Draft bill pay transparency for men and woman: towards equal pay in the Netherlands
The pay gap between men and women is still a current issue in the Netherlands. Despite legislation requiring equal pay, women earn less on average than men for equal or equivalent work, according to CBS. To further address this inequality, the Dutch government published a (draft) bill implementing the Pay Transparency Directive on 26 March 2025 in response to the European directive on the subject.
The government opts for a "pure implementation" of the European Pay Transparency Directive (EU) 2023/970. This means that no stricter national rules will follow than is necessary according to the European legislator. Although the bill may still change, the new legislation must enter into force no later than 7 June 2026.
The proposal introduces significant changes for employers. We have summarised the main changes below.
Objective wage structures
Employers must adopt wage structures based on objective and gender-neutral criteria: skills, effort, responsibilities and working conditions. These criteria can be defined through collective bargaining agreements or through job evaluation systems.
Pre-employment transparency
Employers are required to inform job applicants in advance of the starting salary or its range, based on objective criteria. Relevant collective bargaining agreement provisions should also be shared. It is not permitted to ask applicants about their current or previous salary, to avoid repetition of salary differences. Applicants may, however, share their salary history on their own accord.
Pay transparency to employees
Employers must clarify which factors determine salaries and pay scales in the organisation. This obligation applies to organisations with at least 50 employees. Employees are given the right to request written information about their own salary as well as the average salary of comparable positions. If an employer does not comply with the transparency obligations, the burden of proof shifts in the case of a claim regarding unequal pay: the employer must then demonstrate that no prohibited discrimination has taken place.
Pay reporting obligations
Employers with at least 100 employees are required to periodically report on gender pay differences, including additional components such as bonuses. The reports are partially made public through a national website. The frequency of these reports varies depending on the employer:
| Number of employees | Period | Deadline for first reporting |
|---|---|---|
| 100 - 149 | Every 3 years | 7 June 2031 |
| 150 - 249 | Every 3 years | 7 June 2027 |
| ≥ 250 | Every year | 7 June 2027 |
Mandatory wage evaluation in case of differences
If the report shows that there are unjustified wage differences, the employer – in cooperation with the works council – must remedy this within a reasonable period. If differences of 5% or more still exist after six months, a mandatory wage evaluation follows. This evaluation includes an analysis, plan of action and an assessment of previous measures. The works council must approve this plan.
Role of the works council
The works council becomes an indispensable link in ensuring equal pay and achieving pay transparency. The works council will not only have a monitoring role, but also a right of consent in the design of the remuneration policy, the resolution of unjustified differences in remuneration and the monitoring of compliance with the new obligations.
The works council must be given insight into the assessment method used and must be consulted on the accuracy of pay reporting before it is submitted to the monitoring system. In cases where a collective bargaining agreement applies, trade unions may take over the tasks of the works council, provided that the collective bargaining agreement fully covers the aforementioned obligations.
Concrete tips for employers
Although the legislative proposal may still change, it is advisable to already start making preparations:
- Analyse the current remuneration policy: map out pay structures and job evaluation systems. Assess whether these are objective and gender-neutral.
- Involve the works council in a timely manner: discuss the current pay structures and the manner in which objective criteria are established.
- Prepare for information requests: set up processes that allow employees to easily request pay information.
- Communicate clearly to employees: inform them of their rights and how to report suspicions of unjustified pay differences.
- Document job classification systems: ensure clear job descriptions and determine which job positions are equivalent.
- Conduct regular evaluations: carry out internal audits on the remuneration policy and draw up improvement plans in case of inequalities.
By anticipating in time, employers can mitigate risks, adjust internal processes and comply with future legislation. We are happy to assist if you have any questions about drafting or modifying your policies.
