For years, the “salary” field on Dutch job descriptions has often been filled with the phrase “competitive” or “negotiable.” However, a major shift is coming. Under the new EU Pay Transparency Directive, companies in the Netherlands will soon be legally required to be much more open about what they pay. This directive aims to close the gender pay gap and ensure equal pay for equal work across the European Union. Here is a straightforward breakdown of what these changes mean for employers and job seekers.
Mandatory Salary Disclosure
One of the most significant changes is that employers must provide information about the starting salary or its range for a position. This information must be shared either in the job vacancy notice or prior to the first interview. The days of waiting until the final contract negotiation to discuss numbers are coming to an end.
A Ban on Salary History Questions
To prevent past pay inequalities from following a candidate to a new role, the new law prohibits employers from asking applicants about their previous salary history. This ensures that a candidate’s offer is based on the requirements of the new role and the market rate, rather than what they were paid in a previous, potentially lower-paying position.
Increased Reporting for Large Companies
The directive introduces stricter reporting requirements for larger organizations. Companies with more than 100 employees will be required to publish information on the pay gap between female and male workers. If a report reveals a gender pay gap of more than 5% that cannot be justified by objective, gender-neutral criteria, the company must take action through a joint pay assessment.
Transparency doesn’t stop once a contract is signed. Under the new rules, employees will have the right to request information from their employer on the average pay levels, broken down by gender, for categories of workers doing the same work or work of equal value.
Burden of Proof and Compensation
If a worker feels they have been a victim of pay discrimination, the burden of proof shifts from the employee to the employer.
It will be up to the company to prove that there was no discrimination. Furthermore, employees who have suffered pay discrimination will be entitled to full compensation.
When will this take effect?
The EU member states, including the Netherlands, have until June 2026 to “transpose” this directive into national law. While that may seem far off, the shift in recruitment culture is already beginning.
What does this mean for you?
For Employers
Now is the time to audit your current pay structures. Ensuring that your salary scales are clearly defined and gender-neutral will prevent legal and recruitment headaches when the law officially takes effect.
For Candidates
These changes provide more leverage and clarity, allowing you to make informed decisions about your career moves without the guesswork.
At Executive Mobility Group, we stay ahead of the regulations that impact the international workforce. If you have questions about how these upcoming changes might affect your recruitment or mobility strategy in the Netherlands, feel free to reach out to our team.
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