Draft bill to reduce the gender pay gap

The draft bill implementing the Directive on pay transparency between men and women aims to contribute to equal pay between men and women. The difference in hourly pay between men and women is considerable: 12% on average and as much as 16.4% in the business sector. The aim of the draft bill is to further reduce the gender pay gap, which has been narrowing only slowly, without unnecessarily increasing the administrative burdens for employers.

This draft bill, which was available for internet consultation from 26 March to 7 May 2025, implements Directive (EU) 2023/970 of 10 May 2023 to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women through pay transparency and enforcement mechanisms (hereinafter: ‘the Directive’). The Directive is required to be transposed into Dutch law by 7 June 2026 at the latest. This does not appear to be feasible (see below). In this article, we discuss the draft bill and the expected timeline for implementation.

Gender pay gap

The difference in the hourly wages received by men and women in the private sector in the Netherlands is still considerable. The new legislation should make it easier for employees to gain insight into whether they are being paid equally compared to other employees performing equal or equivalent work. This transparency will make it easier for employees to challenge pay discrimination.

Equal Treatment of Men and Women Act

Most of the changes are being made to the Equal Treatment of Men and Women Act, such as:

• Employers will be required to have pay structures in place ensuring equal pay for equal work or work of equal value.
• It will be prohibited to ask job applicants about their salary history.
• Pay transparency obligations towards employees, including salary information for employees in equal or equivalent positions.
• Reporting obligations regarding the pay gap between female and male employees for larger employers with 100 or more employees. The frequency of reporting depends on the number of employees: employers with 100 to 250 employees must report every three years, employers with 250 or more employees must report annually. The report contains data on the pay gap, including information on total pay and additional or variable components. Some of this information is made public.
• Pay assessment: if the pay reporting demonstrates pay differences of 5% or more in a category of employees that cannot be justified on the basis of objective gender-neutral criteria, and these differences are not remedied within six months, employers must carry out a pay assessment to identify, remedy and prevent the pay differences.
• Rules regarding legal protection, such as shifting the burden of proof to the employer and a prohibition on discrimination when employees invoke the law.
• Administrative enforcement by the supervisory authority (the Dutch Labour Inspectorate), such as issuing a warning and imposing an administrative fine of up to €10,300 per violation per employee or an order subject to a penalty for a maximum of two years.

Works Councils Act

• Extension of the works council’s right of consent with regard to remuneration structures or job evaluation systems, regarding objective gender-neutral criteria in the company’s wage structure and the manner in which unjustified differences in remuneration between men and women are remedied.
• The works council must be informed and consulted about data relating to the pay gap between men and women in the company.

Allocation of Labour by Intermediaries Act

• Information obligations regarding temporary agency workers on equal pay for equal or equivalent work.

What happens next?

This draft bill contains a so-called pure implementation of the Directive, which means that the government has chosen not to go beyond what is required by the Directive. The government has announced that the anticipated timeline for timely implementation of the Directive is proving unfeasible. The aim is to submit the bill to the Council of State for advice before the end of this year and have it debated in parliament in 2026. The proposed entry into force date is 1 January 2027, which extends beyond the 7 June 2026 implementation deadline as stipulated in the Directive. The reporting obligation for employers with 150 or more employees will first apply to calendar year 2027, instead of calendar year 2026. The reporting deadline for other reporting employers (with 100 to 150 employees) will be implemented in accordance with the Directive (ultimately 7 June 2031).

Although some companies are currently adjusting or putting an end to their diversity policies, we advise employers to prepare for the upcoming legislation. In anticipation of the Act Implementing the Directive on Pay Transparency between Men and Women, we therefore conclude with some concrete suggestions for employers:

• Assess to what extent there is currently equal pay between male and female employees and determine whether there is a justification for any pay differences between these employees.
• Clarify based on what policies and criteria employees are paid.
• Investigate to what extent the future pay transparency and reporting obligations will apply and determine whether any changes to current practices are required (for example changes in the pay and/or recruitment and selection policies).
• Involve the works council in a timely manner in respect of pay or job-grading systems (in the context of the current right of consent under Article 27(c) of the Works Councils Act) and consider how the works council will be timely involved in the future, given the (possible) amendments to the Works Councils Act.

Want to know more? Feel free to contact the Employment and Pensions Team at Van Doorne, Claire Vogel & Daniëlle Baveco