The minimum wage will gradually increase to 47 percent of the average wage by 2029. It is now at 41.1 percent and has grown to 18,900 crowns since January. Guaranteed wages based on expertise, responsibility and demanding work will remain from next year only in the public sector, they will be abolished in the private sector, which was criticized by the trade unions. Changes will be brought about by the government’s amendment to the Labor Code, which was signed by President Petr Pavel on July 31. About his signature informed Roost.
According to the government, the calculation of the minimum wage should be based on the predicted average wage for the next year, which the Ministry of Finance will announce by the end of August. The government sets a coefficient that takes into account purchasing power, the cost of living, the level and rate of wage growth as well as the development of productivity. The minimum wage is determined by the Ministry of Labor and Social Affairs by the end of September as the product of the expected average earnings and the coefficient. If the newly announced minimum wage is lower than the original, it will remain in effect.
The guaranteed wage, which represents the lowest earnings according to the expertise, demandingness and responsibility of the work and which is paid in eight steps from the minimum wage to double it, will be abolished in companies from next year. In the public sector, it will remain in four stages from the minimum wage to 1.6 times it. Parliament pushed through this change at the government’s suggestion despite criticism from trade unions, who fear a reduction in income growth for many workers and a decline in their living standards and the expansion of the gray economy.
The House of Representatives included an amendment in the government amendment to improve the remuneration of public sector employees. The proposal increases the maximum personal allowance for an employee from the current 50 percent to 100 percent of the relevant salary scale. Removes restrictions by grade. The employee will be able to receive the personal allowance from the beginning of the employment relationship. The reason for the adjustment is that the public administration can pay better employees.
The adjustments also include the employee’s ability to schedule their working hours, if the employer agrees. Again, it will be possible to terminate such an agreement only in writing and without giving a reason. The amendment also includes the possibility to negotiate remuneration for night work, weekend work or work in a difficult environment in the work performance agreement.
Source: ČTK
Photo: canva.com
