Netherlands: Update: Changes in Bill to Implement the European Pay Transparency Directive
The Bill to Implement the European Pay Transparency Directive has been revised. The revised proposal introduces several changes, including new terminology for remuneration systems, clarification on what employer is deemed to be the relevant employer in the context of the legislative proposal, the removal of the Works Council’s role in confirming pay reporting information, and clarification on at what stage of the job application process employers are required to share salary ranges with candidates.
On 19 January 2026, the Minister for Social Affairs and Employment submitted an amended version of the bill for the implementation of the EU transparency Directive with the Council of State for their advice. The Directive must be implemented in national legislation by 7 June 2026 at the latest, but the Minister had previously announced that the Netherlands would not meet that deadline and that implementation would be postponed until 1 January 2027.
Compared to the draft that was previously put out for public consultation online, which we previously discussed in our blog ‘Netherlands: Bill to Implement the European Pay Transparency Directive Published’, the current version contains a number of amendments and clarifications. Below you will find the most important updates:
- New terminology for remuneration systems
A key change concerns the terminology relating to remuneration structures. Whereas previous versions referred to ‘pay structures’, the bill now requires employers to have a job evaluation and classification system in place. This amendment is intended to ensure better alignment with the job evaluation systems used in practice.
- Clarification of the term ‘employer’
Earlier drafts aligned with the definition of ‘company’ as defined in the Works Council Act (in Dutch: Wet op de Ondernemingsraden). For larger undertakings comprising multiple entities, this led to uncertainty. In the amended bill, the definition of ‘employer’ is aligned with practice by taking the contractual employer as the starting point.
- Role of Works Council
The requirement that the Works Council (in Dutch: Ondernemingsraad) must confirm the accuracy of the information provided under the reporting obligation has been removed from the bill.
- Changes to pre-employment transparency
The bill includes measures to increase pre-employment transparency. It has been clarified that there is no obligation to include the salary or salary range in the job advertisement. However, employers must still provide information on the salary range prior to the salary negotiations.
Once the Council of State has issued its opinion on the amended bill, it will go to the House of Representatives for debate and the Senate before it can enter into force.
Key Points for HR
We will continue to monitor developments and keep you updated regarding the progress of the implementation of this bill.
