NEW COMPENSATION RULES
Prepare Your Company for Transparent Compensation
The new rules will place greater demands on HR in terms of job evaluation, handling payroll data, and providing information to employees. Make sure you have the necessary data and processes in place in a timely manner.
Czech legislation is still being drafted. Therefore, the specific details of these obligations may change before the legislation is finally adopted.
What the New Rules Bring
Transparency will affect the entire compensation process
It’s not just about the gender pay gap. The new rules will affect hiring, salary setting, job comparisons, and communication with employees.
Salary Before Starting Work
The applicant should be provided with information about the starting salary or its range so that he or she can engage in informed salary negotiations.
No pay history
An employer should not inquire about how much a job applicant earned in previous jobs.
The Right to Information
Employees have the right to request information about their pay levels and the average pay levels for comparable work.
Objective Rules
The criteria for compensation and career advancement must be objective and gender-neutral.
Deadlines and Responsibilities
When are the new requirements expected to take effect?
1.1.2027
Proposed Czech legislation
According to the current Czech proposal, the new regulations are expected to take effect at the beginning of 2027.
7.6. 2027
Reporting for 150+ Employees
Under the European directive, employers with at least 150 employees must report specified data on pay gaps for the first time.
7.6.2031
Reporting for 100–149 Employees
Under the directive, the reporting requirement will also be extended to employers with 100 to 149 employees.
As of the time this page was prepared, the Czech transposition has not yet been finally approved.
Czech legislation is still being drafted. The dates listed are based on the current draft and the European directive. Stay up to date with the latest information at mpsv.cz
Are you ready for transparent compensation?
Find out in just a few seconds if you’re ready to meet the new requirements.
Have you described all the job positions?
Can you create comparable groups?
Can you objectively explain the wage gap?
Do you have your reports ready?
Can you respond to an employee within a few minutes?
If you answered NO to at least one of these questions, it’s time to start preparing.
SmartFP helps integrate job descriptions, job classification, compensation analysis, and reporting into a single system. This ensures you’re prepared for new requirements as well as day-to-day HR tasks.