{"id":5737,"date":"2026-09-07T17:19:11","date_gmt":"2026-09-07T15:19:11","guid":{"rendered":"https:\/\/netprove.nl\/?p=5737"},"modified":"2026-09-07T17:19:13","modified_gmt":"2026-09-07T15:19:13","slug":"pay-transparency-act","status":"publish","type":"post","link":"https:\/\/netprove.nl\/en\/blog\/wet-loontransparantie-werkgever\/","title":{"rendered":"Pay Transparency Act: can your organisation explain every pay gap?"},"content":{"rendered":"<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong><span style=\"text-decoration: underline;\">In short<\/span><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The new pay transparency rules require more than just reporting. Employers must be able to explain how roles and salaries are determined.<\/li>\n\n\n\n<li>Greater openness does not automatically lead to more trust. Unclear or hard-to-explain differences can in fact raise questions and cause unrest.<\/li>\n\n\n\n<li>A reliable job architecture, clear salary criteria and well-prepared managers are therefore important prerequisites.<\/li>\n\n\n\n<li>Show salary data where differences exist. Employee research can additionally clarify whether employees understand the remuneration policy and experience it as fair.<\/li>\n<\/ul>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Anyone who thinks pay transparency is mainly about public salaries is missing a major part of the subject. The upcoming rules are not just about figures. Employers must also be able to explain clearly why a role falls into a specific band, how employees progress within that band, and when a pay gap is justified.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That does not only make pay transparency a legal or administrative issue. It is also an issue of trust. A salary band may be correct on paper, while employees do not understand the process behind it. Conversely, a difference may be easy to explain, yet still lead to unrest when managers tell different stories.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The central question for HR and management is therefore not only: are our data in order? Equally important is the question: can we explain our remuneration choices clearly and consistently?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is the current status of the pay transparency law?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The European Pay Transparency Directive should have been incorporated into Dutch legislation by 7 June 2026 at the latest. The Netherlands missed that deadline. At the beginning of September 2026, the legislative proposal is still before the House of Representatives. A note of amendment and a memorandum in response to the report were published on 1 September. The debate and vote have not yet been concluded. The government is aiming for introduction on 1 January 2027, but as long as the parliamentary process is ongoing, parts and dates may still change.<a href=\"https:\/\/www.tweedekamer.nl\/kamerstukken\/wetsvoorstellen\/detail?cfg=wetsvoorsteldetails&amp;qry=wetsvoorstel:36949\" rel=\"nofollow noopener\" target=\"_blank\">1<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Employers do not have to wait for the final legislation to prepare. Updating roles, salary criteria and HR data takes time. Works councils, managers and employees must also be carefully involved in the matter.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What changes for employers?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The aim of the European directive and the Dutch legislative proposal is clear: equal pay for equal or equivalent work must be easier to monitor and enforce. To this end, job applicants and employees will receive more information. Employers must better substantiate their remuneration policy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Under current plans, employers will face the following rules, amongst others:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Applicants must be given information about the starting salary or salary range before the salary negotiation. An employer may no longer ask about the current or previous salary.<\/li>\n\n\n\n<li>Employees must be able to find the criteria used to determine pay, pay levels and pay progression. These criteria must be objective and gender-neutral.<\/li>\n\n\n\n<li>Employees are permitted to request written information regarding their own remuneration level. They may also ask for the average remuneration level of men and women performing equal or equivalent work. The employer must provide this information within two months at the latest.<\/li>\n\n\n\n<li>Employers must use an objective and gender-neutral system for job evaluation and job classification. This looks at skills, effort, responsibility and working conditions, among other things.<a href=\"https:\/\/eur-lex.europa.eu\/eli\/dir\/2023\/970\/oj\" rel=\"nofollow noopener\" target=\"_blank\">2<\/a><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The reporting obligation depends on the size of the organisation. According to the current Dutch proposal, employers with at least 150 employees must report for the first time by 7 June 2028 at the latest. That report will cover the 2027 calendar year. Employers with 100 to 150 employees will follow by 7 June 2031 at the latest.<a href=\"https:\/\/www.rijksoverheid.nl\/actueel\/nieuws\/2026\/05\/21\/meer-openheid-over-loonkloof-tussen-mannen-en-vrouwen\" rel=\"nofollow noopener\" target=\"_blank\">3<\/a> When determining the number of employees, agency workers and other hired labour also count according to the proposal.