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 equal 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 employees' 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. On 26 March 2025, a draft bill (in Dutch) was published transposing the directive into national law. The Dutch government decided not to include any additional measures in the draft bill other than those necessary for implementation. The draft bill lays down the following measures to tackle the pay gap by improving transparency and strengthening enforcement.

Scope

The bill applies to all employees. Some of the measures included in the bill apply specifically to jobseekers who consequently do not yet qualify as employees at that time. The provisions on transparency obligations generally apply to all employers, regardless of organisation size.

Transparency obligations

• Employers are required to provide jobseekers with information about the initial pay or its range and about relevant provisions of any applicable collective labour agreement (CLA) that the employer uses in respect of the job in question. This information must be provided in the job vacancy or prior to the job interview.
• Employers are not allowed to ask about previous salaries.
• Employers must ensure that job vacancy notices and job titles are gender-neutral and that recruitment processes are led in a non-discriminatory manner.
• Employees will be entitled to information on pay policies and pay progression.
• Employees can request written information on their individual pay level and the average pay levels, broken down by sex, for categories of employees performing equal work or work of equal value. Employers must provide this information within two months from the date on which the request is made.

Reporting obligation

Employers with at least 100 employees are required to report on the gender pay gap within their organisation from 2026 onwards. They are to provide data on the average pay differences in their organisation. They must apply the wide pay concept here, including all types of pay that employees receive, both in cash and in kind, and both directly and indirectly. Subordinate legislation will further lay down the exact pay components that employers will have to report on.

Employers will also have to report on pay differences within categories of employees performing equal work or work of equal value and communicate this information internally within their organisation. The frequency of this mandatory reporting depends on the number of employees working for the employer. The rules are as follows:

If a report shows pay differences that objective criteria cannot justify, the employer must take measures to eliminate these differences.

Legal protection

If an employer does not comply with the pay transparency obligations, the burden of proof shifts entirely to the employer. This means that if there is a claim for forbidden discrimination, the employer will have to show that the rules on equal pay and pay transparency have not been broken. Additionally, civil law remedies are available for the employee, including the option to lodge a claim for compensation based on unlawful act.

Employees' participation

The directive gives employees' representatives, such as trade unions and the works council in the Netherlands, an important role in ensuring equal pay in organisations. In the case of matters regulated in a CLA, trade unions have a role. If an issue concerns company-level policy or decision-making, the bill confers this power on the works council. For example, the works council's current right of prior consent for the implementation, amendment or cancellation of a pay or job evaluation system will be expanded to proposed decisions on aspects such as the objective, gender-neutral criteria underlying the company's pay structure and the pay assessment to be carried out if a pay gap of more than 5% between male and female employees is reported.

Supervision and enforcement

The Netherlands Labour Authority (NLA) is charged with supervision and enforcement, and employers that break the rules can be fined up to €10,300 per infringement. The NLA is also authorised to impose an order subject to a penalty to convince non-compliant employers to meet the obligations.

Entry into force

The consultation stage for the draft bill runs until 7 May 2025. The proposed date of entry into force is 7 June 2026, the implementation deadline. A gradual entry into force, as indicated above, will apply for the reporting obligation, depending on employer size.

Equal Pay and Pay Gap Investigation Workshop

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

If you would like to have more information on this topic please contact Jet Stolk (Employment Partner) or Anouk Boutens (Employment Partner), or one of the other team members.