Pay Transparency Directive: New Rules to Close the Gender Pay Gap
The new Pay Transparency Directive is on its way and aims to reduce the pay gap between men and women. The Dutch implementation of this EU law follows recent findings by Statistics Netherlands (CBS), which revealed a 12% average pay gap in 2023 or 7% when adjusted. This directive will affect the Dutch Equal Treatment of Men and Women Act and introduces stricter transparency and reporting obligations for employers.
What does the new law introduce?
A key element is the ban on requesting an applicant’s current payslip during job interviews. This aims to prevent future salary offers from being based on historical inequality. Employees will also gain the right to request information about the salary for their role and the average pay (by gender) for comparable roles. Employers are encouraged to include salary ranges directly in job postings.
Large employers will also face new reporting obligations. Companies with over 250 employees must report annually on the gender pay gap. Employers with 100 to 250 employees must report once every three years. These reports must detail salary differences and help identify unjustified disparities.
How is the pay gap assessed?
If a report reveals a gender pay gap of more than 5%, the employer must conduct an evaluation with employee representatives. Note: a pay gap does not always indicate unlawful discrimination. Objective criteria like experience, education, performance, or job level can justify some salary differences.
What does this mean for employers?
Employers are advised to review their salary structures now. Pay policies must be transparent, objective, and gender-neutral. Employees should understand how pay levels are determined and have access to the salary framework.
Accurate data tracking is essential. Employers must prepare for annual (or triennial) reporting and ensure their payroll and reporting systems are capable of delivering reliable figures. Proactive analysis allows businesses to address discrepancies before they become compliance issues.
Pay Transparency Directive: An Opportunity for Fair Pay
The directive must be implemented by EU countries by June 2026. It marks a major step toward a more transparent labour market where men and women receive equal pay for equal work.
For employers, the directive is both a legal requirement and a chance to demonstrate commitment to fair pay. A transparent and fair salary policy not only promotes equality, but also strengthens employee trust and enhances the organisation's reputation.
This blog was written by Mr. Stijn Blom
Employment law attorney at expatlawyer.nl B.V. Stijn has extensive experience in employment law and supports entrepreneurs on a daily basis with a wide range of employment law issues. From dismissal cases to drafting watertight agreements and regulations – with his practical and personal approach, he helps employers and employees move forward. Want to know more? Visit Stijn’s page.
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June 2025
