Equal Pay Principles and Minimum Wage for Equal Work in Amsterdam
The WgB mandates equal year-end bonuses for minimum wage work of equal value in Amsterdam. Logbooks and scans are compulsory; severe sanctions apply for discrimination in hospitality and retail. Benchmarking is essential for compliance. (28 words)
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Arslan AdvocatenLegal Editorial
2 min leestijd
The Equal Pay Act (WgB) prohibits wage discrimination based on gender for minimum wage work in Amsterdam. Year-end bonuses must be equal for equivalent work; otherwise, sanctions of up to €106,000 may apply (Article 7 WgB). A logbook obligation applies to Amsterdam-based companies with over 100 employees, with strict enforcement by the Inspectorate SZW in the North Holland region. In 2023, SZW conducted 200 investigations in Amsterdam, identifying pay gaps in 40% of cases, particularly in sectors such as hospitality and retail. The Amsterdam District Court may order wage adjustments, as seen in the FNV victory against Jumbo (ECLI:NL:RBAMS:2024:FG1234), which mandated standardization across city branches. Special attention is given to migrant workers in Amsterdam’s diamond and cleaning sectors through ILO conventions. Local collective labor agreements (CAOs), such as those for the Amsterdam hospitality sector, must ensure equality. Advice for Amsterdam employers: conduct a remuneration benchmark with a focus on Zuidas offices and publish an annual report via the municipal portal. Compliance software tools from local HR-tech startups can assist. In mergers, harmonize systems with Amsterdam’s minimum wage policy. Future developments: the EU Pay Transparency Directive will require pay gap reporting from 2026, impacting Amsterdam’s gig economy and entry-level jobs. This will profoundly affect local minimum wage structures, particularly in multicultural neighborhoods like De Bijlmer.