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EU Regulations Wage Transparency

Prepare for EU directives for pay transparency.

New directives were adopted in 2023 to combat the gender pay gap. EU countries must enact these directives into law by 2027. The Netherlands aims to implement the legislation and enforcement by Jan. 1, 2027. This directive is designed to promote transparency and force companies to take responsibility for equal pay.

Organizations that start now will soon not only be ahead of legislation, they are building trust and credibility. A fair playground. And that’s what this should be about. Want to know what your organization is facing? And what to do now? Then read on to this page.

Irene Oerlemans

Partner Bunchmark

I would be happy to tell you everything you need to know about the EU directives and what you need to do now for your organization in a 30-minute non-binding consultation! Or call me on 0031 6 22 46 01 45 .

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Wage Transparency Act

What to expect

The EU directive aims to promote transparency within pay. The package of rights for employees and obligations for employers can be divided into 3 phases. View our brochure or scroll down.

Phase 1

Recruitment of new employees

  • Job titles and job postings should be gender neutral.
  • A salary range should be given.
  • During application, an employer may not ask about previous salary.
  • Overall, the recruitment process must be "non-discriminatory.
  • And the Works Council has the right of consent on recruitment policies.
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Phase 2

For employees

  • Right to an understanding of the criteria used to determine pay, pay levels and pay trends: so employees gain their own understanding.
  • And right to see individual salary levels and the average salary level by category of employees (with the same or equivalent roles), broken down by gender.
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Phase 3

As an employer, you are required to

  • Provide employees with appropriate information and, in addition, regularly proactively inform them of their rights.
  • Conduct external, objective analysis of pay structure: the pay gap equation.
  • In addition to conducting the analysis, there is an obligation for employers of 100+ employees or more to be transparent about the results. They will have a publication requirement where they must make the pay gap report public.
  • Organizations of 250+ employees should do this annually
  • Organizations between 150 and 250 employees triennially
  • Organizations between 100 and 150 employees triennially
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Recognizable?

eu pay transparency directive

Check here if your organization is ready for the EU pay transparency legislation.

Based on expected Dutch guidelines, it is essential for every organization to keep track of wage data. Many organizations think they don’t have a wage gap. But you will have to prove and report it in the future. It is also wise to scrutinize your application process; how do you describe job openings and what questions do you ask during an interview? Below is a fact sheet with a checklist at the bottom. Use it to identify pain points and set processes in motion. Get help where you lack expertise.

Checklist

  • Our job posting texts and titles are gender neutral
  • We always indicate a range regarding starting salary in job postings.
  • We never ask about previous salary during a job interview.
  • We can make all the wage gap calculations expected of us by law.
  • We can give our employees insight into criteria used to determine pay, pay levels and pay trends.
  • We can give our employees insight into specific info on individual salary levels and the average salary level by category of employees (same or equivalent work), broken down by gender.
  • Your compensation policy is nowhere on paper and is explained differently for everyone.
  • We inform our employees of the above rights each year.
Job Evaluation

The Job Matrix: the basis for proper reporting.

A job matrix is the structure of your organization, in which roles are clustered and classified according to complexity. This ensures consistency and fairness. It shows how, for example, the role of sales manager relates to that of a controller within your company. The job home is the basis for salary scales, remuneration components and thus also the basis for the mandatory reporting on wage transparency.

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"Bunchmark asked us the right questions throughout the process. Of course frameworks of the project are kept, but they also dare to ask questions about our decisions or things just outside this framework. That just added value".

Rob van Nuenen

CEO Channable

Pay transparency

Get help in time.

Calculating any wage gap is a technical matter. Moreover, it takes time. Not only the calculations, but also taking effective action. It is critical for any organization to get started now and be ready for the new legislation in early 2027. Organizations with clear job descriptions and salary scales often already have the basic information to make these calculations. Still, in all cases it is recommended that a professional be involved here.  

Irene Oerlemans

Partner Bunchmark

I would be happy to tell you everything you need to know about the EU directives and what you need to do now for your organization in a 30-minute non-binding consultation! Or call me on 0031 6 22 46 01 45 .

"*" indicates required fields

This field is for validation purposes and should be left unchanged.
*
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