Netherlands Postpones EU Pay Transparency Directive Implementation to 2027

Netherlands Delays Key EU Directive

The Netherlands has officially announced a postponement in the implementation of the EU Pay Transparency Directive, setting a new target date of January 1, 2027. This makes the country the first European Union member state to delay the transposition of the directive into national law, which was originally mandated for all members by June 7, 2026.

The decision was communicated by the Dutch Ministry of Social Affairs and Employment on September 17, 2025. The Ministry stated that additional time is required to adequately shape the legislation and its implementation, aiming to ensure employers can comply effectively while keeping administrative burdens to a minimum. The recent collapse of the Dutch government on June 3, 2025, also contributed to the legislative slowdown.

Understanding the EU Pay Transparency Directive

The EU Pay Transparency Directive (Directive 2023/970), adopted in 2023, aims to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women, thereby reducing the gender pay gap across the EU. Key obligations for employers under the directive include:

• Providing pay range information to job applicants prior to employment, often in job postings.
• Prohibiting employers from asking applicants about their salary history.
• Granting employees the right to request and receive information about their individual pay and the average pay levels, broken down by sex, for workers performing the same work or work of equal value.
• Mandatory gender pay gap reporting for companies with 100 or more employees, with a staggered rollout based on company size.
• Requiring a joint pay assessment in cooperation with employee representatives if a gender pay gap of 5% or more exists and is not justified by objective, gender-neutral criteria.
• Prohibiting pay secrecy clauses in employment contracts.
• Introducing a reversal of the burden of proof in pay discrimination cases, meaning employers must prove their pay structures are non-discriminatory.

Implications of the Dutch Postponement

The delay means that the Netherlands will not meet its obligation to implement the directive on time. Consequently, the mandatory pay reporting for employers with 150 or more employees will now apply for the first time in 2028, covering the 2027 calendar year, instead of the originally anticipated 2027 (covering the 2026 calendar year). For employers with 100 to 149 employees, the reporting deadline currently remains unchanged, with the first report due in 2031.

While the postponement offers Dutch employers additional time to prepare, it also introduces a period of uncertainty. The European Commission has the authority to initiate an infringement procedure against member states that fail to implement EU law, which could lead to financial sanctions. However, no announcements regarding potential repercussions for the Netherlands have been made to date.

Recommendations for Employers

Despite the national delay, the directive remains legally binding at the EU level. Therefore, applicants and employees in the Netherlands may still seek to enforce their rights under the directive from June 7, 2026, onwards. Employers are advised to continue reviewing their current pay policies, job evaluation systems, and recruitment processes to ensure alignment with the directive's requirements. This proactive approach can help mitigate compliance challenges and demonstrate a commitment to pay equity and transparency.