The Dutch law implementing the European Pay Transparency Directive (the “Directive”) is working its way through the legislative process. Once passed, as drafted, it will take effect on January 1, 2027. Employers will then face new obligations regarding equal pay, pay transparency, and—just as important—the justification of their remuneration policies.
To support employers in this regard, the Verwey-Jonker Institute has published a practical guide on establishing an objective and gender-neutral pay structure (the “Guide”).
Although the Guide does not have legal status, it does provide an initial specific indication of what will shortly be expected of Dutch employers.
1. Start with a critical job analysis
An objective pay structure starts with clear job descriptions. In practice, jobs often evolve over time or are inadequately defined. As a result, important tasks or responsibilities may have been overlooked, and jobs may have been incorrectly evaluated.
Employers would therefore be wise to verify whether all job descriptions (still) align with actual duties.
2. Review the job evaluation
According to the Guide, jobs can be evaluated in three ways:
Regardless of which method is chosen, the evaluation must be based on at least four objective criteria: skills, effort, responsibility, and working conditions.
A periodic...
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