<a href=\"https:\/\/www.rijksoverheid.nl\/themas\/werk\/gelijke-behandeling-op-het-werk\/plannen-kabinet-meer-openheid-over-loonkloof-tussen-mannen-en-vrouwen\" rel=\"nofollow noopener\" target=\"_blank\">4<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If a report shows an average pay gap of 5 per cent or more within a category of employees, the employer must assess whether there are objective and gender-neutral reasons for this. If the pay gap is not justified and has not been resolved within six months, a pay review must be carried out in consultation with the employees\u2019 representatives. This review will examine the causes and possible solutions.<a href=\"https:\/\/www.rijksoverheid.nl\/themas\/werk\/gelijke-behandeling-op-het-werk\/plannen-kabinet-meer-openheid-over-loonkloof-tussen-mannen-en-vrouwen\" rel=\"nofollow noopener\" target=\"_blank\">4<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The schedule is still subject to discussion. The European Directive sets a first reporting date of 2027 for organisations with 150 employees or more. The Council of State has pointed out that the proposed Dutch date deviates from this.<a href=\"https:\/\/www.tweedekamer.nl\/kamerstukken\/detail?did=2026D24015&amp;id=2026Z10622\" rel=\"nofollow noopener\" target=\"_blank\">5<\/a> It is therefore wise to continue monitoring the progress of the bill.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Will all salaries soon be made public?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">No. The directive does not oblige employers to publish a public list of individual salaries. The emphasis is on salary bands, remuneration criteria and average remuneration levels for groups doing equal work or work of equal value. For larger employers, this is accompanied by reporting on the gender pay gap.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Privacy remains important in this regard. In small groups, averages can sometimes still be traced back to a single individual. HR must therefore determine in advance how information can be shared without unnecessarily revealing personal data.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Nor do the new rules mean that every pay gap is banned. Differences can be justified, for example by relevant experience, demonstrable performance or extra responsibility. The employer must, however, be able to demonstrate that the same objective and gender-neutral criteria are applied consistently.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Pay differentials are not the same as pay discrimination<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In Dutch business life, the average hourly wage for women in 2024 was, according to Statistics Netherlands (CBS), 14.5 per cent lower than that for men. When account is taken of differences in the characteristics of employees, jobs and employers, a difference of 6.1 per cent remains. In the public sector, the differences amounted to 4.5 and 1.7 per cent respectively.<a href=\"https:\/\/www.cbs.nl\/nl-nl\/longread\/aanvullende-statistische-diensten\/2025\/monitor-loonverschillen-mannen-en-vrouwen-2024\/1-loonverschillen-tussen-mannen-en-vrouwen\" rel=\"nofollow noopener\" target=\"_blank\">6<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These figures call for careful explanation. An average pay gap is not automatically proof that two people are paid unequally for the same work. Nor does a statistically adjusted difference directly prove that discrimination is taking place. At the same time, a statistical correction does not mean that every difference within an organisation is justified. That can only be assessed by investigating jobs, criteria and decisions within that organisation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For employers, this presents a significant communication risk. A general figure regarding the gender pay gap can easily be mistaken for a judgment on individual salaries. HR must therefore clearly explain what a figure does and does not say.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Does pay transparency lead to more trust?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Scientific research does not provide a simple yes or no. Economist Zo\u00eb Cullen distinguishes between three forms of transparency: information about colleagues with similar work, information about growth between job levels, and information about differences between employers. An overview of existing research shows that transparency can reduce wage differentials and improve the position of employees in the labour market. At the same time, openness can lead to more comparison between colleagues and lower average wage growth.<a href=\"https:\/\/doi.org\/10.1257\/jep.38.1.153\" rel=\"nofollow noopener\" target=\"_blank\">7<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Research into a Danish reporting obligation shows this dual outcome. Among the companies studied, the gender pay gap narrowed by about two percentage points. That was a decrease of approximately 13 percent compared to the previous difference. The decline was mainly due to men's wages growing less quickly. The researchers also found lower average wage growth and productivity, but no clear effect on profits.<a href=\"https:\/\/doi.org\/10.1111\/jofi.13136\" rel=\"nofollow noopener\" target=\"_blank\">8<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The results are relevant, but cannot be directly applied to every Dutch organisation. It involved Danish companies around a specific threshold for the number of employees. The economic situation, labour market and structure of remuneration policy can differ per country and organisation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Explanation of the process is at least as important<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Employees do not just want to know how much they earn. They also want to understand how the amount is arrived at. This is called procedural transparency: openness about the rules and considerations behind compensation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A study of 4,652 employees in 127 teams across twenty Northern European organisations found a link between procedural transparency and a stronger development-oriented work climate. Through that work climate, there was also an indirect link with lower turnover intention and better self-reported task performance.