The Pay Transparency Law explained

The new European Pay Transparency Directive requires employers to be fully transparent about compensation, job evaluation and equal pay for equal work. The burden of proof shifts to the employer and non-compliance carries significant risks.

Last update: September 17, 2026 · Reading time: 8 minutes

What does the Pay Transparency Directive require?

This explanation follows the Dutch bill of 27 May 2026, not an act already in force. It defines pay level as gross pay. Definitions including base pay, gross pay and pay gap may be further specified in or under an order in council (AMvB). How reporting data is determined is also left to subordinate legislation. The bill therefore does not fully specify pay components, conversions and calculations.

Transparent pay structures and job evaluation
Equal pay for equal and equivalent work
Objective, gender-neutral justification of compensation
Reporting on pay differences
Right to pay information for employees

Video · 4 min

What counts as pay?

Does holiday pay count? What about an IKB budget or a bonus? See in four minutes which three pay amounts the law uses, and what for.

Watch the video

What does this concretely mean for your organisation?

The legislation translates into concrete obligations in your daily practice.

Objective and gender-neutral job classification

Jobs must be evaluated using objective, gender-neutral criteria: skills, effort, responsibilities and working conditions. Different roles can still be legally equivalent when the value of the work is comparable.

Gender pay gap report

Under the bill, organisations with 100 or more employees periodically report pay differences to the Minister of Social Affairs and Employment (SZW). The minister receives reports and publishes points a-f. This is separate from Labour Inspectorate supervision (Articles 10c and 10e Wgbmv).

Pay information request

Any employee can submit a written request to see their pay compared with the average in the same category, broken down by gender. Employers must provide a written response within two months. This applies to all employers, regardless of size.

Inform employees annually

Employers must inform employees annually that they have a right to pay information and how to submit a request (WGBMV article 10b paragraph 4).

Make pay criteria available

Pay criteria must be made available proactively so employees do not need to ask for them. For employers with 50+ employees, this also includes criteria for pay progression (WGBMV article 10a).

Pay gap by job category

The employer submits the report to the Minister of SZW and also shares point g, the pay gap per category, with its own employees (Article 10c(4) and (5) Wgbmv).

Recruitment information obligation

The starting salary or salary range must be shared before the first interview. Employers may not ask for current or previous salary, and job titles must be gender-neutral (WGBMV article 3 paragraphs 5-7).

Joint pay assessment (JPA)

Employers subject to reporting must carry out a joint pay assessment (JPA) if the report shows a pay gap of 5% or more within an employee category, there is no objective, gender-neutral justification and the gap is not remedied within six months of submission (Article 10d Wgbmv).

Handle clarification request

Employees may make a written, annual demand for insight into their own pay and the average pay by gender for equal or equivalent work. You have two months to respond; a missing or incomplete reply reverses the burden of proof (Directive 2023/970, article 7).

Each of these obligations carries its own legal and financial risks. We show you what they are and how to prevent them.

The risks are substantial

Non-compliance with the legislation carries significant legal and financial risks.

Reversal of burden of proof

As an employer, you must demonstrate that there is no discrimination. In case of doubt, the ruling is in favour of the employee.

Strict deadlines for pay disclosure

Failure to respond to information requests in time can lead to sanctions and strengthens the employee's position in disputes.

Mandatory Gender Pay Report & JPA

A pay gap of 5% or more within an employee category requires a joint pay assessment if there is no objective, gender-neutral justification and the gap is not remedied within six months of report submission. Six months is the remediation period, not the deadline for carrying out the assessment.

Publication of fines

Fines for non-compliance can be made public, resulting in reputational damage.

Risk of claims in job evaluation

Payqual offers a legally watertight, reproducible and transparent process that fully aligns with European and Dutch legislation.

Objective job evaluation according to gender-neutral criteria
Complete pay definition in accordance with the directive
GDPR-proof processing with data minimisation
Pay reports for submission to SZW
Complete audit trail for inspections

Are you sure your organisation complies?

Discover how Payqual helps your organisation stay compliant with pay transparency legislation, without legal risks.

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Official documents

View the key source documents below. The PDF opens in a new tab.

Open European document (PDF)Bill of 27 May 2026 (PDF)Advisory opinion and further report (PDF)