Last week we informed you about the upcoming amendment to the Labour Code. This amendment was approved by the Senate on 25 July 2024 and, if signed by the President of the Republic, will be effective from 1 August 2024. Another change brought by this amendment to the Labour Code is the legal adjustment of the guaranteed salary and the abolition of the guaranteed wage.
Cancellation of guaranteed wages
The abolition of the guaranteed wage resulted from an analysis carried out by the Ministry of Labour and Social Affairs. According to it up to 90 % of wage and salary employees without collective agreement coverage are paid above the relevant minimum guaranteed wage level a up to 50 % of these employees are even paid twice the minimum wagewhich corresponds to the eighth group of works.
The amendment to the Labour Code thus the guaranteed wage is abolished, as an adequate remuneration of employees should be ensured by a minimum wage indexation mechanism. Employers will thus be relieved of the administrative burden associated with a guaranteed wage.
Guaranteed salary
Remuneration in the salary sphere will cover the legal regulation referred to in Section 112 of the Labour Code, which defines the institution of guaranteed salary.
The guaranteed salary is the salary to which the employee is entitled under the Labour Code, a collective agreement, an internal regulation or a salary assessment. The amount of the salary shall not be less than the lowest monthly level of the guaranteed salary.
After the amendment of the Labour Code, the lowest the levels of monthly and hourly guaranteed salary will be divided into 4 groups of work and the amount of the guaranteed salary in these groups will be based on the minimum wage:
- group - 1 times the minimum wage
- group - 1.2 times the minimum wage
- group - 1.4 times the minimum wage
- group - 1.6 times the minimum wage
Employees will be divided into the following job groups according to the qualification requirements of the work performed. This division shall be determined by the Government by regulation.
The lowest guaranteed salary levels for the following calendar year will be announced by the Ministry of Labour and Social Affairs by means of a communication published by in the Collection of Laws by 30 September of each year.
Supplement to the guaranteed salary
The employer is obliged to provide the employee with a supplement to the guaranteed salary if the salary, excluding overtime pay, holiday pay, night work, work in difficult working environments and Saturday and Sunday work, does not reach the applicable monthly minimum level of the guaranteed salary. The supplement granted is the difference between the salary earned in a calendar month and the corresponding lowest level of guaranteed salary.