<a href=\"https:\/\/doi.org\/10.1177\/08863687231216135\" rel=\"nofollow noopener\" target=\"_blank\">9<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This requires nuance. The research does not prove that more explanation automatically leads to lower actual staff turnover. The researchers primarily measured experiences and intentions. Another study among 299 employees across four South African organisations found only a weak direct relationship between pay transparency and turnover intention. Organisational context, perceived support and perceived fairness proved to be more important.<a href=\"https:\/\/doi.org\/10.1108\/ER-02-2022-0077\" rel=\"nofollow noopener\" target=\"_blank\">10<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Moreover, openness can lead to disappointment. Field and experimental research shows that employees can become more dissatisfied when their actual position in the salary distribution is lower than they had expected. Social comparison and envy can play a role in this.<a href=\"https:\/\/doi.org\/10.1002\/job.2575\" rel=\"nofollow noopener\" target=\"_blank\">11<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The practical lesson is clear: do not share amounts first and only look for an explanation afterwards. Without a clear job classification structure, fixed criteria and well-prepared managers, more information is generated, but not automatically more understanding.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How can HR prepare for pay transparency?<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">1. Update roles and the grading structure<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Start with the work that people actually perform. Different job titles may relate to equivalent work. Conversely, the same title may encompass roles that differ from one another in responsibility or weight. Therefore, check whether job descriptions are up to date and whether evaluation criteria are applied consistently throughout.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Investigate exceptions<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Do not look only at the official salary scales. Also map out individual agreements, labour market allowances, extra periodic increments and other exceptions. Check whether there is a recorded reason for these and whether comparable cases have been treated in the same way.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Check the quality of HR data<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Reporting becomes difficult when job titles, hours, variable remuneration or organisational structures are not recorded consistently. Therefore, perform a test analysis in good time. This will reveal missing data and illogical classifications before an employee or regulator asks for an explanation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Test whether managers can explain the policy<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Ask several managers individually how an employee progresses within a pay band. Large discrepancies between their answers are a warning sign. Managers need to know what criteria apply, how much discretion they have, and how they can answer questions without sharing information about colleagues.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Measure employee experience as well<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Salary data makes differences visible, but doesn't tell how employees experience the process. A <a href=\"https:\/\/netprove.nl\/en\/investigations\/employee-survey\/\" data-type=\"page\" data-id=\"319\">employee survey<\/a> can for example provide insight into the clarity of salary criteria, perceived fairness, trust in decisions and the opportunity to ask questions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Be cautious with small groups in this regard. A combination of team, job title, gender and remuneration questions can put anonymity under pressure. In a general questionnaire, it is preferable not to ask for exact salaries when that data is already in the records. Combine anonymised experiences with a separate analysis of salary and job data.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">6. Record what happens with signals<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Transparency raises new questions. Therefore, determine in advance where employees can go, who will investigate a difference and when someone will receive a substantive answer. Feedback is important. Without visible follow-up, gathering feedback can actually reinforce doubts about the process.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Pay transparency as a test of governance quality<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The pay transparency legislation calls for systems, data and reports. Yet the most difficult task probably lies in the explanation. Employers must demonstrate that comparable work is assessed according to the same principles and that deviations have not arisen by chance or arbitrarily.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That does not mean that every pay gap has to disappear. It does mean that every relevant difference needs a verifiable reason. Organisations that are currently examining their job grading structure, data and communication are therefore not only preparing for new rules. They are also testing the quality of their employment practices.