Following a gradually intensifying debate on this topic, this year marks a turning point for Czech employers in the areas of human resources policy and pay. The Czech Republic is in the final stages of preparing an amendment to the Labour Code, which is intended to transpose Directive (EU) 2023/970 of the European Parliament and of the Council of 10 May 2023 (hereinafter the “Directive”) into national law; this Directive strengthens the principle of equal pay through pay transparency.
The Draft Amendment Has Already Been Published
The current and anticipated legislative initiative, although presented by government representatives as a minimalist transposition without unnecessary administrative burden, has triggered intense debate among experts and management regarding it practical feasibility and expected increase in bureaucracy. Pay transparency is based on the principle of equal treatment and on the premise that, without information, discrimination is difficult to identify and prove.
At the same time, the gender pay gap in the Czech Republic is among the worst in the EU. Estimates vary depending on the methodology and data used, but most commonly range between 15% and 18% to the disadvantage of women.
Member States are required to transpose the Directive by 7 June 2026, at the latest. The Ministry of Labour and Social Affairs has already prepared a draft transposition, which is currently at the beginning of the legislative process. Accordingly, this article examines the topic specifically through the lens of the published draft amendment.
Material and Personal Scope of the New Regulations
An important aspect that is often overlooked is the fact that the new rules will not apply solely to basic pay (i.e., wages or salary).
The term “pay” is understood in a broad sense and includes any consideration, whether in cash or in kind, provided in connection with employment (e.g., bonuses, premiums, contributions to supplementary pension schemes, company cars for private use, etc.).
The scope of application will not be limited to standard employment relationships but will also extend to the public sector and to work performed on the basis of agreements outside standard employment relationships.
Transparency Begins At Recruitment
The process of recruiting new workers will undergo a fundamental transformation. Employers will be required to provide applicants for employment with information regarding initial pay or its range for the relevant position, prior to entering into contractual negotiations.
The amendment does not strictly require the pay to be stated directly in the text of the job advertisement, although this is recommended as the most effective approach. If the employer does not disclose the pay range in the advertisement, the information must be provided to the applicant by another verifiable means, for example during initial communication.
Employers will be required to determine pay on the basis of objective and gender-neutral criteria such as educational background, prior experience, length of employment, job complexity, or level of responsibility. Employers will also be required to provide relevant information on collective agreements applicable to the position.
A further new provision is the prohibition on employers asking applicants, during the recruitment process, about their pay in current or previous employment. This measure prevents the perpetuation of undervaluation from one workplace to another.
Workers’ Rights to Information On Pay
For almost a year now, workers may not be prohibited from discussing their pay.
Each worker will have the right to request, in writing, information from their employer regarding the individual pay level and the average pay level for the category of workers performing the same work or work of equal value, broken down by sex. The employer will be required to provide this information in writing within two months. Workers will only receive aggregated data on the pay of workers performing work of equal value, not individual pay data. Employers must duly inform their workers of this right.
Where disclosure of pay information could lead to the direct or indirect identification of an individual worker’s pay, access to such information will be limited to workers’ representatives, the Labour Inspectorate, or the Public Defender of Rights.
Pay Structures
Employers will be required to establish a transparent pay structure. This structure must be based on objective and gender-neutral criteria. In particular, criteria such as complexity, responsibility, working conditions, the value of the work performed, and other relevant factors must be taken into account. The criteria must not be directly or indirectly based on sex and must exclude discrimination.
The pay structure should define the method for determining pay and its individual components, the progression of pay, and the classification of work into categories of workers by sex. Such a structure will typically be set out in a collective agreement or in the employer’s internal regulations.
Reporting on the Gender Pay Gap
For larger companies (i.e. those with at least 100 workers), the amendment will introduce new obligations relating to pay reporting.
Most of the relevant data will be collected automatically through a unified monthly employer report, which will minimise administrative burden while providing the state with an effective monitoring tool.
The obligation should be introduced gradually:
- employers with 250 or more workers will submit their first report on the gender pay gap in 2028 (i.e. for 2027) and thereafter annually;
- employers with 150 to 249 workers will submit their first report in 2028 (i.e. for 2027) and thereafter every three years;
- employers with 100 to 149 workers will submit their first report in 2031 (i.e. for 2030) and thereafter every three years.
To ensure equality, the reporting obligation is linked to the obligation to carry out a so-called “joint pay assessment”, which arises if:
- the employer has at least 100 workers (i.e. is subject to reporting obligations);
- the report reveals a gender pay gap greater than 5%;
- the employer does not justify the gap on the basis of objective and gender-neutral criteria; and
- the employer does not remedy the gap within six months of submitting the report.
The joint pay assessment must include an analysis of the representation of women and men within categories of workers, average pay levels, identification of pay differences and their causes, including the impact of return from parental leave, and must set out measures to eliminate unjustified differences.
The employer is required to publish this assessment and make it accessible to workers and competent authorities, while protecting individual pay data. The employer must subsequently implement corrective measures within a reasonable timeframe and may request an opinion from the Public Defender of Rights regarding their implementation.
Shifting the Burden of Proof to the Employer
Significant changes will also occur in the actual dispute between a worker and an employer regarding equal pay, where the burden of proof may be shifted to the employer in equal pay disputes.
The worker is required to allege and demonstrate that they were disadvantaged by the employer compared to others in a comparable position and that the employer’s conduct was motivated by one of the prohibited grounds of discrimination. It is then for the employer to demonstrate that the principle of equal treatment has not been breached.
If the employer is successful in the dispute, the court may assess whether the worker had reasonable grounds for bringing the claim and, if so, whether there are grounds to exempt the claimant from paying the costs of the proceedings or to reduce those costs.
Enforcement and Penalties
Compliance with the proposed regulation will be actively monitored, as evidenced by the current activities of the Labour Inspectorate and its inspection plans for the upcoming period.
For the most serious breaches of the new obligations, the Labour Inspectorate may impose a fine of up to CZK 1,000,000.
Conclusion
The proposed amendment to the Labour Code and related legislation will bring about a (r)evolution in pay practices in the Czech environment, with the ambition of ending the era of non-transparent arrangements and subjective pay setting.
Although management and HR teams express concerns about increased administrative burden and procedural risks, in the long term this regulation may contribute to improved labour market efficiency and stability through more predictable incomes.
The key to success will be a systemic, rather than merely formal, approach to implementation. Employers who use 2026 to conduct a thorough review of their pay structures will not only avoid significant fines and litigation but will also create a modern and fair working environment, which is a prerequisite for prosperity and competitiveness in today’s digital and global economy.
We will continue to monitor developments in the area of pay transparency. The amendment is at the beginning of the legislative process, and its final wording may change.
If you have any questions regarding the new regulation or related matters, please do not hesitate to contact us.
Legal status as of March 31, 2026.
Mgr. Jakub Málek, managing partner – malek@plegal.cz
Mgr. Martin Zavadil, junior lawyer – zavadil@plegal.cz
9. 4. 2026