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Czech Republic - Minimum Wages - 2011


LAST UPDATE

15 July 2012
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SOURCES


Name of Act

Labour Code No. 262/2006 Coll. « Zákoník práce » Ministry of Labour and Social Affairs, Czech Republic, as amended up to 2012.
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Name of Act

Ordinance No. 567/2006 on minimum salary, minimum level of guaranteed salary, on determination of hazardous work environments and on salary supplement for work in hazardous work environments.
(Narizeni vlady o minimalni mzde, o nejnizsich urovnich zarucene mzdy, o vymezeni ztizeneho pracovniho prostredi a o vysi priplatku ke mzde za praci ve ztizenem pracovnim prostredi. Strana 7739), page 7739.

Name of Act

Labour Inspection Act, Act No. 251/2005 of 3 May 2005

LEGAL DEFINITIONS


Employee/worker

"Employee" is an individual who has reached at least 15 years old and has completed his compulsory school attendance, and who has entered into a labour relation.
Labour Code Art.6

Employer

"Employer" means a legal entity (a legal person) or an individual (a natural person) employing an individual in a labour relationship.
Labour Code Art.7

Wage

"Wage" is a monetary consideration (pecuniary consideration) and in-kind consideration (i.e. consideration of a monetary value) provided to an employee for work done unless otherwise provided in this Code.
In no case, pursuant to an agreement, wages, salaries or remunerations may be lower than the minimum wage rate.

“Salary” is the monetary compensation provided to an employee by his employer where the employer is a public institution.
Labour Code Art.109(2)(3),111(1)

Minimum wage

"Minimum wage" shall be the minimum permissible amount of remuneration for work performed within a basic labour relationship
Labour Code Art.111(1)
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MINIMUM WAGE FIXING


Procedure


Government decides after consultation of the social partners

The government sets the national minimum wage rate in an official decree, after consultation the competent trade union organizations (bodies) and the competent employer organizations, similarly to any regulations or bills concerning employees´ interests.
Labour Code Art.111, 320

Minimum wage set through decentralized collective bargaining

Wages may be determined by collective agreement, however they may not be set at a rate that is lower than the minimum wage rate set by the government.
Labour Code Art.112(2)

Criteria


Cost of living

Yes. In order to fix the minimum rate it shall be taken into account the the consumer price index.
Labour Code Art.111 (2)

Level of wages and incomes in the country

Yes. In order to fix the minimum rate it shall be taken into account the development of wages in the country.
Labour Code Art.111(2)

Coverage


Scope

No exclusions as for categories of workers within the scope of application of the Labour Code. The Minimum Wage provisions shall apply to all labour relations arising in connection with the performance of dependent work between employees and their employers, including relations arising from the performance of a public office where it is expressly provided by this Code.

Notwithstanding the aforementioned, the minimum wage is differentiated for different groups of workers according to age and social condition. More specifically, workers aged less than 18 years receive 80% of the basic minimum wage, while those aged 18–21 years receive 90%. Meanwhile, an employee who receives a partial disability pension is given 75% of the basic minimum wage, and an employee who receives a full disability pension or a juvenile employee who is wholly disabled and does not receive a full disability pension gets 50% of the basic minimum wage.
Labour Code Art.1-5
Ordinance No. 567/2006 on minimum salary Art.4

Specific minimum wage rates


» Specific minimum wage by occupation

The legislation guarantees minimum wage rates in a graduation of eight groups according to complexity, responsibility and difficulty of the work performed. The lowest rate, corresponding to group 1, is the reference level of the basic national rate of minimum wage.
Ordinance No. 567/2006 on minimum salary Art.3(1)(2)
Labour Code Art.112

» Specific minimum wage by sector

No

» Specific minimum wage by region

No

» Minimum wage levels for specific categories of workers


» Youth

Employees aged between 18 and 21 years old are entitled to 90% of the basic minimum wage rate for a 6-month period from the day when the employment relationship commenced.

Employees aged 15-18 years of age are entitled to 80% of the basic minimum wage rate.
Ordinance No. 567/2006 on minimum salary Art.4

» Disabled

An Employee who receives a partial disability pension is entitled to 75% of the minimum wage rate.
An Employee who collects the full disability pension or who is a juvenile and fully disabled, but who does not receive the disability pension is entitled to 50% of the minimum wage rate.
Ordinance No. 567/2006 on minimum salary Art.4

» Other categories

Workers who work fewer than 40 hours per week receive a percentage of the minimum wage in accordance with the number of hours worked. The monthly minimum wage rate is determined on the basis of a 40 hour week.
Ordinance No. 567/2006 on minimum salary Art.5

Level


Minimum wage level(s) in national currency

The national minimum wage was last set on CZK 48.10 (€1.89) per hour for 40 hours a week, and CZK 8,000 (€314.957) per month for 40 hours a week.
Ordinance No. 567/2006 on minimum salary Art.2
Labour Code Art.111(2)

Last minimum wage update

The national minimum wage was set on 1 January 2007
Ordinance No. 567/2006 on minimum salary Art.9

In-kind allowances

“Wage in kind” may be provided by an employer only with the consent of his employee and under the conditions having been agreed with the employee, and within the scope adequate to the employee’s needs.

However, the employer shall pay in cash to the employee at least the amount of the minimum wage or the relevant rate of the lowest level of the guaranteed wage.

In-kind wage may be in the form of products (excluding spirits, tobacco products or other addictive substances), performance, work or services.
Labour Code Art.119(1) and (2)

Rate of payment


» Hourly

Yes. The legislation provides the national minimum wage rate per hour and per month.
Labour Code Art.111(2)

» Monthly

Yes. The legislation provides the national minimum wage rate per hour and per month.
Labour Code Art.111(2)

Scheduled frequency of adjustment

Where the Government sets the new rates of minimum wage, as a rule, shall be taking legal force as of the beginning of the next calendar year. However, the legislation does not set forth the frequency of adjustment.
Labour Code Art.111(2)

Enforcement mechanisms


Labour inspection

The State Labour Inspection Office and designated inspectorates shall control compliance with legal provisions on labour law relations, including legal provisions on the remuneration of employees, compensations on salaries and wages or reimbursement of expenses incurred by employees.
Labour Inspection Act Art.3

Fines in national currency for non-respect of legislation

A natural person shall be considered guilty of a breach of the legislation on the remuneration of employees if he fails to provide to an employee a wage or pay at least as high as the minimum wage or the minimum wage tariff or the pay fixed for the job. In that case the employer may be imposed a fine up to CZK 1,000,000.
Labour Inspection Act Art.13

Results generated on: 29th March 2024 at 07:46:40.
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