In this blog, we explain the background of the new EU Pay Transparency Directive (Directive). Furthermore, we summarise the (future) obligations for employers to take into account as well as the implementation deadline of the Directive. Finally, we describe what actions need to be taken by the employer to adhere to the Directive.
What is the EU Pay Transparency Directive?
On May 10, 2023, the European Union (EU), adopted the abovementioned Directive. The EU Pay Transparency Directive is part of the EU strategy of 2020-2025 on gender equality.[1] The salary gap between men and women in the EU is on average 13%.[2]
Although an EU Directive is legally binding to the Member States, this legislative instrument does not entail maximum harmonisation of the relevant Employment Laws of the Member States. Each Member State is still allowed to implement the Directive in accordance with their own vision, but it is obligatory that the minimum rules in the Directive are directly transposed into national legislation. This brings us to the next question: what are the employers’ obligations under the EU Pay Transparency Directive?
What are my obligations as an employer?
The onboarding process
First of all, employers must use gender neutral in their (upcoming) vacancies, unless the nature of the job requires someone of a specific gender. Before the first application interview, employers must have informed the applicant of the starting salary or the salary scales for every open vacancy. Employers and recruiters may no longer ask about the salary history of the applicant either.[3]
Rights of employees
Secondly, according to the new Directive, employees will have the right to ask employers about their individual pay levels in relation to the average wage of their colleagues. In particular, they will have the right to request the objective, gender-neutral criteria used by the employer to determine the salaries, salary levels (gross annual salaries and corresponding gross hourly wages), and salary trends of the company’s employees.[4]
As a consequence of the employees’ new rights, employers will be obliged to allow employees to exercise this right.
Reporting obligations
Thirdly, the Directive compels employers to report about gender pay gaps to the competent national authorities in the EU. According to Article 9(9) of the Directive, employers must provide information about the gender pay gap between workers by categories of workers broken down by ordinary basic wage or salary and complementary or variable components. This reporting obligation applies to employers with 100 employees or more, but Member States may decide that employers with fewer employees should also adhere to the reporting obligation(s) in Article 9 of the Directive.
When does the EU Pay Transparency Directive enter into force?
Officially, the Directive enters into force on June 1, 2026. However, only a few Member States have implemented the Directive at the time of writing this blog.[5]
What should I do as an employer?
First and foremost, it would be wise to follow updates about the implementation process of this Directive (in the Netherlands). Secondly, scholars advise to assign a team of specialists to assess whether there are pay gaps or other matters that need to be addressed under the Directive.[6] Once the assessment has been made, the employer should undertake the necessary measures to abide by the Directive.
How can Amice Advocaten help you?
At Amice Advocaten, we advise and represent parties in labour law matters on a regular basis. To prevent legal disputes later on, it is recommendable to assign a legal counsel for advice when you want to adhere to your obligations under the EU Pay Transparency Directive. We are available via e-mail at info@amice-advocaten.nl, and telephone number: 030 2300 230.
[1] Recital 12 of the Directive (EU) 2023/970 of the European Parliament and of the Council of 10 May 2023 to strengthen the application of the principle of equal pay for men and women for equal work or work of equal value through pay transparency and enforcement mechanisms (hereafter: the Directive).
[2] Recital 33 of the Directive.
[3] Recital 33 of the Directive.
[4] Article 7 of the Directive.
[5] L. Dobber, ‘Nederland legt EU-deadline voor gelijke beloning naast zich neer en vreest niet voor de gevolgen’, Trouw, January 27, 2026.
[6] van Rijs, A & Khalid, I 2024, ‘Nieuwe verplichtingen voor loontransparantie’, Juridisch up to date, no. 12, 2024-0205, pp. 8-12. < https://www.futd.nl/artikel/jutd/2024-0205/nieuwe-verplichtingen-voor-loontransparantie >