Pay Transparency Directive - employer obligations in 2026

In 2026, companies operating in the European Union labour market will begin working under new rules on pay transparency and equal pay. This refers to EU Directive 2023/970, commonly known as the Pay Transparency Directive. Its aim is to reduce pay inequalities between women and men and increase oversight of how pay is determined within companies.

The new regulations will also be important for Polish employment agencies, companies posting workers to the Netherlands and businesses employing migrant workers. In practice, this means more documentation duties, the need to analyse pay structures and greater responsibility for how recruitment and pay rates are set.

What is the Pay Transparency Directive?

Directive 2023/970 of the European Parliament and of the Council of the European Union was adopted in May 2023. Member States have until 7 June 2026 to transpose it into national law.

The new rules are intended to improve enforcement of the principle of equal pay for the same work or work of equal value. They build on Article 157 of the Treaty on the Functioning of the European Union and earlier regulations on equal treatment of workers.

The Directive introduces specific obligations for employers, including:

• greater pay transparency during recruitment,
• the obligation to report on the gender pay gap,
• employees’ right to information about pay,
• the need to use gender-neutral pay criteria,
• easier ways for employees to pursue claims.

For many companies, this will be the biggest change in pay policy for years.

What will change during recruitment?

One of the most important changes is the requirement for greater transparency already at the job advert and interview stage.

The employer will have to provide the candidate with information about:

• the proposed salary or pay range,
• the rules for determining pay,
• any allowances and bonuses.

The Directive also prohibits asking candidates about their previous pay history. The aim is to limit situations where a lower salary in a previous job affects an employee’s future rate.

For employment agencies, this means the need to prepare job offers more carefully and ensure greater consistency between communication and the actual working conditions.

Gender pay gap reporting - which companies will be covered by the new rules?

The Directive introduces an obligation to report pay differences between women and men.

The scope of the obligations depends on the size of the company:

• companies with more than 250 employees will report data every year,
• companies with 150 to 249 employees will report every three years,
• from 2031, the obligation will also apply to companies with 100 to 149 employees.

The report must cover, among other things:

• average pay differences,
• differences in bonuses and allowances,
• data on promotions,
• a breakdown by gender and job category.

If the pay gap exceeds 5% and cannot be justified by objective criteria, the employer will be required to carry out a joint pay assessment together with employee representatives.

Why are the rules important for employment agencies and companies employing migrants?

The temporary work and worker posting sector falls within a particularly sensitive area of the new regulations. This applies especially to companies operating between Poland and the Netherlands, Germany or Belgium.

Migrant workers often:

• do not know the local pay rules,
• have limited access to information,
• work through subcontractors or agencies,
• perform the same work as local employees, but under different conditions.

The Directive is intended to reduce such situations. Companies will have to document more clearly how pay is determined and demonstrate that pay differences are based on objective criteria, rather than nationality or gender.

In practice, this may mean greater scrutiny of:

• bonus systems,
• shift allowances,
• hourly rates,
• job classification,
• promotion policy.

What rights will employees gain?

The Directive strengthens the position of employees in pay-related disputes.

Once the rules come into force, an employee will have the right to obtain information about:

• their own pay level,
• average pay levels for people doing similar work,
• the criteria used to determine pay and promotions.

The information must be provided in a clear and understandable way. An employer will not be allowed to prohibit an employee from disclosing their own pay.

This is an important change for sectors where rates have so far been set individually and with little transparency.

Does the Directive mean all salaries must be published?

No. The Directive does not require companies to publish a full list of all employees’ salaries.

The aim of the new rules is primarily to:

• increase transparency within pay systems,
• make it possible to identify inequalities,
• improve enforcement of the principle of equal pay.

Companies will still be able to protect personal data and confidential business information. At the same time, they will need to prepare for significantly greater scrutiny of their pay processes.

Pay transparency and workplace safety

Although the Directive is mainly about pay, in practice more and more companies are linking transparency with a broader approach to employer responsibility. This also includes workplace safety and employee qualifications.

In technical, manufacturing and construction sectors, certificates and training have a direct impact on pay levels. Companies are increasingly creating clear pay systems linked to:

• experience,
• qualifications,
• level of responsibility,
• completed health and safety training.

This is particularly visible in the Netherlands, where the VCA certificate is a standard requirement in many industrial and construction sectors.

Companies will need to document their processes more effectively

The Pay Transparency Directive clearly shows the direction of change in the European labour market. Transparent employment conditions, employee safety and clear pay criteria are becoming increasingly important.

For employment agencies and companies employing migrant workers, this means the need to organise processes now - before the new rules come into force. The earlier a business prepares its procedures and trains its team, the easier it will be to adapt to the new requirements.

Prepare your employees and teams properly

If your company operates in the technical, industrial or construction sector, it is worth making sure now that your employees have the right qualifications. Clear safety standards and well-documented training are increasingly becoming part of professional team management.

Check the VCA courses for companies and groups of employees and prepare your team to work in line with the requirements of the Dutch market. Bonapi organises training for individual employees, groups and employment agencies.

Follow the Bonapi blog and the company’s social media profiles to stay up to date with changes in regulations concerning work in the Netherlands and the European Union.