Blue Marble Blog
Minimum Wage Changes in Czech Republic
The Czech Republic has made some recent changes to minimum wage requirements based on different categories of workers. If you have employees in the Czech Republic, these changes apply to every organization operating in the country, so it’s important to know how it may impact your team.
Criteria for Minimum Wage
According to the Czech Republic employment law, minimum wage is the minimum permissible amount of pay for work carried out within a primary employer-employee relationship. The government considers many factors before deciding the minimum wage for local workers. There are eight groups classified for minimum wage, based on the complexity and responsibilities of the work. The eight groups were further classified into sixteen grades, each with two grades.
• Employees aged 15-18 are entitled to 80% of the basic wage rate (minimum).
• Employees aged 18-21 years are entitled to 90% of the basic wage rate (minimum) for six months (starting from the first day of employment).
Allowance Disbursement
The minimum allowance amount for an adult worker is 30% of the minimum wage. While valid, the level and amount of allowance also depend on how efficient they are in their everyday duties. Employees receiving disability pensions are entitled to 75% of the minimum wage rate. It is also worth noting that employees receiving the total disability pensions, or those in juvenile period with total disabilities and not collecting their disability pensions, are entitled to 50% of the minimum wage rates.
The minimum wage in the Czech Republic is a critical tool for ensuring that workers earn a living wage, while also addressing income inequality and poverty. As the Czech Republic continues to refine its minimum wage policies, finding the right balance between improving living standards and supporting economic growth remains a challenge. Click the link to learn more about managing payroll and compliance in the Czech Republic
The Czech Republic has made some recent changes to minimum wage requirements based on different categories of workers. If you have employees in the Czech Republic, these changes apply to every organization operating in the country, so it’s important to know how it may impact your team.
Criteria for Minimum Wage
According to the Czech Republic employment law, minimum wage is the minimum permissible amount of pay for work carried out within a primary employer-employee relationship. The government considers many factors before deciding the minimum wage for local workers. There are eight groups classified for minimum wage, based on the complexity and responsibilities of the work. The eight groups were further classified into sixteen grades, each with two grades.
• Employees aged 15-18 are entitled to 80% of the basic wage rate (minimum).
• Employees aged 18-21 years are entitled to 90% of the basic wage rate (minimum) for six months (starting from the first day of employment).
Allowance Disbursement
The minimum allowance amount for an adult worker is 30% of the minimum wage. While valid, the level and amount of allowance also depend on how efficient they are in their everyday duties. Employees receiving disability pensions are entitled to 75% of the minimum wage rate. It is also worth noting that employees receiving the total disability pensions, or those in juvenile period with total disabilities and not collecting their disability pensions, are entitled to 50% of the minimum wage rates.
The minimum wage in the Czech Republic is a critical tool for ensuring that workers earn a living wage, while also addressing income inequality and poverty. As the Czech Republic continues to refine its minimum wage policies, finding the right balance between improving living standards and supporting economic growth remains a challenge. Click the link to learn more about managing payroll and compliance in the Czech Republic