Minimum wage and guaranteed wages in the Czech Republic from 1st January 2016

Illustration

The Czech government adopted Government Regulation no. 233/2015 Coll. on 20th August 2015, amending Government Regulation no. 567/2006 Coll., on minimum wage, on minimum levels of guaranteed wages, on defining an aggravated workplace, and on the amount of bonuses for work in difficult working environments, as amended. The base rate of minimum wage will increase from 1st January 2016.

The base rate of minimum wage for the 40 hour work week, gross, in 2016 will be CZK 9,900 per month, or CZK 58.70 per hour. Minimum wage for a 40 hour work week for an employee who has received a disability pension is CZK 9,300 per month, or CZK 55.10 per hour.

Minimum wage is the only quantity of salary for employees in private organizations that apply collective wage bargaining (see Section 111 of the Labor Code). A higher minimum wage than mandated by government regulation on the minimum wage can be set in collective agreements. In other private organizations, where there is no collective agreement, or it does not specify wage conditions, guaranteed wage levels (see Section 112 of the Labor Code) are applied alongside the minimum wage. The lowest level of guaranteed wages for the first job group is the same as minimum wage.

Guaranteed wage levels

(40 hour work week)

Job group

CZK per hour

CZK per month

2015

from 01.01.2016

2015

from 01.01.2016

1st

55.00

58.70

9,200

9,900

2nd

60.70

6480

10,200

10,900

3rd

67.00

71.60

11,200

12,100

4th

74.00

79.00

12,400

13,300

5th

81.70

87.20

13,700

14,700

6th

90.20

96.30

15,100

16,200

7th

99.60

106.30

16,700

17,900

8th

110.00

117.40

18,400

19,800

Rates of minimum and guaranteed wage levels for employees with limited employability

(40 hour work week)

Job group

CZK per hour

CZK per month

2015

from 01.01.2016

2015

from 01.01.2016

1st

48.10

55.10

8,000

9,300

2nd

53.10

60.90

8,900

10,300

3rd

58.60

67.20

9,800

11,300

4th

64.70

74.20

10,800

12,500

5th

71.50

81.90

12,000

13,800

6th

78.90

90.50

13,200

15,300

7th

87.10

99.90

14,600

16,800

8th

96.20

110.30

16100

18,600

Examples of minimum wage according to the length of a work week

Employers can derive specific minimum wage rates per hour according to a set weekly working time from the base or reduced (in the case of employees with limited employability) hourly rate according to the formula:

MWx = MWz times k
k = 40 / x

MW = minimum wage for the work week
z = 40 hours
x = other maximum weekly working hours, for example, 37.5 hours

Calculation:
MW37,5 = 58.70 times k
k = 40 / 37.5 = 1.0667
MW37,5 = 58.70 times 1,0667 = 62,61529 rounded to CZK 62.60

Weekly working time in hours

Minimal wage in CZK / hour
(rounded to 10 h.)

base rate

reduced rate*

40

58.70

55.10

38.75

60.60

56.90

37.5

62.60

58.80

* for employees with limited employability receiving a disability pension

More information on the minimum wage changes, the individual job groups, rules for balance payments and related provisions of the Labour Code can be found on the website of the Ministry of Labour and Social Affairs here.

The full text of Government Regulation no. 567/2006 Coll., on minimum wage, applicable from 1st January 2016, is available here.

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Article source The Ministry of Labour and Social Affairs of the Czech Republic - official webite of the ministry
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