Dutch Gov Releases Draft Bill to Implement EU Pay Transparency Directive by 2026 Deadline

• The Dutch government introduced a draft bill to apply the EU Pay Transparency Directive
• The target is to be in compliance with the June 7, 2026, EU-wide deadline
• This move aligns the Netherlands with countries like Germany, Ireland, and Poland

The Dutch government has tabled a draft bill to enact the EU Pay Transparency Directive with the intention of complying with the EU-wide deadline of June 7, 2026. The step brings the Netherlands in line with other EU nations such as Germany, Ireland, and Poland that have already started implementing similar regulations.

ICLG added that by this move, "the Dutch government has left the Brussels naughty step," an allusion to its previous failure to act. Officially named Wetsvoorstel implementatie richtlijn loontransparantie, the bill contains numerous reporting and transparency obligations aimed at addressing the gender pay gap. The Dutch government has opted to adopt only the Directive's key components, according to Baker McKenzie.

The draft law presents some essential provisions intended to improve pay transparency and decrease the gender pay gap. The employers shall have to disclose the minimum wage or wage level, and where appropriate collective labour agreement terms, in the advertisement for a vacant position or at the pre-interview stage. Moreover, they will not be able to ask for candidates' previous remuneration. Recruitment procedures should be gender-free and non-discriminatory, and fairness should be maintained at all stages of the recruitment process.

The employees will be entitled to receive information regarding the company's pay policy and how it is formulated. In addition, employees can ask for written information on their own salary as well as the average pay scales for comparable jobs, by gender. The employers are required to give this information within two months of being asked.

The bill also increases the function of Works Councils. If there is a gender pay gap greater than 5 percent. Councils will acquire the authority to approve gender-neutral criteria-related decisions in the company's compensation system. For bigger employers, the bill establishes certain reporting requirements. Employers with 250 or more employees will have to report annually, whereas employers having 100 to 249 employees will report every three years. The first reporting date is June 7, 2027.

Failure to comply can lead to fines of up to EUR 10,300 per infringement, according to Baker McKenzie. This legislative push should create a more balanced workforce in the Netherlands, most especially for women and younger workers. With time limits approaching, Dutch employers are advised to peruse their payment structures and prepare for the new developments.

The public hearing of the proposed bill is ongoing until May 7, 2025, and the bill is to be filed in the House of Representatives in the third quarter of 2025.