How the new wage transparency legislation aims to reduce the gap between men and women
The Implementation Act for the Wage Transparency Directive for Men and Women,which was launched last Thursday, aims to further promote equal pay between men and women. The legislation is a response to findings by Statistics Netherlands (CBS), which in 2023 reported an average wage difference of 12% between men and women (corrected 7%). Through greater transparency and the introduction of reporting obligations, the aim is to reduce this gap. The law has a direct impact on the Equal Treatment of Men and Women Act and introduces several changes for employers and employees.
What does the new legislation entail?
One element of the legislation is the prohibition for employers to ask for the most recent payslip during job applications. This is intended to prevent a candidate from being disadvantaged based on previously earned salary, which often perpetuates the pay gap between men and women. Additionally, employees will have the right to request information about the remuneration for their own position, as well as the gender-based average salaries for comparable roles. This information supports transparent negotiations and should ideally be included in job advertisements.
Another important change is the reporting obligation for large employers. Companies with more than 250 employees must report annually on the pay gap between men and women, while employers with between 100 and 250 employees must do so only once every three years. These reports will not only make salary differences visible but also help identify any unjustified wage disparities. The aim is to encourage employers to address and prevent unjustified differences in the future.
How is the pay gap evaluated?
When reports show that the pay gap is greater than 5%, the employer must conduct an evaluation together with employee representatives to understand the causes of these differences. It is important to understand that a pay gap does not automatically imply unlawful discrimination. Objective factors such as work experience, education, job level, and work performance can provide justified reasons for salary differences.
What does this mean for employers?
For employers, this legislation means it is important to start reviewing their compensation policies now. It is critical to ensure that pay structures are transparent, objective and gender-neutral. Employers must make their pay policies, including criteria for salary levels and salary trends, accessible to their employees and ensure clear reporting on the pay gap.
In addition, employers should prepare to report this data annually (or every three years, depending on the size of the company). This means monitoring their payroll and reporting processes and ensuring that the data is accurate and well-supported. This allows them to better understand the wage gap and take any necessary steps to reduce it.
The Wage Transparency Directive and the future of equal pay
The Wage Transparency Directive will take effect in June 2026 and must be transposed into national law by all EU member states. This marks an important step toward a fair and transparent labor market, where men and women have equal opportunities in their remuneration. For employers, this means not only preparing for the new legislation but also actively working toward a fairer pay system that benefits both employees and the organization.
With the upcoming implementation of this legislation, employers will have greater responsibility to ensure gender equality in pay. It is an opportunity to provide real transparency and achieve equal pay between men and women.
This blog was written by Mr. Stijn Blom, employment lawyer at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and assists entrepreneurs daily with a wide range of employment-related matters. From dismissal cases to drafting watertight contracts and policies – with his practical and personal approach, he helps employers and employees move forward. Want to know more?Visit Stijn's page.
Arbeidsadvocaat.nl is happy to assist you if you have any questions about the implementation of this directive. Feel free to contact us .
April 2025
