The Netherlands: The EU Pay Transparency Directive

Implementation and actions

What is the current implementation status and timing?

The Directive has not yet been implemented in the Netherlands. A first draft of the proposal has been published and the public were able to respond until 7 May 2025.

The Ministry of Social Affairs and Employment is currently considering the responses to the legislative proposal before submitting it to the House of Representatives (the next step in the legislative process). Implementation will take effect immediately after the legislative process has been completed. It is expected that the legislative proposal will come into force per 1 January 2027.

What preparatory steps are you advising clients to take, including ensuring they have access to the required data?

Conduct audits to identify any gender pay gaps, making sure that all information is available digitally.

Other pre-emptive measures that employers should consider putting in place include:

• Addressing gender pay gaps through strategic measures such as salary freezes and differentiated annual salary increases (potentially implemented over multiple years).
• Implementing transparent pay policies and ensuring employees are informed about pay scales and career progression opportunities.
• Establishing reporting mechanisms to accurately track and report gender pay gaps.

It will be important to work with the works council (or employee representative body) to implement and evaluate transparent pay structures.

Please click here for more on actions employers can take in preparing for the Directive.

Implementing the Directive's requirements

Which workers are in scope?

The definition of "worker" is linked to the concept of "employee" in the Netherlands (working on the basis of an employment agreement).

It is anticipated that national laws will align with the Directive definition of a worker requiring the existence of an employment contract or employment relationship defined by law, collective agreements, or practice in force in that Member State. It will likely include part-time, fixed-term, temporary agency workers, managers; and where criteria are met, atypical workers (e.g. zero hours, trainees, apprentices, platform workers).

Who will be workers' representatives?

We are awaiting further details of implementing legislation.

Are there any proposals around the methodology and tools for assessing "equal value"?

The requirements imposed by the Directive will necessitate changes to job grading systems. The works council has a right of consent regarding job-grading systems.

How is pay defined?

No information is currently available on what pay elements may be included and excluded from the definition of pay in the implementing legislation.

How are the requirements for transparency for job applicants being implemented?

We are awaiting further details of measures to be introduced to align with the Directive.

Current position

Currently, all recruitment processes must be conducted in a non-discriminatory manner. There is a general prohibition on unequal treatment when offering a job and handling the filling of a vacancy, employment services and entering and terminating an employment relationship; employers may not therefore discriminate on the basis of certain grounds for discrimination. Acting in violation of this legislation is prohibited and may result in unlawful conduct (damages claim).

How are the requirements for transparency for workers being implemented?

We are awaiting further details of measures to be introduced to align with the Directive.

How are the gender pay reporting requirements being implemented?

It is currently unknown if legislation bringing the Directive requirements into force will lower the threshold numbers for reporting or bring forward the deadlines for initial reporting and/or provide for greater frequency of reporting.

When counting workers for the purposes of the Directive's pay reporting thresholds, will only workers of a particular "legal entity" be in scope?

There is no definitive answer at present.

Do we have details on how the requirements for a joint pay assessment will be implemented?

We are awaiting further details.

Do we have details as to how the Directive obligations will be enforced and potential sanctions?

We are awaiting further details of measures to be introduced to align with the Directive.

Are there any tools or guidance available to support employers?

The Ministry of Social Affairs and Employment (with the social partners) will develop methods and tools to establish pay structures and support reporting. It is expected that these tools will be released ahead of legislation implementing the Directive coming into force.

Return to main EU Pay Transparency Directive page