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The Netherlands has delayed to January 1, 2027 the national implementation 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.
The intended commencement date remains January 1, 2027, subject to parliamentary approval.
AT A GLANCE
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. EU Member States were required to transpose the Directive into national law by June 7, 2026. Employers must comply with the applicable national legislation.
Status of Implementation EU Pay Transparency Directive
The Dutch implementation bill (parliamentary dossier 36949) was submitted to the House of Representatives on May 21, 2026. An amended bill and the government’s responses to parliamentary questions were published on September, 2 2026. The bill was referred for plenary debate in September 2026. The intended commencement date remains January 1, 2027, subject to parliamentary approval.
- Several EU Member States (Greece, Italy, Lithuania, Malta) have enacted legislation to implement the Pay Transparency Directive, while others, including the Netherlands, are still progressing their national legislation. Implementation dates and requirements therefore differ between EU Member States.
- 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.
- Intended commencement date: January 1, 2027, subject to parliamentary approval.
- 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.
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 must submit their first gender pay gap report by June 7, 2028, based on 2027 data.
- Employers with 100 to 149 employees must submit their first gender pay gap report by June 7, 2031, based on 2030 data.
Employers in the Netherlands should use the remaining preparation period to review their pay structures, recruitment practices and reporting processes. Early action is strongly recommended.
Proposed Changes for Works Councils Act 2027
The Dutch bill proposes amendments to the Works Councils Act (WOR) as well. These changes concern employee representatives’ involvement in pay structures, equal pay and pay reporting.
The proposed amendments will include:
- Article 27: more explicit consent rights concerning pay systems, objective and gender-neutral job evaluation criteria, employee categories, measures to remedy unjustified pay differences and specified pay evaluations.
- Article 31d: consultation with the Works Council about the accuracy of information used for statutory pay reporting.
- Article 35c: additional rights for the personnel representation body, or PVT, concerning specified job evaluation criteria and employee categories.
These proposals build on existing Works Council rights, they should not be interpreted as giving the Works Council a general right to determine individual salaries.
The government has identified January 1, 2027 as the intended commencement date, subject to completion of the legislative process. The date is not guaranteed, and we will keep you informed.
