Amendment to the Labour Code: Minimum wage indexation mechanism

At a glance

• The Amendment to the Labour Code came into force on 1 August 2024.
• It introduces a minimum wage indexation mechanism and transposes Directive (EU) 2022/2041 of the European Parliament and of the Council on adequate minimum wages. 

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The most important changes include:

Minimum wage

The monthly minimum wage will be set based on the average gross monthly wage in the national economy for the following calendar year and a coefficient determined, so the resulting minimum wage is reasonable, taking into account its purchasing power in relation to the cost of living, the overall level of wages and their distribution, the rate of wage growth, long-term trends and the level of labour productivity. The current plan is to reach a coefficient of 47% by 2029 (currently the coefficient is 42.2%).

Guaranteed wage

The guaranteed wage level has been abolished for the private sector. For the public sector it has been maintained but will now be divided into four bands, with the lowest band equal to the minimum wage and the highest band set at 1.6x the minimum wage. Currently, there are eight groups.

Other changes

An allowance for working in a difficult working environment has been introduced. The government has issued a regulation determining the definition of the difficult working environment, the amount of the allowance and the conditions for granting it. The allowance will be at least 10% of the minimum wage.

The amendment regulates collective bargaining to remove blockages by small trade unions. It also introduces the possibility of providing a state contribution to social partners who conduct negotiations at sectoral level.

The employer's obligation to issue a written leave schedule has been cancelled. Employers and employees will now determine the schedule by mutual agreement.

From 1 January 2025 it will be possible for employees to schedule their own working time into shifts if agreed with the employer.

There are partial modifications to the possibility of setting a 24-hour shift for employees in the healthcare sector and introducing a premium for increased workload of these workers.