Pay transparency: D-Day for Slovak firms is approaching

Slovak companies now have only a few days left to make pay transparent and to equalise the pay of men and women for the same work or work of equal value. According to Eurostat data, the difference in average earnings between men and women in Slovakia is more than a sixth. As Zuzana Motyčáková, Outsourcing Partner at Forvis Mazars, points out, many companies are still not administratively prepared for this change, let alone for its economic impact. They will have to reckon not only with rising payroll costs, but also with an increased administrative burden, the obligation to review internal remuneration systems and a higher risk of employment disputes. The new Act No 76/2026 Coll. on equal pay for men and women for the same work or work of equal value enters into force on 7 June 2026.

Pay secrecy and pay gaps? Companies may face fines

The new act on equal pay for men and women, which transposes the European Pay Transparency Directive 2023/970 into Slovak law, introduces a legal obligation for companies to pay men and women equally for the same work. As Zuzana Motyčáková notes, the new legislation will not only reveal pay differences that have been hidden for years, but will also redraw the labour market.

“The gender pay gap in Slovakia remains significant. According to Eurostat it stands at 15.7%, and in some sectors, such as financial and insurance services, it reaches almost 29%. Transparent pay will therefore not be merely a technical adjustment of systems, but a test of employers’ trust and values,” warns Zuzana Motyčáková.

The legislation introduces an obligation for employers with more than 100 employees to submit pay gap reports to the Ministry of Labour, Social Affairs and Family. If the reported pay gap between men and women in the same or comparable positions exceeds 5% and the employer cannot objectively justify it, the employer must take immediate corrective action. Otherwise it may face a fine from the Labour Inspectorate or even a court dispute.

The burden of proof lies with companies

“If a company fails to remedy the situation within the set deadline, a fine from the Labour Inspectorate may reach up to EUR 100,000,” warns Mariana Bezeková of the law firm Bartošík Šváby. In addition, employees may enforce their rights through the courts. “The burden of proving that no discrimination occurred lies with the employer. Pay differences that are not objectively justified will give rise to an obligation to pay back wages and compensation for non-pecuniary harm,” notes Zuzana Motyčáková.

A company can absolve itself of liability only on the basis of objective criteria that are not founded on discrimination. “Such objective criteria include, for example, education, length of relevant experience, certifications obtained or measurable performance indicators (KPIs), as well as difficult working conditions or shift work,” Mariana Bezeková explains. Differences that arose during past recruitment or managers’ subjective preferences will not hold up under the law. If companies fail to manage this, fines or court disputes could leave a significant mark on their cash flow.

Stronger rights for candidates

The pay revolution will also affect recruitment procedures. Employers may no longer ask candidates about their previous pay. The aim is to ensure that candidates, especially women returning from maternity leave, do not carry low pay from the past into a new job. Employees may also request in writing information on the average pay levels of workers performing the same work, broken down by gender.

A challenge for companies

Having a clear methodology and defining “work of equal value” will therefore be a particular challenge for companies’ HR teams. The directive requires comparison not only of identical positions, but also of those that require a similar level of skill, effort and responsibility. “It is no longer enough for companies merely to declare that they do not discriminate in pay for work of equal value or that they pay fairly across the organisation. Employees now expect evidence, such as data that demonstrates equality, transparency in how remuneration systems are designed, and clear links between performance, career progression and pay,” Zuzana Motyčáková explains.

Not all companies are ready for the changes. According to a recent survey by Humanet, half of the nearly seventy HR managers and directors surveyed at small, medium-sized and large companies are still uncertain about the methodology and say they need more time than the 7 June deadline on which the legislation takes effect.

The quality of data matters

Data quality will be crucial. “Companies without accurate payroll and HR data cannot see where differences arise, nor can they track real progress. Payroll systems contain a large share of a company’s sensitive and strategic information – from salaries and bonuses to working hours and long-term employment trends,” notes Zuzana Motyčáková.

This is also why Forvis Mazars has joined forces with its partner Humanet to help companies prepare for the regulation systematically – from basic pay audits and adjustments to job positions, through to setting criteria and interpreting the results for employees. In practice this means that companies receive precise procedures, tools and support to put the new rules into practice: cleaning up data, defining positions, setting objective criteria, calculating differences, preparing reporting and communicating the results correctly within the organisation.

A recent European payroll survey by Forvis Mazars showed that up to 70% of companies’ key data passes through payroll systems, yet many organisations use only a fraction of this data in strategic decision-making. Moreover, although payroll data contains most of the information needed to analyse equal pay, only 17% of companies use automated systems to monitor compliance. “We help companies identify inequalities and propose concrete solutions so that they can avoid legal sanctions and protect their reputation. We can set up gender-neutral, transparent systems for both recruitment and employment,” Zuzana Motyčáková explains. Forvis Mazars also offers companies the internationally recognised EQUAL-SALARY equal pay certification. This voluntary initiative goes beyond mandatory compliance with the pay transparency act and demonstrates a company’s active commitment to promoting equality and fairness in the workplace.

Workplace tension or fairness?

Although companies have often used “pay secrecy” to optimise costs, the new directive puts a line through that budget. Only time will tell what it will bring to workplace relations. As Zuzana Motyčáková adds, companies that underestimate the process face not only six-figure sanctions, but also reputational damage, a deterioration of corporate culture and a loss of employees’ trust and loyalty. “Transparency is no longer a choice, but a legal obligation that will show who plays fair in business,” the Forvis Mazars expert adds.

Key changes for employees and candidates

• A job candidate will have the right to information on pay or its range before a job interview, for example through a published job advert.
• Published job adverts and job titles must be gender-neutral and the selection process must not be discriminatory.
• Employers may not require candidates to provide information about their pay with a previous employer.
• Employers will be obliged to ensure that men and women receive equal pay for work of equal value.
• The pay structure will have to be based on objective criteria – it should take into account the complexity of the work, the responsibility and the demands of the tasks, not the employee’s gender.
• Employees will have the right to obtain from their employer information on the average pay of other workers in the same positions, broken down by gender.
• Companies will have to inform employees of the objective criteria that determine their pay and further pay progression.
• A company will not be able to provide an employee with information on the pay of a specific colleague.
• Where there is an unjustified difference exceeding 5% of pay, companies will be obliged to carry out a joint pay assessment in cooperation with employee representatives.
• Companies with at least 250 employees will have to provide the Ministry of Labour, Social Affairs and Family of the Slovak Republic with an annual report on the pay of men and women. Companies employing between 100 and 249 employees will have this obligation every three years.

Key changes for employers

• Candidates must have access to information on pay before an employment relationship is concluded.
• Employers must introduce clear systems for comparing positions.
• Pay setting and progression must be based on documented, objective criteria.
• Pay rules must be transparent and gender-neutral.
• Differences exceeding 5% must be eliminated within six months.
• Companies with at least 250 employees must report pay differences annually from 2026; those with 150 to 249 employees must do so for the first time for 2026 and then every three years; those with 100 to 149 employees are obliged to do so for the first time for 2030.