Amended Pay Transparency Implementation Bill: what is changing, and what does the delay mean for Dutch employers?

Delay in implementation

EU Member States must transpose the Directive by 7 June 2026. The Dutch government is aiming for entry into force on 1 January 2027. This creates an interim period in which the European Directive is in force, but Dutch implementing legislation is not. What does this mean for employers?

Private sector employers

For private sector employers, the impact during this interim period is limited. An EU directive has no horizontal direct effect. Employees cannot invoke the Directive directly against a private employer. This means, for example:

• Employees cannot enforce rights to pay information based solely on the Directive.
• No reporting obligations apply until Dutch implementing legislation enters into force.

(Semi-)public sector employers

The position differs for (semi-)public employers. Under certain conditions, employees may rely directly on provisions of the Directive, provided those provisions are sufficiently clear and unconditional.

Interpretation by courts

All employers should be aware that, from 7 June 2026, Dutch courts must interpret national law in line with the Directive. In equal pay litigation, the Directive may therefore influence how existing open norms are interpreted. It cannot create new obligations before national legislation takes effect, but it can shape the interpretation of current statutory standards.

The amended Pay Transparency Bill

Despite the delay, the Dutch legislator has continued to refine the proposal. The revised bill has been submitted to the Council of State for advice. You can find the Dutch version here.

Key amendments include the following:

1. Updated definition of “employer”

The earlier draft relied on the concept of “undertaking” from the Works Councils Act (WOR). This approach has been abandoned. The “employer” is now defined as the legal entity that has concluded the employment contract or public appointment with the employee. This aligns more closely with practice and reduces potential disputes within group structures.

2. Group-level reporting

The amended bill introduces the possibility of consolidated reporting at group level, provided certain conditions are met, for example, where remuneration policy is centrally determined. This may significantly reduce the administrative burden for large corporate groups.

3. The role of the works council

The role of the works council has been refined:

• The works council is consulted on the accuracy of the pay report, but management is responsible for formally confirming its accuracy.
• The right of consent regarding the remuneration system remains unchanged. Terminology has been aligned with the familiar wording of the Works Councils Act, referring again to the “remuneration or job evaluation system” rather than the newly introduced term “pay structures.”

4. Temporary agency workers

Employers must distinguish in their reporting between:

• their own employees; and
• temporary agency workers.

For agency workers, the employer relies on information received under the disclosure obligations of the WAADI.

5. Use of personal data

The bill clarifies how personal data may be processed in the context of pay transparency reporting, ensuring alignment with existing data protection requirements.

Preparing for 1 January 2027

Although Dutch implementation has been postponed and most employers will experience limited impact during the interim period, timely preparation remains important. Employers can already begin assessing what the new obligations will mean for their organisation as of 1 January 2027. This includes mapping the applicable requirements and developing a structured step-by-step plan to ensure compliance once the legislation enters into force.

Of course, we are happy to help you prepare, and we will keep you informed of developments. Those who subscribe to our newsletter stay up to date. If you have any questions about this new law, or other employment law matters, our Employment Law team is ready to help. Feel free to get in touch!