban people from talking about their salaries. That’s part of the transparency rule.
4. If Someone Notices a Pay Gap, You’ll Need to Explain It
If someone says:
“I think I’m being paid less than someone else for the same work.”
You’ll need to:
- Provide the numbers
- Show the logic behind it
- Fix it if it’s unfair
If you can’t explain the difference using objective criteria, and it’s not justified, you’ll be required to adjust the pay.
What Should You Do Now?
Even though the law isn’t final yet, waiting until 2026 is a bad idea. Small companies need time to prepare without stress.
Here’s your action list:
1. Stop asking salary history
From now on, don’t ask candidates what they earned before. Focus on what the role is worth.
2. Add salary ranges to job ads
Start being clear and fair from the beginning.
3. Create a simple pay structure
You don’t need a corporate grid. Just list your roles, and for each one:
- Define skills, effort, and responsibilities
- Decide what’s worth more and why
4. Document your pay logic
Keep it written and accessible. If someone asks, you’ll be ready.
5. Inform your team
Tell your people they have the right to ask about pay. Make that part of your yearly routine, like sending out the holiday schedule.
XTROVERSO’s Final Take
At XTROVERSO, we don’t just “do compliance.” We protect your time, your reputation, and your people.
This new law is not about punishment. It’s about fairness, with structure. The sooner you get clear on your pay decisions, the less risk you’ll carry, and the more trust you’ll build.
So: don’t overthink it. Just start.
