Last updated 2025-08-22
Quick overview
The Czech Republic is in the early stages of adapting to the EU Pay Transparency Directive. Although there is a legal foundation for equal pay under the Labour Code, there are currently no mandatory reporting requirements for gender pay gaps. However, new rules are expected to reshape employer obligations starting in 2026, with the first reporting due in 2027 for larger employers.
For HR leaders and Comp & Ben teams, the key priorities are to understand existing laws, prepare for transparency expectations, and evaluate internal pay structures to ensure compliance and equity.
Reporting requirements
Which companies must report?
Currently, no companies are obligated to report on gender pay gaps in the Czech Republic.
What information needs to be reported?
None at this time. No reporting frameworks are in place.
When and where to send the data?
Not applicable until EU directive requirements are transposed into national law.
Who can see the results?
Not applicable under current legislation.
Equal pay laws
While there is no specific statutory obligation for “equal pay for men and women,” Section 110 of the Labour Code establishes that employees performing the same work or work of equal value must receive the same wage, salary, or remuneration. This principle applies universally and provides the foundation for future transparency obligations.
Employee rights
Complaints: Employees may file complaints about breaches of labour rights under Section 276(9) of the Labour Code. Employers must consult with the employee and address the issue.
Labour Inspectorate: Employees can report cases of unequal pay to the Labour Inspectorate under the Labour Inspection Act (LIA).
Compensation: Employees are entitled to claim damages or salary differences if they can prove unequal treatment.
Risks of non-compliance
Fines: Employers may be fined up to CZK 500,000 for failing to provide equal pay for the same work or work of equal value.
Reputational risk: Even without formal reporting, complaints or public disputes over pay inequity can damage employer brand and trust.
Pay confidentiality clauses: From 1 June 2025, employers are prohibited from including confidentiality clauses about pay. Breaches can result in fines of up to CZK 400,000.
What will change by 2026
New EU-wide rules
The EU Pay Transparency Directive will create a harmonized framework across all Member States, including the Czech Republic. Key requirements will include:
Publishing pay ranges in job advertisements
Banning salary history questions during recruitment
Reporting gender pay gap data, based on company size thresholds
Conducting Joint Pay Assessments for unexplained pay gaps of 5% or more
Enhancing internal transparency by sharing pay data with employees and their representatives
How Czech Republic is likely to apply them
Legislation is expected by June 2026.
A national reporting platform will likely be managed by the Labour Ministry or Equality Office.
Employers with more than 150 employees should prepare now, as the first reporting deadline in 2027 will be based on 2026 payroll data.
Trade unions and employee representatives will gain greater access to pay information, enhancing internal scrutiny of pay structures.
FAQ
Do I need to act now?
Yes. Employers with more than 150 employees should begin reviewing pay structures and preparing to capture accurate payroll data for 2026.
Will smaller employers need to report?
No, employers with fewer than 100 employees will not be subject to mandatory reporting under the Directive.
What if we identify a pay gap?
If a gap of 5% or more is found and persists for six months, you will need to conduct a Joint Pay Assessment with employee representatives and create an action plan.
What penalties will apply for non-compliance?
Sanctions are expected to include administrative fines, a reversal of the burden of proof in discrimination cases, and employee rights to damages.
Helpful resources
Czech Labour Code (Act No. 262/2006 Coll.)
Labour Inspection Act (LIA)
European Commission: EU Pay Transparency Directive
Monitoring updates on national transposition through EU equality and labour agencies
Guidance from Czech Labour Inspectorate and professional HR associations
