The good news: last year, Equal Pay Day was 10 days earlier, and at its inception 15 years ago, the day fell in October. But the problem still exists. Even when you correct the wage gap for experience, sector, or position, there remains a difference of about 7%. What causes this difference?
Why does Equal Pay Day still exist?
Firstly, women more often work in sectors with lower pay, such as healthcare or education. This explains part of the difference, but the corrected difference mentioned above still stands. Women also more often work part-time according to research, and the person with the lowest salary often stays home after the birth of a child – and that is usually women. According to Martine Hardeveld Kleuver, this also starts a downward spiral: less working hours means fewer promotion opportunities and thus less pay.
Despite the fact that there has been a law requiring equal pay since 1975, this is still not always the case. This is mainly due to a lack of transparency; no one has to disclose how much he/she earns, and employers do not have to disclose what others earn. Starting next year, there may be a change in this, when the Wage Transparency Act comes into effect. With this law, wages must become more transparent, which makes sense. The downside? Dutch companies seem not to be fully prepared for this yet.
The tide does seem to be turning. Companies that systematically pay women less than men risk losing talent: they lose female talent, make themselves less attractive as employers, and miss out on the diversity that improves innovation and decision-making. Diverse perspectives would lead to increased innovation and ultimately more profit.
This is how you close the wage gap
Closing the wage gap is increasingly becoming an obligation due to new legislation, if it wasn’t already a moral one. How can you as an entrepreneur ensure more equality in your workplace? Here are five steps to start with now.
1. Start with a baseline measurement
Conduct an internal scan: how big is the current difference in pay between men and women within the same job categories? Focus this on all forms of compensation (base salary, bonus, secondary benefits). Organizations that are ahead are already reporting on this.
2. Build a transparent job structure
Develop or update a 'job structure' in which jobs are valued based on objective criteria (knowledge, experience, responsibility) and attach clear salary ranges to it. During recruitment and career development, this ensures that women and men receive equal starting values.
3. Communicate openly about compensation
Include the salary or salary range in job postings, normalize discussions about wages in the workplace, and ensure that employees know in advance what happens and what the criteria are for promotions, extra bonuses, and career development. Note: do not make it too open. For example, do not ask applicants to share their previous salary, as this prevents the wage gap from propagating between companies.
4. Create an action plan for discrepancies
Back to the baseline measurement - if it shows discrepancies, it is important to take action. With an action plan, you allocate a correction budget, ensure that monitoring is done regularly, and can make adjustments in career paths. Document this in a report and communicate why discrepancies exist and how they will be addressed.
5. Integrate pay equality into HR policy
Make equal pay part of the employer brand, the diversity and inclusion policy, and the growth strategy. Document how the policy contributes to talent retention, innovation capacity, and profit. For example, focus on female leaders, make part-time careers more attractive, and prevent caregiving responsibilities from leading to automatic income loss.
On to December 31
The date of Equal Pay Day calls for reflection every year. But real change happens in the workplace, in every organization. Don’t wait for the formal implementation of rules in 2026–2027; start today by getting the basics in order. This way, you prevent your company from lagging behind and become the organization that attracts, retains, and utilizes talent. Because let’s face it: why would you block your own growth potential?
