New legislation on pay transparency is expected to take effect in the Netherlands on January 1, 2027. Employers will soon have to be better able to substantiate how pay is arrived at within the organization and demonstrate that there is equal pay for equal or equivalent work.
For many organizations, this affects not only remuneration policy, but also job evaluation, HR processes, recruitment and selection, and internal communication.
At the same time, many employers find that remuneration structures have grown over the years and are not always fully transparent or consistently recorded. This is precisely why preparing for pay transparency requires time, analysis and a careful approach.
What does wage transparency mean for employers?
The new regulations require employers to, among other things:
- greater understanding of reward structures;
- objective and gender-neutral criteria for pay;
- transparency towards employees and applicants;
- and attention to possible pay differences within the organization.
Larger organizations may additionally be subject to additional reporting requirements.
Timely preparation is important
Although the legislation has not yet been finalized, it is clear that organizations must prepare for new obligations around equal pay and pay transparency in the coming period.
Precisely because pay structures, job evaluation and HR processes have often grown historically, it takes time to properly identify potential areas of concern.
Practical roadmap to wage transparency
To support organizations in this, we have developed a practical and structured step-by-step plan. The step-by-step plan provides insight into the main points of attention, risks and follow-up steps surrounding wage transparency.
Among other things, this includes:
- job evaluation;
- remuneration policy;
- HR processes;
- internal communication;
- and preparation for future laws and regulations.
Want to Know more?
Do you want to know what the new wage transparency legislation means for your organization? The employment lawyers at Wessel Van der Lans Advocaten are happy to think along with you about practical preparation and an appropriate approach.
