Pay Transparency: The Trend Reshaping Recruitment in Europe
In recent years, pay transparency has moved from being a buzzword to becoming one of the most important trends in the workplace. Across Europe, and especially in the Netherlands and Belgium, the conversation is no longer about if transparency will happen, but how fast. The EU Pay Transparency Directive, which all member states must implement by June 2026, is pushing employers to rethink how they approach salaries, negotiations, and fairness at work.
From Secrecy to Transparency
Traditionally, salaries were a closely guarded secret. Job postings rarely mentioned pay, and employees often had little insight into how their earnings compared to colleagues. That’s changing quickly. The directive requires companies to publish salary ranges in job ads, stop asking about salary history, and report gender pay gaps if they employ more than 100 people. In practice, this means candidates will walk into interviews already knowing what’s on the table, and employees will gain new rights to challenge pay disparities.
Over in the Netherlands, policymakers are opting for a minimalist transposition of the EU Pay Transparency Directive, introducing just what’s necessary through amendments to existing laws such as the Equal Treatment Act, Works Councils Act, and the Labour Intermediaries Act. Employers with 100+ employees will be required to implement gender-neutral salary structures, provide pay range info before interviews, and file pay gap reports starting in 2027, all under the watchful coordination of works councils and potential enforcement by the Labour Inspectorate.
In contrast, Belgium is moving faster and going further: building upon its decade-old gender pay gap law, the government is lowering the action threshold to a 3% unexplained pay gap and mandating salary ranges in every job advertisement. Detailed reporting on base pay, bonuses, and benefits is set to become standard, with non-compliance potentially leading to fines or reputational fallout.
Why It Matters for Employers and Candidates
For candidates, pay transparency means clarity and confidence. No more wasted interviews on jobs that pay below expectations, and more power to negotiate fairly. For employers, it is about more than compliance: transparency builds trust, strengthens the employer brand, and helps retain talent. On the flip side, it also forces companies to confront pay disparities that may have gone unnoticed or unchallenged until now.
The Future of Work is Open
Whether through the Netherlands’ gradual approach or Belgium’s stricter path, the direction is the same: secrecy around salaries is fading. By 2026, pay transparency will be a defining feature of the European labor market. Employers that embrace this change early will stand out as fair, attractive workplaces. Those that resist may find themselves struggling to explain, or justify, why they kept salaries in the dark for so long.
Curious how technology and legislation are reshaping the hiring process? Read our recent blog on AI in Recruitment and discover how automation and transparency are rewriting the rules of talent management.
At Linkrs, we help employers and candidates navigate these shifts with clarity. Reach out to our team for tailored insights and support in building fair, future-proof recruitment strategies.