Netherlands Leads the Way in Pay Transparency Compliance

The Netherlands has taken decisive steps to transpose the EU Pay Transparency Directive into national law by the June 7, 2026 deadline. In early 2025, the government released a draft bill to amend existing equality legislation, initiating a public consultation that concluded in May.

Under the proposed law, all employers—regardless of size—will be required to implement gender-neutral pay structures based on objective criteria such as skills, responsibilities, and working conditions. Job postings must include either a starting salary or a clear salary range, and employers will be prohibited from asking applicants about their salary history during recruitment.

Employees will gain the right to request individual pay information, including the average salary for their role, broken down by gender. Employers must respond to these requests within two months. Additionally, companies with 50 or more employees must publish transparent pay progression criteria to ensure equal access to career advancement.

Larger employers will face mandatory gender pay gap reporting. Organizations with 250 or more employees must report annually starting June 7, 2027, while those with 150 to 249 employees will report every three years. Companies with 100 to 149 employees will be included by 2031.

If a gender pay gap exceeding 5% is identified within a job category and cannot be justified, employers must take corrective action within six months or initiate a joint pay assessment with employee representatives.

The Dutch approach aligns closely with the EU directive’s core requirements, avoiding unnecessary complexity while encouraging fair and transparent workplace practices. Legislation is expected to pass by the end of 2025, providing sufficient time for employers to prepare.

Conclusion: The Netherlands is at the forefront of pay equity reform. Employers should begin reviewing their pay structures, recruitment processes, and data systems to ensure full compliance and promote a culture of transparency and fairness.