Dutch Employers: A New Pay Transparency Law Is Coming. Are You Prepared?
The EU Pay Transparency Directive pushes employers to build structured pay systems. Here’s what it means for your business.
Pay equity is no longer just a topic for future discussion, it’s something all employers in Europe must act on. With the EU Pay Transparency Directive set to be implemented by June 7th, 2026, now is the time to prepare for a new era of fairness, structure and accountability.
This directive aims to close the gender pay gap and bring more transparency into how employees are paid, both during recruitment and throughout the entire employment journey.
In the Netherlands, a pay transparancy bill is currently under consideration, and it will impact every employer, regardless of size. At Parakar, we see this as an opportunity for companies to build a more structured, future-proof HR foundation.
Implications in the Netherlands
The bill introduces three main transparency obligations:
1. Transparency for job applicants
Employers can no longer ask about a candidate’s salary history. Instead, applicants will have the right to receive clear information about the pay range or structure of the job they’re applying for.
2. Transparency for employees
Current employees will gain stronger rights to request information about their pay level, average pay within their category, and how pay is determined.
3. Reporting and evaluation for larger employers
Companies with more than 100 employees must actively report gender pay gaps, bonus discrepancies, and the gender distribution across pay bands and roles. The bigger the company, the more frequent the reporting (varies between once every 1 to 3 years).
If there’s an unexplained pay gap (no objective justification) of more than 5% between men and women for work of equal value, you’ll be required to do a thorough salary evaluation (together with the works council), and prepare a plan of action to resolve this.
Why this matters (even if you’re a smaller employer)
This pay transparency bill is relevant to all employers. Even if you don’t meet the reporting threshold, the foundational requirements still apply: you must set up a clear internal salary structure with defined job categories and evaluation criteria.
That means guessing salaries or making case-by-case decisions based on negotiation or “gut feeling” is no longer good enough.
How Parakar helps: Building your job and salary framework
Our HR support service is here to help companies meet these new requirements in a strategic and compliant way. With our Job and Salary Framework support you’ll:
- Define consistent job levels and categories
- Create transparent salary bands per role
- Ensure pay decisions are based on objective criteria
- Build a foundation for pay equity and future reporting obligations
And it’s not just about compliance, it’s about creating trust, fairness, and structure for your teams.
It’s time to act now!
2026 may feel far away, but building salary structures and internal job frameworks takes time and cross-team collaboration. By starting now, you’ll not only stay ahead of legal obligations, but you’ll also build a more attractive and fair workplace.
Do you want to prepare for the Pay Transparency Directive and bring structure to your (global) HR approach?
Let’s talk. Our local HR experts are ready to support you in building a framework that works for your business.
