Czech Republic Employment Law: Understanding Work and Wages

The Czech Republic is a Central European country bordered by Austria and Germany. Despite the country’s historical significance, not many people across the globe are familiar with the employment laws and local culture. The Czech government made a few changes to minimum wages for different categories of workers this year. If you have employment interests in the Czech Republic, the following information about the Czech Republic employment law may be helpful.

Criteria for Minimum Wage

According to the Czech Republic employment law, minimum wage is the minimum permissible amount of remuneration for work carried out within a primary employer-employee relationship. The government considers many factors before deciding the minimum wage for local workers.

Since the minimum wage applies to every organization operating in the country (and functioning under the local employment laws), the government ensures looking after the needs of the nationals despite the circumstances.

As stated in the law, the minimum wage in the Czech Republic is classified into eight groups based on the complexity and nature of the work. Moreover, the eight groups were further classified into sixteen grades, each with two grades.

Minimum Wage By Age Groups

The employment law in the Czech Republic also sheds light on how minimum wage fits different age groups and workers with disabilities. We have covered the age-wise wages below to give you an idea. Please note that the age-wise restriction was repealed, and workers can now be equally paid.

  • Employees aged 15-18 working in the Czech Republic were entitled to 80% of the basic wage rate (minimum).
  • Employees aged 18-21 years working in the Czech Republic were entitled to 90% of the basic wage rate (minimum) for six months (starting from the first day of employment).

Allowance Disbursement

According to Government Regulation No. 561/2004, the minimum allowance amount for an adult worker is 30% of the minimum wage. While valid, the level and amount of allowance also depend on how efficient they are in their everyday duties. The government’s positive gesture encourages local workers to give their best in their jobs.

Additionally, employees receiving disability pensions are entitled to 75% of the minimum wage rate. It is also worth noting that employees receiving the total disability pensions, or those in juvenile period with total disabilities and not collecting their disability pensions, are entitled to 50% of the minimum wage rates.

However, new workers should thoroughly check their employment terms and relevance with the local employment law to avoid problems.

The Takeaway

The Czech Republic employment law effectively protects local workers’ rights and offers them decent compensation for their services. The above information can help you determine the implications of how employment laws act in the current year.

If you want to stay ahead of global compliance and international employment laws, visit Global People Strategist today and schedule a demo to learn how we can help your business.

 

 

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