Czech Republic increases minimum wage

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The Czech Republic increased the minimum wage and related guaranteed salary levels from 1 January 2015.  As well as Czech workers, the increase will affect employees from EU countries seconded to the Czech Republic for more than 30 days in a calendar year.

From 1 January 2015, the minimum salary level increased from CZK 8,500 (approx €309) to CZK 9,200 (approx €334) per month.  The minimum salary level for disabled employees has not been increased and remains at CZK 8,000 (approx €270) per month in cases where the individual’s disability impacts their work performance.  Where work performance of disabled and non-disabled employees is comparable, disabled employees must receive the same salary as their non-disabled co-workers under the new minimum wage levels.

Alongside the minimum wage increase, the 8 guaranteed salary levels have also increased from 1 January 2015, with the highest level now fixed at CZK 18,400 (approx. €670) per month.  The guaranteed salary levels specify the minimum wage levels an employee must receive for more complex work.  In practice, the minimum wage of CZK 9,200 (the 1^st level of the guaranteed salary levels) applies only to the simplest work - ie. those with simple repetitive tasks and minimum responsibility, such as cleaners.  The work of a cashier, for instance, would not be considered work of the 1^st level and as such would fall under the 3^rd level, with a respective guaranteed wage of CZK 11,200 (approx €407) per month.

Further information

For further information or to discuss any of the issues raised, please contact Mr Daniel Vejsada (daniel.vejsada@prkpartnes.com) or Ms Tereza Erényi (tereza.erenyi@prkpartners.com).

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