Czech Republic proposes new pay transparency and equal pay regulations

The Czech government is considering an amendment to the Labor Code to implement EU directives on pay transparency. The proposed rules would require companies to establish remuneration systems based on objective criteria such as job complexity, responsibility, and effort. Under the proposal, employers must provide job applicants with information regarding minimum salary and bonuses before a contract is signed, and they are prohibited from asking about a candidate's previous salary.

To address gender pay gaps, companies with more than 250 employees would need to report on pay differences annually, while those with over 100 employees would report every three years. If unjustified differences between men and women reach 5% or more, the situation must be rectified within six months. Employees would also gain the right to request written information regarding average remuneration levels.

In Slovakia, similar legislation regarding equal pay for work of equal value has already been in effect since June. Slovak employers are currently working to implement written remuneration structures based on gender-neutral criteria to avoid potential fines of up to 10,000 euros from the labor inspectorate. The Czech legislative process is expected to see the first part of these obligations become effective as early as January 1, 2027.