Proposed amendments to the Czech Labour Code (update)

28 May 2024 2 min read

At a glance

Update: 28 May 2024

  • The proposed draft amendments are undergoing parliamentary discussion.
  • It was originally intended to issue the amendments as of 1 July 2024. This will however not be the case.
  • It is now expected that the amendments will take effect from 1 January 2025.

Amendments to the Czech Labour Code implementing the EU Directive on a fair minimum wage has been proposed to the parliament. The amendments are proposed to take effect from 1 July 2024.

A draft amendment to the Czech Labour Code had been proposed and accepted by the Czech government. The proposal has now entered the legislative process in the parliament. The amendments are intended to implement the Directive on a fair minimum wage in the European Union (Directive 2022/2041 of the European Parliament and of the Council of 19 October 2022). The main areas of the proposed changes are as follows:

Monthly minimum wage

The monthly minimum wage should be set on the basis of the average gross monthly nominal wage in the national economy for the following calendar year and a coefficient. The coefficient should be determined so that the resulting amount of the minimum wage is appropriate: in particular in relation to the purchasing power of the minimum wage with respect to the cost of living, the general level of wages and their distribution, the rate of wage growth, long-term development and the level of productivity. The current plan is to achieve the coefficient of 47 % until 2029 (currently the coefficient is 42,2 %).

Guaranteed wage

According to the proposal, the levels of guaranteed wage will be cancelled for the private sector. For the public sector, it will be graded according to four groups of work with the lowest group to be equal to the minimum wage and the highest group of work proposed at 1.6 times the minimum wage. Currently, there are eight groups.

Other changes

It is also proposed to prevent the possible blocking of collective bargaining by small trade unions in situations where several trade unions are active at the employer in the context of collective agreement negotiations.

The law is proposed to take effect from 1 July 2024.