And what are the implications for Dutch employers and employees?
European framework and objectives
The European Pay Transparency Directive must be transposed into Dutch law by 7 June 2026 at the latest. The directive aims to reduce gender-based pay gaps and ensure equal pay for equal work or work of equal value. It seeks to strengthen employee rights, particularly for women, through greater transparency and awareness. Employers will be required to provide insight into pay structures and the reasons for any differences.
Status of implementation in the Netherlands
As of August 2025, the implementation process is still in its preparatory phase. Preliminary analyses and consultations are being held with social partners, such as trade unions and employers’ organisations. Existing Dutch legislation – including the Equal Treatment (Men and Women) Act – is being reviewed. Lawmakers are also examining the practical and legal consequences for employers, for example in terms of administrative burdens and possible scaling-up obligations. No final bill has yet been submitted to Parliament, but it is expected to be introduced during 2025 or, at the latest, early 2026, given the June 2026 deadline.
Legal obligations under the Directive
The directive introduces several obligations that will directly affect employers. Employees must be able, upon request, to obtain information about the average pay of employees of the opposite sex in comparable roles. The term “comparable roles” will need to be defined precisely in legal terms, for instance, by reference to job categories or levels.
In addition, employers with more than a yet-to-be-determined number of staff will be required to produce periodic reports on their gender pay gap. A five per cent threshold is likely to be applied: where a gap of more than five per cent exists and cannot be objectively justified, employers will be required to take corrective measures.
Employees will also have broader opportunities to take legal action in cases of unjustified pay disparities, for example through individual claims or collective proceedings. The role of the Dutch Labour Inspectorate in monitoring and enforcement is expected to be strengthened.
Consequences of significant pay gaps
If significant and legally unjustifiable pay differences are found, employers may face far-reaching consequences. These could include obligations to pay wage arrears to current or former employees, with statutory interest, as well as claims for damages on grounds of discrimination.
There is also the risk of reputational damage, especially if the discrepancies are made public. Employers may need to take substantial corrective action, such as revising their pay policy or adjusting job evaluations.
Preparation is key
Employers would be wise to prepare in good time for the new rules. This includes structuring job classifications and pay policies in an objectively defensible way, and thoroughly analysing existing pay relationships against market data. Any pay differences should be capable of objective justification – for example, by experience, education, or performance. Engaging legal expertise can help assess internal pay structures against the forthcoming legal framework and mitigate potential risks.
Conclusion
The Pay Transparency Directive marks an important step towards greater gender equality in pay. Careful legal integration into Dutch law will be crucial. The employment law specialists at SPEE advocaten & mediation are ready to assist in mapping out pay disparities and developing a compliant pay policy, ensuring you meet your new legal obligations and avoid unwelcome surprises.