Amended Wage Transparency Bill Submitted to the House of Representatives
04-06-2026
On May 21, 2026, the legislature submitted the Pay Transparency Bill to the House of Representatives. The bill and the accompanying explanatory memorandum have been amended in certain respects, in part in response to the advice of the Council of State, which we previously discussed in a Legal Update. In this Legal Update, we discuss the changes the legislature has implemented following the advice of the Council of State.
Amended Bill
1. Further Explanation Regarding Significant Administrative Burdens on Employers
The amended explanatory memorandum to the bill provides further clarification on why the proposed measures and the resulting administrative burdens are necessary to better ensure the right to equal pay. In the implementation phase, efforts are being made to find ways to further reduce the administrative burden on employers.
2. Wage reporting to be carried out by employers rather than the government
The legislature is sticking to its decision to have wage reporting carried out by employers rather than the government, even though the directive does provide for that option.
3. The intended effective date remains January 1, 2027, and the first wage report is due on June 7, 2028
The bill maintains the deferred implementation of the directive, no later than January 1, 2027. Employers with 150 or more employees must report for the first time no later than June 7, 2028, covering the year 2027. This reporting date is one year later than prescribed by the directive, and thus the legislature is not following the advice of the Council of State. The explanatory memorandum to the bill now also discusses the potential risks of delayed implementation.
4. Clarification of the status of non-binary individuals
The explanatory notes to the bill provide greater clarity regarding the status of non-binary individuals. Non-binary individuals are not included in the pay reporting, unless a non-binary individual wishes to be counted as a man or a woman. Non-binary individuals are included in the calculation of the organization’s size, which is relevant for determining the employer’s obligations under the pay transparency legislation.
5. Additional Safeguard for Privacy
A provision has been added to the bill to protect information traceable to individuals against improper use. The bill explicitly states that an employer may require employees to use the information obtained solely for the purpose of applying the principle of equal pay.
Conclusion
It is now up to the House of Representatives to vote on the amended bill. It is certain that the Pay Transparency Directive will be implemented in the Netherlands. If the Senate also approves the bill after the House of Representatives, the legislation can take effect on January 1, 2027. No major changes are expected, so the bill provides employers with a sufficient basis to prepare this year.
