Minimum salary
- A new methodology for determining minimum salaries has been implemented. In line with EU legislation, from 2025 the minimum wage will be determined by an indexation mechanism and be announced by the Ministry of Labour and Social Affairs no later than on 30 September for the following year.
- The guaranteed salary grading (an additional "minimum" salary scaled according to the complexity of the given work) has been abolished as obsolete. Accordingly, from 1 August the only minimum salary amount which employers must adhere to is the minimum salary, determined and announced as above.
- The proposed (not yet approved) level of the minimum salary is 42,2 % of the average salary, i.e. CZK 20 600 for 2025 and 43,4 % of the average salary, i.e. CZK 22 100 for 2026, compared to the current minimum level of CZK 18 900.
Collective bargaining
- Statutory rules for negotiations where more trade unions represent one employer have been specified to eliminate deadlocks. If no agreement is reached within 30 days between the existing trade unions, the employer can enter into a collective agreement with the trade union having the most members. In addition, the application of higher-level collective agreements has been extended to employers active in the relevant sectors with 10 or more employees.
Formal annual holiday plan requirement abolished
- The obligation for employers to issue a formal written plan on annual leave at the beginning of each year, which had been criticised as obsolete, has been abolished.
Further changes from 1 August 2024
- Compensation under agreements for a small amount of work (DPP, DPČ) can be agreed, including surcharges for work performed at night, at weekends or in difficult working environments.
- In the health sector, shifts of up to 24 hours can be agreed with employees. Such agreements can now only be terminated via a termination notice and not be rescinded immediately.
Self-determination of working hours
- From 1 January 2025 it will be possible for employers to agree with employees that they will schedule their working times by themselves.
- In practice, this amendment will likely not bring any major changes as the employers will typically limit the employees in their self-scheduling by excluding work during night, weekends or holidays (which is subject to statutory surcharges) and for employees who work in a team some fixed scheduled working hours are usually required by employers.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.