The Netherlands has now formally announced a delay the implementation deadline of the EU Pay Transparency Directive (EU) 2023/970.
The Directive was adopted in 2023 and obliges EU Member States to transpose its provisions into national law by June 2026. The Netherlands is the first EU member state to publicly confirm a postponement of national implementation as it cannot meet the deadline. Reason for delay is that The Dutch government needs more time to draft the effective national law.
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Principles EU Directive
EU law becomes effective in EU member states through two main types of legal instruments: EU Regulations and EU Directives.
- EU Regulations: These laws automatically become binding in all EU member states without needing to be transposed into national law.
- EU Directives: Directives set goals that all EU countries must achieve, but each country decides how to implement them, but the EU sets the deadline.
The EU Pay Transparency legislation is a Directive.
The Directive consists of a framework to strengthen the principle of equal pay for equal work or work of equal value through enhanced transparency, reporting obligations, and enforcement mechanisms.
It obliges EU employers to take concrete actions in respect of pay transparency and discrimination prevention. Each European employer will have to implement the Directive into national law by June 2026.
Status of Implementation EU Pay Transparency Directive
- Several EU Member States have published draft legislation to transpose the Pay Transparency Directive, but no Member State has yet completed the full implementation of the Directive into local law.
- In the Netherlands, the first mandatory gender pay gap report will be based on 2027 data, rather than 2026 as originally expected.
- Despite the postponement of the Netherlands, employers remain under a legal obligation to prepare for compliance with the Directive’s requirements.
Announcement Netherlands Delays EU Pay Transparency Directive
On September 17, 2025, the Dutch Ministry of Social Affairs and Employment formally announced that implementation of the EU Pay Transparency Directive will be postponed until January 2027, instead of the original deadline of June 2026.
In its official communication, the government stated that additional time is required to draft and finalise the necessary national legislation. The stated objective of the delay is to ensure effective implementation by employers while limiting disproportionate administrative burdens.
- New Implementation Date: January 1, 2027.
- Reporting Delay: Pay gap reporting for companies with 150+ employees will cover the 2027 calendar year, with the first report due in 2028, instead of 2026 data.
EU Law Risks: Netherlands Delays EU Pay Transparency Directive
The delay exposes the Netherlands to potential consequences under EU law. Where a Member State fails to transpose an EU directive within the prescribed deadline, the European Commission may initiate infringement proceedings.
At the time of writing, no formal enforcement action or public statement has been issued by the European Commission in relation to the Dutch delay.
Legal Effect for Employers in the Netherlands
For employers in the Netherlands, the postponement of the EU Directive into national Dutch law, is likely to result in a transitional period.
During this phase, Dutch courts are expected to interpret existing national employment and equal pay legislation in conformity with the objectives and principles of the Directive, in line with established EU case law.
Dutch Employer Obligations Under the Netherlands Pay Transparency Directive
The EU Pay Transparency Directive 2026 introduces a range of substantive obligations for employers, including:
- Pay transparency obligations towards job applicants and employees.
- The use of objective and gender-neutral pay structures.
- Mandatory gender pay gap reporting, subject to employee headcount thresholds.
- Corrective measures where unjustified pay gaps are identified.
Under the revised Dutch timeline:
- Employers with 150 or more employees will be required to publish their first gender pay gap report in 2028, based on 2027 data.
- Employers with 100 to 149 employees remain subject to the current reporting timeline, with the first report expected in 2031.
Although formal implementation in the Netherlands has been deferred, employers are not relieved of their responsibility to prepare for compliance. Early action is strongly recommended.
