New legislation: Pay transparency (2026)

The basic idea is simple: equal pay for equal work. However, we know that this does not always happen automatically in practice. The new legislation should ensure greater openness about salaries and better enforcement. No more wage secrets, but fairness and transparency.

From now on, job applicants will have the right to know, before their first interview, what their approximate salary will be. This can be done by including the salary range in the job posting, but it may also be disclosed at another time—as long as it happens before the interview takes place. Additionally, asking about a candidate’s previous salary will be prohibited. This will make the playing field more level and transparent.

Current employees will also gain more rights. They will be able to ask about the criteria on which their salary is based, as well as the average pay of colleagues in similar positions. This will make pay disparities more visible and easier to discuss.

Employers with 100 or more employees will soon be subject to a reporting obligation. Not all at once, but in phases:

• ≥250 employees: annual reporting, starting in 2027

• 150–249 employees: every three years, starting in 2027

• 100–149 employees: every three years, starting in 2031

Some of these figures are published via a national portal. That sounds exciting, but it should also be seen as an opportunity: organizations that have their affairs in order can use this to showcase their achievements.

If such a report reveals a discrepancy of 5% or more that cannot be adequately explained, you must rectify it within six months. If you are unable to do so, a wage review will be conducted in consultation with the works council. This is not an optional measure: it is a means of ensuring that inequality is actually addressed.

We are all familiar with the clauses in contracts that prohibit you from discussing your salary. These are disappearing. Employees are now free to share what they earn. This can sometimes feel daunting, but ultimately it helps to make remuneration more transparent.

The Dutch Labor Inspectorate will be monitoring compliance. Fines will be imposed on employers who fail to comply with the rules. And please note: in legal proceedings, the burden of proof often shifts to the employer. In other words, it will soon be up to you to prove that you are paying fair wages.

Here are the steps you need to take:

1. Map out your reward structure – Ensure your criteria are clear and objective.

2. Make a plan for job applications – Decide how and when you will share salary information.

3. Prepare reports – Especially with 100+ employees, you need time to organize data properly.

4. Establish a process for information requests – Employees should be able to get answers easily.

5. Train your managers and recruiters – No more questions about salary history, but clear communication about ranges.

6. Set up a recovery process – What do you do if differences do come to light?

The Pay Transparency Act may feel like an additional obligation, but it is actually about something positive: honesty and trust. By getting your remuneration policy in order now, you are demonstrating that you are a transparent, forward-looking employer. And that works not only with regard to the legislator, but also with regard to your current and future employees.

The EU Pay Transparency Directive must be transposed into national law by June 7, 2026, at the latest. However, the Dutch implementation law is still pending, which means that the rules are not expected to actually come into force until 2027. This may also cause a slight delay in the first reporting obligation, for example for employers with 150+ employees to report on 2027 (in 2028). The exact schedule will be finalized once the Dutch legislation has been adopted.