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Pay transparency in Slovakia is becoming a hot topic not only in HR in Slovakia. To meet the new obligations arising from Directive (EU) 2023/970, employers must implement specific measures into their remuneration processes and policies. However, let’s take it step by step and outline what the Directive requires from employers and how to approach these rules effectively.
On April 24, 2023, the EU Council adopted Directive (EU) 2023/970 on pay transparency, introducing new rules aimed at ensuring equal pay for men and women for equal work or work of equal value. For employers, this Directive means they are obliged to ensure transparency and fairness in determining wages and rewards in line with its provisions. Its requirements must be implemented into national legislation by June 7, 2026.
Companies that proactively prepare for a smooth transition and start addressing this topic today will have a significant advantage.
Job applicants have the right to know the starting salary or salary range in a job advertisement or before an interview. The Directive also prohibits employers from asking job candidates about their previous salaries. This obligation applies to all job positions, regardless of the sector. Additionally, the Directive requires job postings to be worded in a gender-neutral manner. In practice, this means employers should avoid language that suggests a preference for one gender.
Tip: To ensure transparency in recruitment, it’s helpful to create standardized job descriptions with clearly defined salary levels. Training HR staff and managers in fair and non-discriminatory wage-setting practices is also recommended.
Employees have the right to request information about their own pay and the average pay of colleagues—broken down by gender—performing the same work or work of equal value. Employers must provide this information in a clear and accessible format while protecting individual employees’ privacy.
Tip: Regularly publishing remuneration reports will enhance an employer’s transparency, boosting trust among the public and employees. It’s also recommended to develop an internal remuneration policy, salary progression framework, and a mechanism for employees to exercise this right, such as through a directive.
Companies with 100 or more employees must publish data on pay differences between men and women every three years. Companies with 250 or more employees must submit this report annually. If the pay gap exceeds 5% and the employer cannot objectively justify it, they must take corrective measures in cooperation with employee representatives. These data will be monitored by the relevant state authority (e.g., labor inspectorate), and failure to comply may result in fines or other sanctions.
Tip: HR analytical tools for real-time tracking of pay gaps are worth implementing.
Employees cannot be penalized, dismissed, or otherwise discriminated against for exercising their right to pay information. If an employer breaches this obligation, the employee can file a complaint with the labor inspectorate or take the matter to court.
Tip: To protect employees from discrimination, it’s advisable to establish a secure communication channel or an anonymous suggestion box.
If an employee files a complaint about gender-based pay discrimination, the employer must prove that no discrimination occurred. If they cannot demonstrate objective factors influencing remuneration, they may face legal consequences, including fines or an obligation to compensate the employee, with no pre-set upper limit on compensation.
Tip: It’s recommended to maintain detailed documentation of factors affecting remuneration, including historical salary data.
About Accace
Accace is a proactive consultancy and outsourcing partner who bridges the gap between needs and solutions. Combining smart and streamlined technology with a holistic approach, we provide an all-round care to clients and consider their matters as our own. With over 800 experts and approximately 2,000 customers, we have vast experience with facilitating the smooth operation and growth of small to large-scale, global businesses.
About Accace Circle
Accace operates internationally as Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience and erase the borders of service delivery. Covering over 60 jurisdictions with more than 7,000 professionals, we support over 80,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and process at least 800,000 pay slips globally.
