Prague – Most Czech companies are not yet prepared for the new rules on pay transparency, which will come into effect from mid-2026. According to the European directive, companies will have to disclose the salaries of men and women in the same positions, which should help reduce pay disparities. An analysis by consulting firm Deloitte, whose findings CTK has access to, showed that six out of ten Czech employers still do not even know the actual extent of the pay disparities in their own structures.
The European directive should reduce wage disparities between men and women. In the EU, women receive on average 12.7 percent less per hour of work than men. In the Czech Republic, the gap is even wider at 17.9 percent. Under the new rules, companies with more than one hundred employees will have to regularly disclose pay gaps between genders, and if this gap exceeds five percent, they will have to analyze the causes and rectify the situation. At the same time, all employers will be newly required to disclose the starting salary or its range for advertised positions.
“Transposing the directive will bring greater transparency and predictability in remuneration, and we can also expect increased pressure on wage growth. On the other hand, it is also necessary to consider changes in internal remuneration processes and a fairly significant administrative burden, both for companies that will have to create overviews of positions, competencies, and remuneration, and for the state that will collect remuneration data and address any shortcomings,” said Jana Černá from Deloitte Legal.
However, Deloitte’s analysis showed that only 22 percent of companies have started preparing for the launch of the new rules, and a quarter still have no idea how they will prepare for the directive. At the same time, three-fifths of companies still do not know the differences in pay between men and women in their own company. (November 21)