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The heaviest correction mechanism in the Pay Transparency Directive

What is a joint pay assessment (JPA) and when must you carry it out?

The joint pay assessment (JPA) is a mandatory, structured audit triggered when a pay gap of 5% or more per job category is not objectively justified or corrected within six months. You carry it out together with the works council. Non-compliance leads to fines, a reversed burden of proof, and exclusion from procurement.

Last update: February 1, 2026 · Reading time: 8 minutes

Quick answer

  • The JPA is governed by article 10 of the EU Pay Transparency Directive (2023/970)
  • Trigger: pay gap ≥5% per job category, no objective justification, not closed within 6 months
  • Contents: analysis, evaluation of pay progression after parental leave, and concrete measures with a timeline
  • Mandatory to carry out together with worker representatives or the works council
  • Non-compliance: fines up to € 10,300 per violation, reversed burden of proof, exclusion from procurement

When is a JPA triggered?

The JPA follows a three-step model. Only when all three steps are met does the obligation arise.

  1. 1

    Pay gap of 5% or more

    Your pay report shows a difference of 5% or more between men and women within a job category.

  2. 2

    No objective justification

    You cannot justify that gap on the basis of objective, gender-neutral grounds.

  3. 3

    Not closed within six months

    The gap has not been closed within six months after the report was submitted.

Many employers think reporting is the end point. It is not. Reporting is the signal. The JPA is what happens when you ignore that signal.

What does a JPA actually contain?

Article 10(2) of the directive prescribes what a JPA must contain. It is an in-depth analysis, not a surface-level check.

Analysis of gender split

Map the share of men and women per job category.

Pay levels by gender

Average pay levels and variable components broken down by gender.

Identification and justification

Pay differences are identified, with a justification for why the gap is or is not warranted.

Pay progression after parental leave

An often-overlooked but critical element: how does pay evolve after returning from leave?

Concrete measures with a timeline

An action plan to close the gaps, with deadlines for each measure.

Evaluation of earlier measures

If measures were already taken, assess their effectiveness.

This is not a one-sided employer process. You carry out the JPA together with worker representatives or the works council, who have consent rights on both the assessment and the action plan.

What is the difference with regular pay reporting?

This distinction is essential. Many employers conflate the JPA with pay reporting, but they serve very different functions.

Pay reporting

A periodic data obligation. You submit figures on pay differences per job category. Reporting is a signalling function: it surfaces where the pay gaps sit.

Joint pay assessment

A corrective escalation mechanism. It goes beyond data: it requires analysis, collaboration with the works council, and a concrete action plan with deadlines to close the gaps that were identified.

Analogy: Think of reporting as the thermometer. The JPA is the treatment that follows when the temperature is too high and you do nothing about it.

What happens if you do not cooperate?

The Dutch Labour Inspectorate (NLA) supervises compliance. Non-cooperation triggers serious consequences.

Fines up to € 10,300 per violation

And these are made public, a direct reputational risk in a tight labour market.

Reversal of the burden of proof

Not the employee, but you must prove that there is no discrimination.

Full damages without ceiling

No upper limit for affected employees, including back pay and non-material damages.

Exclusion from procurement

Possible exclusion from public tenders, direct revenue loss for organisations dependent on government contracts.

Publication of fines hits your reputation as an employer in a labour market where talent is scarce.

How do you prepare?

Don't wait until the JPA is triggered. Preparation starts now.

Get your job categories in order and make sure they are built on gender-neutral foundations

Run a proactive pay gap analysis before the mandatory report does it for you

Document objective pay criteria so you can justify any gaps

Bring your works council in early, they will have to consent later, so include them now

Payqual supports employers at every step of this process: from setting up role clusters and running pay gap analyses to documenting objective pay criteria and preparing for a possible JPA, so you are not caught off guard when the six months are up.

Frequently asked questions

From what company size does the JPA apply?

The JPA obligation is tied to the reporting obligation and applies from 100 employees. Only when reporting reveals an unjustified gap of ≥5% per category that is not closed within six months does the obligation to carry out a joint pay assessment arise.

Does the works council have consent rights over the outcome of the JPA?

Yes. The JPA is explicitly a joint process with worker representatives or the works council. They have consent rights on both the assessment and the action plan with the associated measures and timeline.

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Don't let a JPA take you by surprise

Payqual maps your pay structure, flags >5% gaps, and provides the substantiation to justify or correct them, before the six-month window closes.