A forthcoming amendment to the Czech labor code, scheduled to take effect in 2025, is poised to empower employees by granting them the right to request information about the average earnings of their colleagues in similar or comparable positions. This move is seen as a significant step toward promoting transparency and fairness in remuneration within companies. The proposed amendment is particularly relevant in addressing the existing gender pay gap, where women in the Czech Republic earn, on average, 13 percent less than men in comparable roles.

The Czech-Moravian Confederation of Trade Unions welcomes this initiative, viewing it as a positive measure to uphold the principle of equal treatment in the workplace. Vít Samek, Deputy Chairman of the Confederation, notes that the amendment aligns with recent changes to the labor code focused on enhancing transparency and predictability in working conditions.

The primary objective of this legislative change is to eliminate the gender pay gap, which is especially pronounced in sectors like healthcare, where women constitute a significant majority of the workforce. In such sectors, the wage gap is reported to be as high as 22 percent. The Ministry of Labor acknowledges that individuals who demonstrate greater efficiency or take on additional responsibilities are entitled to higher remuneration, emphasizing the importance of fairness in determining wages.

However, the proposed amendment has sparked concerns among companies, particularly regarding the mandatory publication of wage data. Fears include potential disputes among employees and a foreseen increase in administrative burdens due to the necessity of recording and publishing wage differences.

The final version of the law, which will incorporate the European directive into Czech legislation, is yet to be determined. It is crucial to note that, unlike European Union regulations, member countries have flexibility in shaping the details of the law. The evolution and impact of this amendment on the Czech labor market will be closely observed, with stakeholders navigating the balance between transparency and potential challenges within the workplace.

Article by Prague Forum