The European directive on pay transparency (EUPTD) requires employers to be more open about salaries and remuneration structures. The core of the law consists of three pillars:
 
- Pay transparency in recruitment: job seekers must gain insight into the salary or salary range of a position before they apply.
- Insight into remuneration structures: employers must be able to objectively explain pay differences and make job evaluations transparent.
- Mandatory reporting on the gender pay gap: companies with more than 250 employees must regularly report on pay differences between men and women.
If the report shows that there is an unjustified difference of more than 5%, the organization must conduct a joint pay assessment with employee representatives.
EU member states must incorporate the directive into national legislation by January 1, 2027, at the latest. Large employers will report for the first time in June 2027.
The current situation in the Netherlands
According to the Highberg research, 55% of HR professionals are well acquainted with the pay transparency directive, but implementation is still lagging. 80% of organizations have now drawn up an action plan, but of that group, less than one-third has already started implementation. 47% are still preparing, and the rest's plans are gathering dust.
Despite the high level of awareness, companies assess themselves as fully compliant with only 21% of the provisions. In particular, the articles on reporting and transparent communication (articles 7, 8, and 9) are proving complex.
The concerns are understandable: organizations fear reputational damage (68%) and legal risks (64%) in case of non-compliance. At the same time, 72% of companies see the directive as an opportunity to increase internal trust and stimulate cultural change.
Action plan: how to prepare your organization
It may seem far away, but as always, time flies, especially for entrepreneurs. Therefore, it is wise
1. Map current pay structures
Start with an inventory of existing salaries, remuneration components, and discrepancies. This forms the basis for all subsequent steps.
2. Conduct a gender pay gap analysis
Use objective data to identify any pay differences between male and female employees. Also document the causes of any discrepancies. And yes, they are more than likely also in the Netherlands.
3. Develop a transparent job evaluation
Clearly describe the criteria on which jobs are classified. Avoid subjective factors such as negotiation skills or historical salary.
4. Create a communication plan
Transparency requires careful internal communication. Inform employees about how rewards are determined and what the organization is doing to promote equality.
5. Build a reporting structure
Develop tools or dashboards that allow for periodic reporting on pay differences, trends, and areas for improvement.
6. Involve employee representatives
The directive prescribes joint pay assessments. Therefore, collaborate early with works councils or trade unions to create support.
7. Test and evaluate
Conduct internal audits or simulations before the legal deadline. This allows sufficient time to refine and improve processes.
Pay transparency: from obligation to value
The new rules require not only administrative adjustments but especially a cultural shift. Organizations that embrace transparency increase their credibility, attract talent, and strengthen internal trust. At Highberg, they say: 'You can see it as an obligation, but also as a catalyst for positive change.' At baaz, we prefer to see the glass as half full as well.
