Dutch Pay Transparency Bill Advances to Council of State
The Netherlands has submitted an amended draft bill to the Council of State for review, which implements the EU Pay Transparency Directive. The bill, revised after public consultation, aims to promote gender equality in employment by requiring greater transparency from employers. The timeline for full implementation remains to be determined.
- EU member states have until June 7, 2026, to transpose the Pay Transparency Directive into their national laws. The first gender pay gap reports for companies with 150 or more employees are due by June 7, 2027, covering the 2026 calendar year. - Key provisions of the directive require employers to provide information about a position's pay or pay range to applicants before an interview and prohibit them from asking candidates about their salary history. Job titles and vacancy notices must also be gender-neutral. - In the Netherlands, the unadjusted gender pay gap based on average gross hourly wages was approximately 10.5% recently, down from 19% in 2010. When adjusted for factors like role, education, and experience, a gap of around 6% remains. - The Council of State (Raad van State) is the highest advisory body to the Dutch government and must be consulted on proposed legislation before it is submitted to parliament. Its review is a standard procedure to assess the legal and constitutional soundness of a bill, though its advice is not binding. - Under the directive, if an employer's gender pay gap report reveals a disparity of at least 5% that cannot be justified by objective, gender-neutral factors, they must conduct a joint pay assessment in cooperation with employee representatives. - The legislation will shift the burden of proof in pay-related disputes to the employer. This means the company, not the employee, will have to demonstrate that no pay discrimination has occurred. - The pay gap in the Netherlands is narrower in the public sector than in the private sector. In 2024, women in the public sector earned an average of 4.5% less than men, compared to a 14.5% gap in the private sector.
