Wage Transparency Bill: Opinion of the Council of State
10-04-2026
On Tuesday, March 7, 2026, the Council of State published its opinion on the wage transparency bill. In it, the Council makes a number of comments and recommendations, advising the legislature to take these into account before the bill is submitted to the House of Representatives. Some of these comments are explained below.
What are the Council of State’s comments?
Greater attention to significant administrative burdens on employers
Although the Council of State endorses the importance of the bill, it also acknowledges that the bill has major consequences for employers, such as significant administrative burdens and regulatory pressure. These consequences must be given sufficient attention in the bill.
Implementation of wage reporting: by the government or the employer?
The Council of State notes that the option provided by the European directive to have wage reporting carried out by a government agency has been disregarded. This option reduces the burden on employers and promotes the comparability of data. The legislature has opted not to use this option because the data currently available (including from the Tax and Customs Administration) is insufficient to meet the obligations under the directive. The Council of State recommends providing a better explanation for why this option is not being used and further investigating whether it might still be possible (in the long term) to reduce the administrative burden on employers.
Recommendation: Submit the first wage report on June 7, 2027
The legislature previously announced that the implementation of the directive would be postponed until January 1, 2027, and as a result, employers with 150 or more employees will not be required to submit their first report until June 7, 2028. The Council of State advises the legislature to address the potential risks of delayed implementation for the State and affected parties in the explanatory memorandum to the bill and recommends amending the bill so that employers with 150 or more employees—in accordance with the directive—must submit their first report on June 7, 2027.
Clarification of the position of non-binary individuals
The explanatory memorandum to the bill merely states that it is not mandatory to include non-binary individuals in the reporting obligations. This creates uncertainty: may the compensation of non-binary individuals be completely disregarded, or must it be allocated to the category of men or women? The Council of State therefore advises the legislature to clarify whether, and if so how, employers must include the compensation of non-binary individuals in the information and reporting obligations.
Pay Transparency vs. Privacy
Finally, the Council of State notes that the explanatory memorandum to the bill does not clarify how information traceable to individuals will be protected against improper use. The Council of State recommends addressing the protection of personal data in greater detail and amending the bill if necessary.
Conclusion
It is likely that the legislature will amend the explanatory notes in certain areas. However, it is uncertain whether the bill itself will also be amended. For employers, this is no reason to postpone preparations. It is certain that the Pay Transparency Directive will be implemented in the Netherlands—likely on January 1, 2027.
