Changes to the minimum and guaranteed wage

On 1 August 2024 Act No. 230/2024 Coll. came into force, which amends the Labour Code and concerns, among other things, the minimum wage indexation mechanism in the Czech Republic. This law implements the EU Directive on adequate minimum wages, introduces rules for calculating and updating the minimum wage and also changes the regulation of guaranteed salary and collective bargaining. In addition, it amends remuneration conditions and introduces new supplements for specific working conditions.

Change in the mechanism for calculating the minimum wage

Minimum wage will be newly set the sum of the forecast of the average gross monthly nominal wage in the national economy for the following calendar year and the coefficient for calculating the minimum wage, which is set by the government by regulation, taking into account the cost of living, the rate of wage growth, long-term trends and productivity rates.

The minimum wage for the relevant calendar year will be announced by the Ministry of Labour and Social Affairs by means of a communication always until 30. 9. of the preceding calendar year. Employers will thus know the minimum wage relatively in advance compared to previous years and can prepare for it.

Employers will also obliged to pay the employee a supplementary paymentif the wage or remuneration under the agreement does not reach the minimum wage or minimum remuneration per hour.

Retrieved fromsewing Forguaranteed wages

The guaranteed salary is adjusted with new groups of work according to qualification and difficulty for public sector employers.

Guaranteed salary private employers is cancelled. Employers will thus only have to comply with the minimum wage. For certain professions this could mean a drop in wages, but at the same time the employer should respect the principle of equal pay, i.e. the principle that all employees of an employer are entitled to the same wage, salary or remuneration for the same work or work of equal value. Thus, if an employee who has an agreed salary works for an employer at the guaranteed salary, the new employee should be remunerated equally for the same work.

Changes in the yeartopplingtaking leave

The obligation for employers to issue a written schedule for taking leave and new rules are being set for scheduling of working hours on the basis of an employer-employee agreement.

Until now, employers were obliged to draw up a so-called leave plan, which unnecessarily increased the administrative burden on employers and as a result these plans were not even followed and changed with the employees' need to take their leave.

Changes in remuneration of FTE and FTE

The new provision is Option negotiate a fee agreement taking into account possible night work, work in difficult environments or work on Saturdays and Sundays. It is a condition of such an agreement that the scope of work in the working arrangements specified and the amount of any additional payments that would otherwise be granted are agreed at the same time.

Changes effective from 1.1.2025

As of 2025, employees can now schedule their own working hours by written agreement with their employer. However, the maximum length of the working shift and other legal limits on breaks and rest periods still apply. Employers are not exempted from the obligation to record the working time of all their employees.