Czech Republic: Implementation of the EU Pay Transparency Directive in the Czech Republic

The Czech Republic has recently made progress in the implementation process of the EU Pay Transparency Directive. Later in March 2026, an official draft bill was published, but it has yet to be introduced to the Parliament itself. The draft bill contains proposals for essential amendments of the Czech Labour Code, including new specific obligations of employers. The proposed provisions are to take effect gradually: recruitment-related obligations on 1 January 2027, with further provisions following on 1 January 2028 and 1 January 2031.

 

Transparent Remuneration System & Pay Gap Reports

The draft bill requires employers to create a comprehensive remuneration system through internal regulation or collective agreement. It will have to specify the method of remuneration, in particular the form, components and grading of salaries. Individual job positions must also be classified into job groups based on the value of work, which depends on its complexity, responsibility, and difficulty.

Employers with at least 150 employees will have to submit a pay gap report once every 3 years to the Ministry of Labour and Social Affairs and employers with at least 250 employees will have to deliver it annually. The report is meant to provide information on the gender pay gap assessed by job groups. If the report discovers an unjustified difference of at least 5 % on an hourly basis that has not been remedied within the prescribed timeframe, the employer will be required to conduct a written and detailed joint pay assessment. Moreover, the Ministry itself will prepare a yearly pay gap report for these employers, based on the data provided via the Employer’s Unified Monthly Report.

 

Pay Transparency Prior To Employment

According to the draft bill, employers must inform job applicants of the minimum salary and other monetary payments and benefits connected with the position. Job applicants will have to be provided with this information before the commencement of negotiations about concluding an employment contract. Furthermore, without more specific statements, it is emphasized that the employer must inform the job applicant verifiably. This implies a written form, typically by including the information in the job advertisement. In addition, the draft bill broadly prohibits employers from inquiring about a candidate’s previous or current remuneration, encompassing not only base salary but also other components of remuneration.

 

Employees’ Right To Information

The draft bill establishes employees’ right to request information on their remuneration, as well as on the average remuneration within their job group, broken down by gender. The employer must provide this information within 2 months and may note it should only be used for exercising the right to equal pay. Where the provision of such information could lead to the disclosure of another employee’s individual remuneration, the information shall not be provided directly to the requesting employee but shall instead be forwarded to the Public Defender of Rights. Furthermore, the draft bill expands the list of topics trade unions, as employees’ representatives, must be consulted on to include the pay gap report before it is submitted to the Ministry. Should the need for a joint pay assessment arise, the employer will also have to consult it with the trade unions prior to publishing it for all employees to have access to it.

Key Action Points for Human Resources and In-House Counsel

• An official draft bill implementing the EU Pay Transparency Directive has been published in the Czech Republic in March 2026, set to take effect gradually on 1 January 2027, 1 January 2028 and 1 January 2031.
• Employees will have a right to receive information on the amount of their remuneration and the average remuneration in their job group within 2 months of deliverance of written request.
• Job applicants will have to be verifiably informed of salary conditions prior to starting the negotiations on concluding an employment contract.