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A good approach brings together three types of information: statutory requirements, salary and job data, and employee experiences. Only when these three align can pay transparency contribute to policy that is not only legally defensible, but also understandable and credible.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Sources<\/h2>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.tweedekamer.nl\/kamerstukken\/wetsvoorstellen\/detail?cfg=wetsvoorsteldetails&amp;qry=wetsvoorstel:36949\" rel=\"nofollow noopener\" target=\"_blank\">House of Representatives \u2013 Act implementing the Pay Transparency Directive, bill 36 949<\/a>.<\/li>\n\n\n\n<li><a href=\"https:\/\/eur-lex.europa.eu\/eli\/dir\/2023\/970\/oj\" rel=\"nofollow noopener\" target=\"_blank\">European Parliament and Council of the European Union (2023) \u2013 Directive (EU) 2023\/970<\/a>.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.rijksoverheid.nl\/actueel\/nieuws\/2026\/05\/21\/meer-openheid-over-loonkloof-tussen-mannen-en-vrouwen\" rel=\"nofollow noopener\" target=\"_blank\">Government of the Netherlands (2026) \u2013 Greater transparency on the gender pay gap<\/a>.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.rijksoverheid.nl\/themas\/werk\/gelijke-behandeling-op-het-werk\/plannen-kabinet-meer-openheid-over-loonkloof-tussen-mannen-en-vrouwen\" rel=\"nofollow noopener\" target=\"_blank\">Dutch Government (2026) \u2013 Cabinet plans: more transparency on the gender pay gap<\/a>.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.tweedekamer.nl\/kamerstukken\/detail?did=2026D24015&amp;id=2026Z10622\" rel=\"nofollow noopener\" target=\"_blank\">Advisory Division of the Council of State (2026) \u2013 Advice and further report on bill 36 949<\/a>.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.cbs.nl\/nl-nl\/longread\/aanvullende-statistische-diensten\/2025\/monitor-loonverschillen-mannen-en-vrouwen-2024\/1-loonverschillen-tussen-mannen-en-vrouwen\" rel=\"nofollow noopener\" target=\"_blank\">CBS (2025) \u2013 Gender Pay Gap Monitor, 2024<\/a>.<\/li>\n\n\n\n<li><a href=\"https:\/\/doi.org\/10.1257\/jep.38.1.153\" rel=\"nofollow noopener\" target=\"_blank\">Cullen, Z.B. (2024) \u2013 Is Pay Transparency Good?<\/a>, <em>Journal of Economic Perspectives, 38<\/em>(1), 153\u2013180.<\/li>\n\n\n\n<li><a href=\"https:\/\/doi.org\/10.1111\/jofi.13136\" rel=\"nofollow noopener\" target=\"_blank\">Bennedsen, M., Simintzi, E., Tsoutsoura, M. &amp; Wolfenzon, D. (2022) \u2013 Do Firms Respond to Gender Pay Gap Transparency?<\/a>, <em>The Journal of Finance, 77<\/em>(4), 2051\u20132091.<\/li>\n\n\n\n<li><a href=\"https:\/\/doi.org\/10.1177\/08863687231216135\" rel=\"nofollow noopener\" target=\"_blank\">Tenhi\u00e4l\u00e4, A., Chung, D.J. &amp; Park, T.-Y. (2024) \u2013 Procedural Pay Transparency, Motivational Climate, and Employee Outcomes<\/a>, <em>Remuneration &amp; Benefits Review, 56<\/em>(2).<\/li>\n\n\n\n<li><a href=\"https:\/\/doi.org\/10.1108\/ER-02-2022-0077\" rel=\"nofollow noopener\" target=\"_blank\">Stofberg, R., Bussin, M. &amp; Mabaso, C.M. (2022) \u2013 Pay transparency, job turnover intentions and the mediating role of perceived organisational support and organisational justice<\/a>, <em>Employee Relations, 44<\/em>(7), 162\u2013182.<\/li>\n\n\n\n<li><a href=\"https:\/\/doi.org\/10.1002\/job.2575\" rel=\"nofollow noopener\" target=\"_blank\">Schnaufer, K., Christandl, F., Berger, S., Meynhardt, T. &amp; Gollwitzer, M. (2022) \u2013 The shift to pay transparency: Undermet pay standing expectations and consequences<\/a>, <em>Journal of Organizational Behavior, 43<\/em>(1), 69\u201390.<\/li>\n<\/ol>","protected":false},"excerpt":{"rendered":"<p>Wie bij loontransparantie vooral denkt aan openbare salarissen, mist een belangrijk deel van het onderwerp. De komende regels draaien niet alleen om bedragen. Werkgevers moeten ook duidelijk kunnen maken waarom een functie in een bepaalde schaal valt, hoe medewerkers binnen die schaal groeien en wanneer een loonverschil gerechtvaardigd is. Dat maakt loontransparantie niet alleen een<a class=\"excerpt-read-more\" href=\"https:\/\/netprove.nl\/en\/blog\/wet-loontransparantie-werkgever\/\" title=\"Lees meerWet loontransparantie: kan jouw organisatie elk loonverschil uitleggen?\">... Read more \"<\/a><\/p>","protected":false},"author":2,"featured_media":5753,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5737","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-geen-onderdeel-van-een-categorie"],"acf":[],"_links":{"self":[{"href":"https:\/\/netprove.nl\/en\/wp-json\/wp\/v2\/posts\/5737","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/netprove.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/netprove.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/netprove.nl\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/netprove.nl\/en\/wp-json\/wp\/v2\/comments?post=5737"}],"version-history":[{"count":6,"href":"https:\/\/netprove.nl\/en\/wp-json\/wp\/v2\/posts\/5737\/revisions"}],"predecessor-version":[{"id":5743,"href":"https:\/\/netprove.nl\/en\/wp-json\/wp\/v2\/posts\/5737\/revisions\/5743"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/netprove.nl\/en\/wp-json\/wp\/v2\/media\/5753"}],"wp:attachment":[{"href":"https:\/\/netprove.nl\/en\/wp-json\/wp\/v2\/media?parent=5737"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/netprove.nl\/en\/wp-json\/wp\/v2\/categories?post=5737"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/netprove.nl\/en\/wp-json\/wp\/v2\/tags?post=5737"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}