Pay Transparency: from revised bill to submission to the House of Representatives – what do employers need to know now?

The implementation process for the EU Pay Transparency Directive is making progress. Following the submission of a revised bill to the Council of State for advice in January 2026, a significant next step was taken on 21 May 2026: the bill to implement the Directive was submitted to the House of Representatives. A good time to summarise the key developments and to consider what this means for your organisation.

The revised bill: substantial amendments

The revised bill sent to the Council of State in January already contained a number of significant changes compared to the first version. The most striking amendments:

• Definition of employer. The revised bill no longer aligns with the concept of an ‘undertaking’ as defined in the Works Councils Act (WCA). An employer is defined as the party with whom the employee has entered into an employment contract or a public appointment; a more practice-oriented approach.
• Further definition of terms by governmental decree. Article 1 of the Equal Treatment of Men and Women Act defines the terms used in the Pay Transparency Directive. In order to provide as much clarity as possible about the transparency obligations and to ensure consistency in compliance, the revised proposal stipulates that these concepts, including in any case the concepts of pay and pay gap, may be further defined by governmental decree.
• Group reporting. Under certain conditions, consolidated reporting is possible where a parent company can be regarded as the employer, for example, because the remuneration policy is determined centrally. This amendment is particularly relevant for large groups.
• Changed role of the works council. The works council is no longer required to confirm the accuracy of the pay report; instead, the company must consult the works council on the accuracy of that report, with the management itself bearing responsibility for its accuracy. This approach is more in line with the requirements of the Pay Transparency Directive and gives the employer more responsibility for the accuracy of the reporting. Important: the works council’s right of consent based on Article 27 of the WCA remains in place. This means that, in addition to being consulted on the accuracy of the wage report, the works council must also give its consent to the system itself.
• Temporary agency workers. A number of changes have been made with regard to the position of temporary agency workers. In this context, the hirer’s report must consist of two parts: one part must report on its own employees, and the other part must report on the temporary agency workers.
• From “wage structures” to “job evaluation and classification system”. The amended terminology aims to ensure consistency in the legislation: employers must have ‘a job evaluation and classification system that guarantees equal pay for equal or equivalent work’.
• Use of personal data. A new article stipulates that personal data processed on the basis of the right to information or on the basis of the reporting and evaluation obligation may only be used for the application of the principle of equal pay.
• Additions for educational institutions. The revised proposal contains specific amendments for the education sector.

Submission to the House of Representatives: what has changed and what stands out?

The bill submitted to the House of Representatives incorporates the majority of the Council of State’s advice and is, in many respects, more detailed than previous versions. However, one aspect stands out: the Council of State advised that the deadline for the first pay report for employers with 150 or more employees should be brought into line with the Directive, namely 7 June 2027. That advice has not been adopted. The deadline remains 7 June 2028.

Vertical direct effect: an acute risk for public sector employers

One point that requires immediate attention concerns the implementation deadline. The Directive must be implemented by 7 June 2026, whilst the government has set 1 January 2027 as the latest for its entry into force. The Explanatory Memorandum acknowledges this and explains that certain provisions of the Directive may have vertical direct effect due to this delay. This means that public sector employees will be able to invoke rights under the Directive from 7 June 2026 onwards, even before the implementing legislation comes into force. For public sector employers, this is a risk that requires attention now.

What can you do now?

The succession of developments underlines that preparation cannot wait for definitive legislation. Employers – in both the public and private sectors – would be wise to already:

• Assess how the pay structure is organised and documented and check whether the current system meets the requirements of the Directive.
• Review the pay transparency and reporting obligations and the role of the works council.
• For group structures, assess whether group reporting is an option.

Would you like to know more about the bill or the obligations arising from it? Please contact the Employment and Pensions team at Van Doorne, Claire Vogel & Daniëlle Baveco. We would be happy to assist you.