On 13 December 2023, the Government approved a regulation amending the Government Regulation No. 567/2006 Coll., on the minimum wage, on the lowest levels of guaranteed wages, on the definition of difficult working environments and on the amount of wage supplements for work in difficult working environments.
Minimum wage increase for 2024
The minimum wage has been increased from the current CZK 17,300/month applicable in 2023 to CZK 18,900/month, which will be applicable in 2024.
The minimum hourly wage will increase from the current CZK 103.80 to CZK 112.50.
Minimum levels of guaranteed wages
Along with the increase in the minimum wage, the lowest levels of guaranteed wages for a fixed 40-hour week are also rising. The individual minimum guaranteed wage levels are graded into 8 job groups according to the complexity, responsibility and exertion of the work performed.
The lowest levels of guaranteed wages therefore change for the first, second, third and eighth job groups. For the other job groups, the lowest level of guaranteed wages remains as in 2023.
The difference between the minimum wage and the guaranteed wage
The minimum wage is the lowest permissible amount of remuneration for work in the basic employment relationship (employment relationship, agreements outside the employment relationship). It is regulated by Article 111 of the Labour Code, which stipulates that the wage, salary or remuneration from an agreement held outside the employment relationship may not be lower than the minimum wage.
For the purposes of the minimum wage, the wage, salary or remuneration from an agreement outside the employment relationship does not include wages or salary for overtime work, extra pay for working on public holidays, night work, work in difficult working environments and work on Saturdays and Sundays.
The amount of the basic rate of the minimum wage and its other rates, which are graduated according to the degree of aggravating factors limiting the employee's employment, and the conditions for granting it are set by the government by decree, which is usually effective from the beginning of the calendar year.
In the event that the wage, salary or remuneration from an agreement held outside the employment relationship does not reach the minimum wage, the employer is obliged to make a supplementary payment to the employee.
- For wages - in the amount of the difference between the wage earned in a calendar month and the relevant minimum monthly wage or in the amount of the difference between the wage per hour worked and the relevant minimum hourly wage
- At the salary - in the amount of the difference between the salary earned by the employee in the relevant calendar month and the minimum monthly wage
- For remuneration from an agreement - the difference between the agreed remuneration for 1 hour's work and the relevant minimum hourly rate.
The guaranteed wage is the wage or salary to which the employee is entitled under the Labour Code, a contract, an internal regulation, a wage or salary assessment. It is regulated by Section 112 of the Labour Code.
The minimum levels of guaranteed wages and the conditions for granting them to employees whose wages are not agreed in a collective agreement and to employees remunerated by salary shall be determined by the Government by decree, generally with effect from the beginning of the calendar year. The lowest level of the guaranteed wage must not be lower than the basic rate of the minimum wage.
As mentioned above, the minimum levels of guaranteed pay are set according to the complexity, exertion and responsibility of the work performed by the employee.
If the wage or salary, excluding overtime pay, extra pay for working on public holidays, night work, work in difficult working environments and work on Saturdays and Sundays, does not reach the lowest level of the guaranteed wage for the relevant job group, the employer is obliged to provide the employee with a supplement to the guaranteed wage.
- For wages - in the amount of the difference between the wages earned in the calendar month and the relevant lowest level of the guaranteed wage, or in the amount of the difference between the wages for 1 hour worked and the hourly rate of the lowest level of the guaranteed wage.
- At the salary - in the amount of the difference between the salary earned in the calendar month and the relevant minimum level of guaranteed salary
AVENSIO SW programme
A list of employees whose wage or salary is below the minimum or guaranteed wage is provided in the No. 011200 - Minimum and guaranteed wage (Main menu - Press reports). Always print this report after you have entered all payroll components into AVENSIO SW.
The report lists the employees who need to be paid the minimum and guaranteed wage and the amount of the payment.
For the minimum and guaranteed wage supplement, the user pay code with the system code 30 - MINIMUM WAGE SUPPLEMENT is used for the employee in employment.
For the minimum and guaranteed wage supplement for an employee working on an agreement held outside the employment relationship, the wage code with the system code 31 - MINIMUM WAGE SUPPLEMENT OON is used.
The minimum wage and the lowest levels of guaranteed wages will be in the programme AVENSIO SW set up in time for payroll processing for January 2024.
