By Benjamin Kerner
BLOG OVERVIEW: In January 2026, the Netherlands published draft legislation to transpose the EU Pay Transparency Directive by amending its Equal Treatment of Men and Women Act of 1980. The proposed changes emphasize job evaluation and classification systems, clarify employer obligations regarding temporary workers, and shift work council roles from data validation to advisory. Notably, the Dutch government's proposed reporting timeline, which require first reports by June 2028, directly conflicts with the EU Directive's June 2027 deadline, and the European Commission has warned of potential infringement proceedings against non-compliant member states.
On January 20, 2026, the Netherlands published draft regulations and an explanatory memorandum stating how it would proceed with implementing the European Union (EU) Pay Transparency Directive into its existing legal framework. The published bill aims to align Dutch law to the Directive through proposing amendments to the Netherlands' existing Equal Treatment of Men and Women Act of 1980. These amendments, as drafted, appear to be a relatively minimalistic transposition of the directive and present a handful of targeted clarifications within the Directive framework, including the following:
Emphasizes a Job Evaluation and Classification System
The draft legislation replaces the term "pay structure" with "a system of job evaluation and classification." While the Directive does not require employers to conduct job evaluation, it appears to be reinforcing the directive's priority of 'gender-neutral job classification systems' to support the assessment of work of equal value and the structuring of worker categories.
The established system, where used, will provide the basis for analyzing workers performing the "same work or work of equal value" through determined worker categories. Should an employer fail to institute a job evaluation and classification structure, then work of equal value would be based on the data an employer has available.
Clarifies Employer Relationship with Temporary Work Agencies
Employers that recruit temporary workers will be required to share pay information with agencies providing temporary employees. For reporting purposes, temporary employees will be required to be included in the employer's (not the temporary employment agency's) headcount in their submission. Should a temporary employment agency be eligible for reporting itself, the entity should only include employees who perform work related to their own operation and benefit. Finally, the temporary employment agency holds the responsibility (and the liability associated) to pay the correct wage and must work with the employer to ensure this is occurring.
Updates Roles of Work Councils
Employee-led work councils under the proposed amendments are expected to play an advisory role in the methods employers use to meet transparency and reporting obligations. Work councils will also no longer be required to validate the accuracy of employer reported data, thus changing their role from data validation to an advisory on data methodology.
Pay Transparency and Employee Right to Information
The pay transparency and employee right to information requirements in the draft amendments mirror the requirements of the Directive. Employers must inform applicants about salary ranges during the applicant process and may not ask about salary history. Additionally, job vacancies and job titles must be gender neutral.
Employees have the right to request information on their employer's remuneration policy and are entitled to information on their own individual remuneration, as well as the average pay levels by gender in their respective worker category.
The Dutch Reporting Timeline Conflict
While the draft legislation has been published, the intention of the Dutch government since 2025 has been to delay implementation of the Directive. The legislation sets requirements for employers with 150 or more employees to submit their first pay report by June 7, 2028, covering 2027 pay data. This directly contradicts the EU directive, as its official reporting deadline for employers of this size is June 7, 2027.
On December 18, 2025, on behalf of the European Commission (the executive branch of the European Union), EU Commissioner for Equality Hadja Lahbib answered questions that had been received by the European Parliament regarding the Netherlands' public intention to delay implementation of the Directive. In the statement, Lahbib indicated that Member States that fail to comply with the Directive and its associated reporting deadlines may be subject to "infringement proceedings, starting with a letter of formal notice in accordance with Article 258 of the Treaty on the Functioning of the European Union." Given the publication in January 2026 of its bill and proposed timeline, the Netherlands is moving forward with the delay regardless of this recent EU commentary and warning.
Moving Forward
Amid the additions that have been made to the Directive and their discrepancy in reporting timelines, the Dutch government has not fully elaborated on the mechanisms that employers must use to comply with the draft legislation. It is possible that the Netherlands will release further regulatory guidance as the reporting window gets closer.
Importantly, the Directive is currently active and in force despite the delay in national legislation. While legislation is finalized, the Dutch court system could begin interpreting Dutch law through the lens of the Directive, increasing potential risk for employers.
DCI will continue monitoring developments and provide updates as needed. Sign up to receive our monthly EU Pay Transparency Directive newsletter here.
