Pay transparency and readiness for the EU directive

Gain higher employee performance and loyalty, strengthen employer branding, and ensure full compliance with regulatory requirements for transparent remuneration. With us, you will implement pay transparency effectively and gain a competitive advantage.

In what areas can we help?

Readiness assessment for the EU Pay Transparency Directive

We help companies evaluate their current remuneration system and ensure its compliance with upcoming European legislation.

Do you want true pay transparency? Start right!

If a company does not have the grading set up correctly, there is no point in wasting time, energy and finances on calculating the pay gap.

Before you start calculating, get your grading in order. Properly setting up and classifying positions will automatically reduce the pay gap and improve internal fairness in compensation.

Benefits of pay transparency:

Higher employee performance and loyalty:

Pay transparency increases employee motivation and satisfaction, which translates into higher productivity and lower turnover.

Effective implementation:

We implement transparent compensation quickly and without complications so you can focus on your business.

Stronger employer branding:

Present yourself as a fair and trustworthy employer that attracts talented candidates.

Competitive advantage:

Gain an advantage in the job market and build a team of the best talents.

Full compliance with regulatory requirements:

Minimize the risk of sanctions thanks to our know-how and support in complying with all legal regulations.

Interested? Contact us.

Request for a service proposal

EU Pay Transparency Directive

Directive 2023/970, which strengthens the application of the principle of equal pay for men and women for the same work or work of equal value through pay transparency and enforcement mechanisms, is valid and effective from July 2023.

Implications for employers and employees:

Reporting on the gender pay gap

Employers with more than 250 employees will be required to report on the gender pay gap by 7 June 2027 at the latest and will report annually. From the same date (7 June 2027), companies with 150 to 249 employees must also report once every three years.
Smaller employers with 100 to 149 employees have until 2031 and must also report once every three years.
For companies with fewer than 100 employees, reporting will likely be voluntary, but the final conditions will only be determined by the transposition of the directive for the Czech Republic.
Joint assessment of remuneration in cooperation with employee representatives for companies with a pay gap of 5% or more.

Recruitment of employees

transparency of pay information prior to employment
ban on asking applicants about their pay history

Pay philosophy

ensuring transparency of criteria used to determine employees´ pay and career progression

Average pay levels

employees´ right to request information on their individual pay level and the average pay levels of employees performing the same work, broken down by gender

Remedies and enforcement of remedies

stipulation of remedies and enforcement mechanisms, such as compensation for damage, shift of burden of proof, protection from victimization and sanctions for non-compliance

What does this mean for you?

The EU Pay Transparency Directive will impact almost all employers operating in the EU, and its consequences will be reflected in the entire life cycle of an employee:

July 2023 Validity and effectiveness of the directive
September 2023 Start of transposition of the directive into national legislations
June 2026 End of the transposition deadline
June 2027 Start of obligations for employers to provide specified information

Meeting all the requirements of the Directive will mean modification of many HR processes at companies. We recommend a preliminary GAP analysis of the requirements of the Directive as a first step. This will give you an overall idea of which processes need to be addressed. We recommend undertaking such an analysis as early as possible, as other legislative regulations also introduce the reporting of data related to fair remuneration, and a timely GAP analysis will save you work by avoiding having to implement individual requirements separately.

FAQ about the EU Pay Transparency Directive

No, it will not. A common misunderstanding is that the directive requires companies to publish individual employee salaries. In fact, the directive aims to ensure transparency of pay structures and prevent discrimination, not to publish specific salaries of individuals.

Yes, they can. This provision is based on the amendment to the Labor Code.

Companies should respond to changes in the transparency of remuneration by creating a clear, fair and transparent remuneration system. Key steps include:

Complete remuneration system: Setting up a structure that takes into account all aspects of remuneration, including base salaries, bonuses and other forms of compensation.
Transparent grading: Defining and publishing criteria for determining position and classification, including the required skills and responsibilities.
Performance management: Implementing a system that links remuneration with objective evaluation of employee performance.
Ongoing communication: Ensuring regular sharing of information with employees about the methodologies for setting and adjusting the remuneration system.

Our services can help you design, implement and optimize these systems for maximum efficiency in accordance with current legislation.

The EU Pay Transparency Directive does not require companies to pay all employees in the same job position the same, regardless of performance. The directive focuses on ensuring fair and non-discriminatory remuneration for work of equal value. This means that where job roles are comparable in terms of demands and responsibilities, basic salaries should be fair and non-discriminatory. However, companies are still free to differentiate remuneration based on objective criteria such as individual performance, experience or qualifications. It is important that the criteria for differentiating remuneration are clear, transparent and non-discriminatory.

The sanctions for non-compliance with the EU Pay Transparency Directive are not set at EU level, but are left to individual Member States to define in their national legislation when transposing the Directive. This means that the specific sanctions and measures that can be applied to companies for non-compliance with the Directive may vary depending on the legislation of each Member State. In the Czech Republic, these sanctions should therefore be known by June 2025.