Prague – A significant number of Czech companies are unprepared for the forthcoming pay transparency regulations set to take effect in mid-2026. Under the new European directive, businesses will be required to disclose salary information for men and women in identical roles, a move aimed at addressing wage disparities. An analysis from Deloitte, which CTK has reviewed, indicates that 60% of Czech employers remain unaware of the actual pay gaps within their organizations.
The objective of the European directive is to narrow the wage gap between genders. Currently, women in the EU earn, on average, 12.7% less per hour than men, with the Czech Republic experiencing an even greater disparity of 17.9%. The new regulations will mandate that companies with over 100 employees regularly report gender pay gaps. If the disparity exceeds 5%, they will be required to investigate and address the underlying causes. Additionally, all employers must disclose the starting salary or salary range for any job postings.
“Implementing this directive will enhance transparency and predictability in compensation. We can also anticipate an increase in pressure for wage growth. However, it will necessitate adjustments in internal pay processes and impose a considerable administrative burden. Companies will need to compile overviews of positions, competencies, and salaries, while the state will be responsible for gathering this remuneration data and addressing any issues,” explained Jana Černá from Deloitte Legal.
Despite these impending changes, Deloitte’s analysis revealed that only 22% of companies have begun preparations for the new regulations, with a quarter still unsure of how to comply. Furthermore, 60% of companies do not yet understand the gender pay disparities present within their own ranks. (November 21)
Leave a Reply