Skip to content On March 26, 2026, the Czech Ministry of Labour and Social Affairs issued a draft bill on pay transparency. The text aims to transpose Directive 2023/970 EU into the Czech legal framework. This article outlines the key provisions of the draft, as well as the main implications for employers and workers. In this respect, it is fundamental to note that the draft bill is currently being revised and is expected to enter into force on January 1, 2027. Certain provisions, however, will be applicable at a later stage.
Employee categorisation based on the value of their work
First, employers will have the obligation to classify their employees into groups, according to “work of equal value”. Specifically, the classification will consider the complexity, responsibility and effort required for work. Accordingly, each group shall be entitled to a specific pay. Further details on such classification and criteria can be found in Section 110 of the Czech Labour Code.
Apart from the above criteria, the draft bill does not appear to exclude additional assessment factors. For instance, employers could also consider the actual performance of the employee or the working conditions. Nonetheless, the same categorisation must be applied throughout the entire company. What is more, employees shall have the right to compare themselves with their predecessors performing the same job.
In order to help employers conduct this classification, the Ministry of Labour and Social Affairs has promised to draft a specific tool and methodology. However, employers will not necessarily have to to follow it. On the other hand, they could also develop their own methodology or follow the provisions of the relevant collective agreement. Nonetheless, whichever is the case, internal regulations on remuneration and benefits must rely on objective and non-discriminatory criteria.
A new approach to the recruitment process
Furthermore, employers are required to inform candidates about the minimum remuneration for a job, as well as other monetary benefits, before the interview. For instance, although it is not necessary to insert the remuneration datum in the job advertisement, it must appear in the invitation to the interview.
In this regard, the Czech transposition draft differs from Directive 2023/970. The latter, in fact, requires to state the payment range clearly, while the Czech draft only refers to the minimum remuneration. Moreover, unlike the Directive, the draft does not require employers to provide relevant collective agreement provisions in advance.
Considering recruitment interviews, the draft bill forbids employers from asking applicants payment information regarding their previous employment, considerably restricting salary negotiations
Information obligations
Based on the draft, employers will be obliged to inform employees, upon request and within a maximum of two months, about the following:
- Pay amount and other monetary payments for the past calendar year.
- The average pay amount for the past calendar year, broken down by gender and pay group.
- The corresponding calculation of the remuneration data, as provided by the Ministry of Labour and Social Affairs.
Lastly, employers shall periodically submit a report on pay gaps within the company and a detailed analysis of how to solve them to the abovementioned Ministry.
The obligations in the present paragraph, however, will only enter into force from 2028.
Conclusions
It appears that the Czech transposition of Directive 2023/970 EU constitutes an effort to reduce gender pay inequalities. In view of the entry into force of the normative, it seems recommendable for employers to start gathering all the required information to assess employees’ work according to its value. Moreover, it will be essential to take all the necessary measures to fight inequalities and monitor future developments on the wording of the law. As a matter of fact, failure to comply with the requirements stated above may result in fines of up to CZK 1 million (approximately € 41,129.00) for employers.