Gender Pay Transparency Directive: Next steps in the legislative implementation process

At a glance

• As part of the legislative process, the draft bill implementing the EU Gender Pay Transparency Directive (Directive) has now been submitted to the Council of State.
• On 1 April 2026, the Council of State issued its advice on the draft bill.
• The bill will now proceed to the House of Representatives and the Senate, and they will assess the advice of the Council of State.

The Council of State has issued its advice on the draft bill implementing the Directive. While it supports the objective of reducing the gender pay gap, it warns that the proposed measures will have significant consequences for employers and stresses that expectations of the legislation’s impact should be realistic.

In summary, the Council of State raises the following key points:

• While supporting the aim of reducing the gender pay gap and the choice for minimum implementation of the Directive, the Council of State notes that the proposed transparency and reporting obligations will have substantial administrative and practical consequences for employers, which are insufficiently recognised and assessed. In particular, it considers that the government has not adequately explained why it does not use the Directive’s option to have pay reports largely prepared by a national authority, even though this could reduce employer burden and increase comparability of the information.
• The Directive must be implemented by 7 June 2026, whereas the draft bill aims for entry into force on 1 January 2027. The Council of State advises that the explanatory memorandum should address the risks of late implementation.
• The draft bill allows employers with 150+ employees to submit their first pay report in 2028, whereas the Directive requires this by 7 June 2027. This deviation is not allowed, and the Council of State therefore advises that the reporting deadline in the Directive is adhered to.
• The draft bill lacks clarity on how employers should deal with non‑binary employees in pay comparisons and reporting. The Council of State advises that the explanatory notes should go into more detail regarding whether, and if so how, employers are required to take the remuneration of non-binary employees into account when complying with the obligations under the draft bill.
• The Council of State notes that there is a tension between pay transparency and the obligations under the General Data Protection Regulation (protection of personal data). As the option to grant access to identifiable pay data only to employee representatives, the Labour Inspectorate or the equality body (rather than to individual employees) has not been chosen, it is all the more desirable that the explanatory memorandum further addresses how the recipient’s use of information which can be traced back to individuals, can be limited to the exercise of the right to equal pay.