Wage Transparency Aims to Promote Fairness in the Czech Republic

A proposed amendment to the Czech labor code, due to effect in 2025, will give employees the right to request information about the average earnings of their colleagues in the same or comparable positions. Unions welcome this change, believing it will enhance fairness in remuneration within companies.

Currently, women in the Czech Republic earn an average of 13 percent less than men in comparable positions. “The measure may help to observe the principle of equal treatment. It builds on recent changes to the labor code, which are aimed at greater transparency and predictability of working conditions,” said Vít Samek, deputy chairman of the Czech-Moravian Confederation of Trade Unions.

The goal is to eliminate the pay gap. In the healthcare sector, where women make up to four-fifths of the staff, the wage gap is reported to be even higher, up to 22 percent. The Ministry of Labor admits that if someone is objectively more efficient or, for example, performs additional tasks, they are entitled to higher remuneration from the employer.

On the other hand, companies fear the mandatory publication of wage data. They mostly warn of potential disputes among people in the workplace. Furthermore, they expect a significant increase in administration due to the necessary record of wage differences and their publication.

The law’s final version, which will transpose the European directive into Czech law, is still to be determined. It should be noted that the order, unlike the regulation of the European Union, gives member countries freedom in the details of the law. How this law will evolve and impact the Czech labor market remains to be seen.