Equal pay for men and woman: the state of play

The year 2025 marks the 50th anniversary of the introduction of the Equal Pay Act, the precursor of the current Equal Treatment (Men and Women) Act. While the notion that men and women should earn the same pay for performing the same work has long been enshrined in both domestic and international law, the gender pay gap remains an intractable challenge.

According to Statistics Netherlands' most recent data, women in business earn on average 16.4% less per hour than their male counterparts. After adjusting for factors such as the type of work, job, education and experience, the pay difference is still 6.9%. This means that women are still paid considerably less than men for the same work. The difference is partly explained by the fact that women often work in relatively low-paid sectors and are more likely to work part-time. Women also advance to top management roles less frequently. These factors contribute to the pay gap.

The pay gap has a consequence that many people overlook: the pension gap. On average, retired women receive 40% less pension than men, which affects their financial security significantly.

The Directive on equal pay for equal work or work of equal value between men and women

Pay transparency and improved access to relevant information help reveal any pay gap, raising workers' and employers' awareness of pay differences.
The Directive on equal pay for equal work or work of equal value between men and women, adopted by the EU in 2023, aims to close the pay gap and create a fairer pay system. This directive, which must be transposed into national regulations no later than June 2026, lays down the following measures to tackle the pay gap by improving transparency and strengthening enforcement.

Access to information

Under the directive, employers are required to provide jobseekers with information about the initial pay or its range in a job vacancy notice or prior to a job interview. Employers are not allowed to ask about previous salaries. The directive also gives workers the right to information on pay policies and pay progression. Workers can request written information on their individual pay level and the average pay levels, broken down by sex, for categories of workers performing equal work or work of equal value. This equips workers with key tools for assessing whether their pay is equal to that of their current or future colleagues.

Reporting obligation

Employers are required to report on the gender pay gap within their organisation from 2026 onwards. This means that they will have to provide annual data on the average pay levels of men and women performing equal work or work of equal value. 

Access to justice

Under the new directive, if there is a prima facie case of unequal pay, the employer bears the burden of proof to show that the rules on equal pay and pay transparency have not been broken. Penalties can be imposed if infringements have occurred.

Workers' participation

The directive gives workers' representatives, such as the works council in the Netherlands, an important role in ensuring equal pay in organisations. The representatives are entitled to receive information on pay levels and pay criteria, which must be objective and gender-neutral. This includes the right, on behalf of workers, to request information on individual and average pay levels broken down by sex. If a pay gap of more than 5% between male and female workers is reported and not justified, the representatives and the employer must carry out a joint pay assessment in cooperation with each other. The assessment aims to identify and remedy unjustified pay differences.

The draft implementation bill, which is expected in March 2025, will clarify how the directive is to be introduced in the Netherlands.

Equal Pay and Pay Gap Investigation Workshop

On 3 April 2025, Houthoff is holding an Equal Pay and Pay Gap Investigation Workshop. This workshop will allow employers to learn more about the new directive and the steps they can take to promote equal pay.

There are still a limited number of workshop places available. The workshop will be held in Dutch. If you would like to take part, please contact Jet Stolk (Employment Partner) or Anouk Boutens (Employment Partner), or one of the other team members.