Equal pay under Dutch law
The principle of equal pay for equal work (gelijk loon voor gelijk werk) is a fundamental rule of Dutch employment law. The Dutch Equal Treatment Act (Algemene wet gelijke behandeling, AWGB) and the Equal Treatment of Men and Women Act (Wet gelijke behandeling van mannen en vrouwen, WGB m/v) prohibit pay discrimination on grounds of gender, as well as on other protected grounds such as race, religion, disability, sexual orientation and age.
Under Article 7:646 of the Dutch Civil Code, an employer must not make any distinction between men and women in the terms and conditions of employment, including pay. The EU Pay Transparency Directive (2023/970), which the Netherlands must implement by June 2026, will strengthen these obligations by requiring employers to provide greater transparency about pay levels and pay gaps. The equal pay framework extends beyond gender: Article 7:648 of the Dutch Civil Code (introduced in 1996) prohibits unequal pay between part-time and full-time workers; Article 7:649 of the Dutch Civil Code (added in 2002) prohibits unequal pay between fixed-term and open-ended contract employees. Research shows employees on fixed-term contracts earn 2-7% less than those on open-ended contracts despite this statutory prohibition.
When is a pay difference permitted under Dutch law?
Not every pay difference constitutes discrimination. An employer may differentiate based on objective factors such as relevant work experience, education, performance, or labour market conditions. The key criterion is that the justification must be proportionate to the aim pursued and that the same criteria are applied equally to all employees.
The Netherlands Institute for Human Rights (College voor de Rechten van de Mens) and the civil courts assess equal pay claims by comparing the work, qualifications and experience of the employees concerned. If the work is of equal value - determined through a job evaluation system - the pay must in principle be equal.
Remedies for unequal pay in the Netherlands
An employee who believes they are paid less than a colleague performing equal work can file a complaint with the Netherlands Institute for Human Rights. The Institute issues non-binding opinions, but these carry significant weight in subsequent court proceedings. Alternatively, the employee can bring a claim before the subdistrict court. If the court finds discrimination, the employer must adjust the salary and pay the difference retroactively, potentially with the statutory increase of up to 50% under Article 7:625 of the Civil Code. The burden of proof is shared: the claimant must establish facts from which discrimination may be presumed, after which the employer must prove absence of a breach (Article 10 AWGB; Article 6a WGB m/v). Equal pay claims are time-barred after five years under Article 3:308 of the Dutch Civil Code. Any employment contract clause violating the equal pay principle is absolutely void and is replaced by the more favourable rule.