today at 05:10 News

Czechia prepares equal pay law: companies will have to explain gender pay gaps

Czechia prepares equal pay law: companies will have to explain gender pay gaps

Czech companies have only a few months left to prepare for new pay rules: the government plans to introduce an amendment to the Labour Code from 1 January next year, transposing the EU's Pay Transparency Directive into Czech law. Under EU rules, Czechia was supposed to adopt the corresponding legislation by 7 June this year, but the bill has still not been approved.

Under the new requirements, employers will no longer be allowed to ask candidates about their salary at a previous job and will be obliged to disclose the proposed salary range in advance. In addition, companies will have to record pay differences between men and women holding the same positions. "The basic principle is simple: employees should receive equal pay for equal work. In practice, this means companies must be able to clearly explain and justify any pay differences," explained tax consultant and managing partner at EKP Advisory Jan Tecl.

Employers will have to prove that employees in comparable positions receive comparable pay, including bonuses and other benefits. Companies with more than 100 employees will be required to regularly report on the gender pay gap. "Given the complexity of the directive's requirements, companies need to start now. Waiting for the final version of the Czech legislation is risky," noted Tomáš Jurčík, director of Comp&Ben, an association specialising in corporate pay issues. According to him, delays could expose companies to penalties and the need to retroactively top up salaries.

The Czech Ministry of Labour and Social Affairs says it aims to minimise the burden on employers. "We have prepared a version that could improve the existing system without creating a significant negative burden," said Labour and Social Affairs Minister Aleš Juchelka (ANO).

According to Eurostat, Czechia currently has one of the highest gender pay gaps in the EU — around 18%. Companies that have so far relied on various pay exceptions and fail to adapt to the new rules risk fines running into millions of crowns, as well as the risk of having to pay salaries retroactively, according to consulting firm BDO. BDO expert Ivona Tajšlová expects a wave of inquiries and requests for clarification once the new rules take effect, and does not rule out an increase in lawsuits. "For a long time, the number of discrimination lawsuits in Czechia has been low. But this could change, as employees will have access to more information and will find it easier to establish the actual facts," she noted.

Sponsored

According to the explanatory memorandum to the bill, an employer will be obliged to provide, upon a written request from an employee, information on the average salary of employees in a similar position — broken down by gender — within two months. The employee will also be able to request clarification or corrections if the data provided turns out to be incomplete or inaccurate.

Employers are not thrilled about the new obligations. "Equal pay for women and men is a legitimate and correct goal, but the path to it must be reasonable, proportionate, and above all sustainable in the everyday operations of companies," said Zdeněk Zajíček, president of the Czech Chamber of Commerce, calling for a minimalist approach when transposing the directive, without adding requirements beyond European standards.

Experts emphasise that the new directive is no mere formality. "In essence, it represents a significant shift in the procedural position of employers in discrimination disputes and will affect all employers regardless of size or number of employees," noted lawyer Tomáš Britz of consulting firm Rödl & Partner Česká republika. According to him, employers will have to prove which criteria justify pay differences between employees performing the same work or work of equal value.

A survey by the Platy.cz service showed that employees perceive a pay system as fair precisely when they consider it transparent. According to the study, 51% of respondents have almost no information about salaries, less than a fifth know the salary ranges for their position, and only 2% have access to data on the gender pay gap. "Pay fairness isn't just about the figure on a payslip. It's important for people to understand the logic behind the system," believes Platy.cz analyst Miroslav Dravecký.

Source: denik.cz

Share: Telegram VK WhatsApp

Related news

The global antidepressant market reached roughly $18.1 billion in 2024, and analysts predict it will exceed $41 billion by 2037 — with women making up the lion's share of consumers. In the US, the proportion of women taking antidepressants
More than 2.7 million people in Czechia are now using artificial intelligence, with young people leading the charge in adopting tools like ChatGPT, Gemini and Copilot, according to the Czech Statistical Office (ČSÚ).Data from the office sho
Scientists from the Institute of Atmospheric Physics of the Czech Academy of Sciences and Charles University have studied the deadliest weather-related disasters on Czech territory between 1851 and 2025, compiling a list of 13 tragedies wit
The Nové Mlýny reservoir cascade in southern Moravia — Mušov, Věstonice and Nové Mlýny itself — no longer serves its original purpose of irrigating farmland. Instead, every summer it turns into a shallow "incubator" for toxic blue-green alg
Šumava National Park — one of Central Europe's oldest mountain ranges — offers travelers glacial lakes, ancient forests, peat bogs and stunning viewpoints. The area was first granted protected landscape status back in 1963, and in 1991 it w
Filming has wrapped on the fourth instalment of the beloved Czech wine comedy franchise Bobule, titled Bobule a bobulky (Bobule and Little Berries), with the theatrical premiere set for 11 February 2027. The news was announced by the film's
The Liberec Region is famous for more than just Trosky, Bezděz or Ještěd — tucked away across North Bohemia are dozens of lesser-known but equally captivating spots, well worth a backpack trip for their striking views and unusual stories.On
Four years after the devastating fire in Bohemian Switzerland National Park, the scorched land has transformed into a living forest teeming with plant and animal life, park spokesman Jan Salov has reported.Nature began recovering almost imm
Researchers have discovered that chimpanzees and bonobos gather together before stressful situations, calming one another with touches, hugs and kisses — behaviour that echoes footballers huddling up and patting each other on the back befor
Ambassadors of EU member states (the so-called Coreper) met in Brussels to discuss the overhaul of the ETS emissions trading system, hearing a briefing from Kurt Vandenberghe, a representative of the European Commission's Directorate-Genera
Czech architect Martin Rajniš, one of the founders of the Czech Chamber of Architects, is renowned for structures that blend modern architecture with nature — his lookout towers, timber constructions and other original creations can be foun
Czechia has towns that officially ceased to exist — demolished for brown coal mining or flooded to make way for reservoirs. The most famous examples are Most, Přísečnice and Doupov, whose stories rival the drama of legendary vanished cities