Thousands of Dutch companies will be required to report annually on pay differences between men and women in their workforces from 2027, but employers say the new rules are overly complex, the Financieele Dagblad reported on Monday.

The requirement stems from the EU’s Gender Pay Directive, introduced in 2023 to increase transparency and narrow the wage gap.

ABN Amro estimates that more than 2,000 private companies with at least 250 employees will have to publish annual figures, alongside large public employers such as government bodies, universities and hospitals, the paper said.

The Netherlands still has a gender pay gap of 10.5%, compared with the EU average of 12%, according to national statistics agency CBS, and Monday marks Equal Pay Day, the point at which men have already earned what women will earn by the end of the year.

Last year, men earned an average of €30.32 an hour and women €27.15, the CBS says. The pay gap is smallest in public administration and education and largest in the financial services sector.

However, women aged between 25 and 30 now earn a little more per hour on average than their male peers, and the pay gap between men and women in their 30s is marginal, the CBS said in April.

Draft legislation submitted to the lower house of parliament in March in line with the EU directive would require all organisations to make their pay structures more transparent.

All companies with more than 100 employees would have to publish the average pay gap and disclose the data publicly. Reporting will be annual for firms with 250 or more staff and every three years for those with between 100 and 250. Employers must act if the gap exceeds 5%.

Employer organisation VNO-NCW supports the aim of the law but calls the proposals “extremely complex” and demanding, the FD said. The government has already postponed the start date to 1 January 2027 to give employers more time to meet the requirements.

Trade union federation FNV, however, fears further delays. The union estimates that postponing the law could cost women between €1.9 billion and €3.8 billion per year, based on hourly wage differences and total working hours.