The Netherlands’ latest stance on EU Pay Transparency

The European Pay Transparency Directive (EU 2023/970) (the Directive) is set to transform pay practices across Europe, and the Netherlands continues to make progress with its implementation efforts. Following an initial legislative proposal in March 2025 (see our previous blog), the Dutch government presented a revised legislative proposal in January 2026. This blog highlights the most notable changes.

Amended definitions

An important adjustment in the revised proposal relates to the definition of ‘employer’. When determining who qualifies as an employer within the meaning of the Directive, the assessment is now based on how the employment relationship operates in practice. Generally, the party with whom the employee has entered into the employment contract or public law appointment is considered the employer. This clarification is particularly relevant for larger organisations with multiple entities and complex group structures, where determining the employer has been challenging.

Beyond the employer’ definition, the broader concept of ‘wage structures’ (loonstructuren) has also been replaced by the more specific term ‘job evaluation and classification system’ (systeem voor functiewaardering en- indeling).

Reporting obligations

Another significant change, beneficial for larger organisations, is that while consolidated reporting remains impermissible, group-level reporting might now be possible in certain specific circumstances. For instance, where a parent company acts as the employer, centrally determining remuneration policies with limited or no discretion for its subsidiaries to deviate.

In respect of agency workers, the starting point under the revised proposal remains that they must be included in the reporting of the hiring entity (inlener). The key change lies in how they are to be included. Where agency workers are engaged, the report must now be divided into two distinct parts: one for the hiring entity’s own employees and one for the agency workers.

The role of the works council in relation to pay reporting has also been clarified. The works council is no longer required to approve or endorse the report, thereby removing its formal responsibility for the employer’s reporting obligations. Responsibility for confirming the accuracy of the report rests solely with the employer’s management. 

Personal data

In relation to personal data, a new provision clarifies that any data processed for transparency rights, reporting obligations and pay assessments may only be used to apply the principle of equal pay. This restriction applies to everyone with access to the data. Notably, despite acknowledging concerns about sensitive information, the Dutch government has deliberately opted against introducing a minimum size for comparator groups. This means that, in some cases, individual salaries may be directly or indirectly identifiable, which the Dutch government considers to be proportionate to the aim of ensuring equal pay.

Outlook and employer readiness

Overall, the revised proposal shows the Netherlands’ commitment to implementing pay transparency rules that balance compliance, practical considerations and privacy. The revised proposal has now been submitted to the Council of State for advice, marking a critical next formal step in the Dutch legislative process. Concurrently, the Netherlands appears steadfast in maintaining its intended effective date of 1 January 2027, despite the European Commission’s preference for the original June 2026 deadline. As the revised proposal advances, now is a crucial time for employers to assess and adjust their pay policies.