Pay transparency, do you know your colleague’s salary

Date

Imagine this: you are sitting at the lunch table with a colleague when you suddenly wonder whether the two of you are actually being paid the same for the same work.

As of 2027, the European Pay Transparency Directive will bring change to this question. The Netherlands must implement the directive no later than January 1, 2027, turning your colleague’s salary from a mystery into a matter of legal entitlement. The aim of this directive is to reduce the gender pay gap. For many Dutch employees, this may take some getting used to—we are not accustomed to discussing our income openly.

 

What will change?
  • Right of access
    Employees will have the right to request information about the average pay for equivalent roles, broken down by gender.
  • Transparency in recruitment
    Job advertisements must clearly state the starting salary or salary range. Vague terms such as “competitive salary” will no longer suffice—employers must provide concrete figures. At the same time, transparency has its limits: employers may no longer ask candidates about their previous salary.
  • Reporting obligation for larger employers
    Employers with more than 100 employees will be required to report regularly on any gender pay gap.
  • Objective pay structures
    Remuneration must be based on neutral criteria such as experience, responsibility, and skills—not on gender.
  • Burden of proof on the employer
    If an employee raises a complaint about unequal pay, it is the employer who must prove that no pay discrimination has occurred.

 

Why does this matter?

In the Netherlands, the gender pay gap remains around 10%. The directive aims to close this gap, building greater trust and fairness in the workplace. For employers, this means more administrative obligations, but also an opportunity to position themselves as transparent and reliable. For employees, it offers clarity, greater control over their salary, and, above all, confidence in equal treatment.

 

Are you an employer wondering what you can do now?
  • Map out your pay structures and ensure they are objective and transparent.
  • Adjust job postings to include salary ranges.
  • Prepare your HR systems for future reporting requirements.
  • Start internal conversations about what pay transparency will mean for your organisation.

Employers would be wise to take proactive steps now. Should you wish to receive advice on this matter, we are at your disposal. Please feel free to call us or contact us through the contactdetails at the bottom of this website.