Is the gender pay gap in Czechia a real problem, or just a statistical trick?

Is the gender pay gap in Czechia a real problem, or just a statistical trick? Two completely different claims can be heard in the public debate today: according to one, the difference in pay between women and men is minimal or almost non-existent, while Eurostat statistics point to a gap of around eighteen percent. So who is actually right?

Differences in pay between women and men do exist on the Czech labour market, but the question is how to understand them correctly and where exactly they arise. Only when we are able to unpack this phenomenon more precisely – from occupational segregation and career breaks to remuneration systems in companies – can we look for solutions that will truly work. The discussion about tools, including the upcoming Pay Transparency Directive, should not be based on questioning the very existence of the problem, but on finding ways to address it effectively and meaningfully.

The pay gap exists. There is just not only one.

According to Eurostat data, the so-called unadjusted gender pay gap in the Czech Republic is approximately 17–18%. In other words: in Czechia, women earn on average about 17% less than men in hourly wages; the EU average is around 12%. In the private sector, the gap tends to be higher than in the public sector, and it is largest among people in middle age, where it can exceed 20%.

However, this indicator does not compare “equal pay for equal work”; it compares the average hourly earnings of all men and all women in the economy. It is an important indicator of structural differences in the labour market.

Alongside this, there is the so-called adjusted gender pay gap, which seeks to compare comparable work situations: position and job content, qualifications, experience, and sector. This gap is estimated at roughly between 5% and 10%, but finding precise statistics is difficult – it requires in-depth data that is not always available. So we have only a rough estimate.

And this is exactly where a media shortcut often arises: if the difference is “only” a few percent, then supposedly there is no problem at all.

But five percent is not zero

The so-called adjusted gender pay gap is lower than the unadjusted one. But it is not zero. At today’s average wage, it means approximately CZK 30,000 less per year – which over 10 or 20 years of work is quite a significant amount. It should also be added that the adjusted pay gap is more difficult to measure. Companies have different wage structures, job evaluation methodologies and bonus systems.

It should be acknowledged that a number of large companies, especially those subject to non-financial reporting obligations, have been systematically addressing pay equality for several years.

However, the Czech economy is not built only on large corporations. The overwhelming majority of companies are small and medium-sized enterprises with up to 250 employees. And in their environment, topics such as diversity, equality or transparent remuneration often resonate much less, especially outside major cities.

It is not hard to imagine situations in which salary negotiations still take place in the style of: “And what salary did you have in mind?”

The turning point comes with the first child

Let us return to the unadjusted 17% gap, which reflects uneven representation across sectors and positions and, above all, the “motherhood penalty.”

One of the strongest factors creating the gender pay gap in Czechia is parenthood. Among young women and men before the birth of children, the wage gap is relatively small. After the arrival of the first child, however, it begins to widen rapidly. In most cases, it never fully closes again. According to economist Claudia Goldin, Nobel Prize laureate in Economics, the “motherhood penalty” accounts for a large part of the differences in pay between women and men in modern economies.

The Czech Republic is also among the countries with one of the longest real absences of mothers from the labour market. Long career breaks, limited opportunities for flexible work and a difficult return to employment deepen earnings gaps, which are subsequently reflected in lower pensions for women. The debate on the gender pay gap is therefore not only a question of equality in the labour market, but also of broader social sustainability. At a time when Czechia is facing rapid population ageing and a declining birth rate, it is worth asking whether the current setup of parenthood and work truly helps families. It is no coincidence that many couples today remain with only one child. The combination of caring for young children and a long absence from the labour market represents a significant economic and career risk for many women. This is precisely why it is time to open a serious debate on systemic changes to parental leave and on greater flexibility in parents’ return to work, as we at Business for Society strive to do through our annual Mothers and Fathers Welcome conference. Last year, we presented an interesting economic analysis on this topic (link and link to the analysis and presentations).

Occupational segregation

This is closely related to occupational segregation. Men and women often work in different sectors of the economy. Women more often move into services, education or healthcare – sectors that are highly important to society, but have long been less well paid. Men, on the other hand, significantly dominate technical fields, industry and IT.

This difference does not emerge only in the labour market. It begins much earlier, often already in primary school when choosing a field of study. And in the Czech context, it is further reinforced by certain social expectations associated with parenthood. Many women choose, or later move into, professions that are less demanding in terms of career progression, offer more stable working hours, work close to home and easier reconciliation of employment with childcare. In practice, these strategies make sense because they help manage two roles at the same time: professional and parental. But the price they pay for this is high. They often leave the fields they studied, accept positions below their qualification level, and their career growth slows down or stops altogether. From an economic perspective, this is not only an individual loss of income, but also a waste of human potential and public investment in education.

Women in leadership

Another factor is the representation of women in leadership. And not only in the private sector, but also in public administration. The claim that women are simply not interested in these positions no longer holds up very well. Practical experience shows that women’s career paths are shaped much more by the institutional setup of the labour market, expectations linked to parenthood, and opportunities to reconcile work with family care than by individual preference alone. If a career is to be compatible with family life, these very conditions must change, and entrenched stereotypes need to be broken down.

The paradox of part-time work

An interesting paradox of the Czech labour market is part-time work. Compared with many Western European countries, we still have very little of it. This is not only a question of availability, but also of whether part-time work pays off financially. It can happen that a woman officially works part-time, while the volume of work and responsibility are practically the same as in a full-time role. The result is simple: instead of a gradual return to work, women often choose a long career break. Returning after three or four years is then difficult – especially in sectors that change rapidly. In some professions, such a break can amount almost to a career restart. Another factor is the capacity and financial accessibility of preschool facilities, which also limits women’s return to work.

The debate about the gender pay gap is often simplified into a dispute over a single number: whether the “correct” figure is 17%, or rather 5%. In reality, both figures are relevant; they simply describe different things.

If we want to reduce the pay gap, it is not enough to address only wage tables within companies. We also need to look at the structure of the labour market, parental policy, work flexibility and the representation of women in leadership positions.

The gender pay gap therefore exists in Czechia. But the question is not whether it exists – it is what exactly creates it and what we want to do about it.

We would like to thank all responsible companies in the Diversity Charter and members of Business for Society for actively addressing this topic within their organizations. They are the ones helping to change entrenched stereotypes and cultivate the Czech labour market.

This year, as a Network Partner, we have decided to support the Equal Pay Day 2026 conference, as well as our signatories who will speak at the conference or support it as partners. In such important topics, it is necessary to join forces in order to create pressure that cannot easily be ignored.