• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Email: accace@accace.com

Contact us
Sign up for news
  • Locations
  • Websites
    • Global (English)
    • Global (German)
    • Czech Republic
    • Germany
    • Hungary
    • Poland
    • Romania
    • Russia
    • Slovakia
    • South Africa
    • Ukraine
    • United States of America (USA)
  • eShop

Accace - Outsourcing and advisory services

  • Services
    • OUTSOURCING
    • Accounting and reporting
    • Accounting online portal
    • Payroll and HR administration
    • Payroll and HR online portal
    • Time and attendance online portal
    • ADVISORY
    • Tax advisory
    • Transaction advisory
    • Legal advisory
    • Corporate and secretarial
    • Advisory online portal
    • MARKET ENTRY SUPPORT
  • COVID-19
  • About us
    • Who we are
    • Case studies
    • Meet our key People
    • Partner with us
    • Corporate Social Responsibility
  • Careers
    • Open positions
    • Who we are
    • Our values
    • Success stories
    • How we care
    • How we act
    • We volunteer
  • Newsroom
  • Events
  • Locations

Employment law news in the Czech Republic | News Flash

9 Jan 2019

Download PDF

With the new year 2019 there are many changes in the Czech Republic and will not avoid the area of employment law. For example, do you know which indicators will be affected by the increased minimum wage?

Minimum wage, average wage and related indicators

On 1 January 2019 the minimum wage was increased to CZK 13,350 (increase by CZK 1,150), and the average wage was increased to CZK 32,699 (increase by CZK 2,720). These changes have resulted in an adjustment of both the assessment basis and the minimum monthly levies for health and social security insurance.

2018 2019
Minimum wage CZK 12,200 CZK 13,350
Average wage CZK 29,979 CZK 32,699
Minimum monthly wage for payment of sickness and pension levies
(1/10 of the average wage)
CZK 2,500 CZK 3,000
Maximum assessment basis for payment of social security levies
(48 times the average pay)
CZK 1,438,992 CZK 1,569,552
Minimum monthly pension levies for self-employed persons
(29,2% from 1/4 of the average wage)
CZK 2,189 CZK 2,388
Minimum monthly health insurance levies for self-employed persons
(13,5% from 1/2 of the average wage)
CZK 2,024 CZK 2,208

Small scale employment

(within the meaning of the Sickness Insurance Act 187/2006 Sb.)

From 1 January 2019 the limit for monthly wage under which neither health insurance nor social security levies are paid, which gives no rise to sickness insurance benefits and which is not included in the period used for calculation of regular or disability pension benefits is being increased from CZK 2,500 to CZK 3,000/month.

The limit for payment of withholding tax remains at CZK 2,500/month.

Compensation for loss of earnings after the end of sick leave

Criteria for calculation of compensation for loss of earnings paid to jobseekers are specified in more detail: the calculation is based on fictional post-injury earnings which equal to the minimum wage and in order to clarify a frequently disputed issue, it is expressly stated that the minimum wage shall be understood as the minimum wage applicable as of the date of entry of the respective jobseeker in the official jobseeker database.

Cancellation of the initial exclusion period for sickness insurance

There is a bill proposing that employers shall pay their employees compensation for the first three days of sick leave in the same amount as they pay for the 4th to 14th day of sick leave; to compensate for this, employers will be required to pay lower sickness insurance levies; the change is expected to be effective from 1 July 2019.

Cancellation of initial exclusion period Currently Planned from 1 July 2019
Social security levies paid by employers 25% 24.8%
Sickness insurance levies paid by employers/ self-employed persons 2.3% 2.1%
Compensation for first three days of sick leave
(from the daily assessment basis)
0% 60%
Compensation for the 4th to 14th day of sick leave
(% from the daily assessment basis)
60% 60%

The bill has been approved by the Chamber of Deputies but has not passed through the Senate. The Chamber may overrule the Senate, however, the date for the bill to be reconsidered in the Chamber has not been set yet.

Case law

An employee may be entitled to a severance pay of twelve times the average monthly earnings even if their employment was terminated by the employee.

If an employee is no longer able to work at the agreed position due to an occupational injury or disease as foreseen in Sec. 52 d) of the Labour Code and there is an agreement to move the employee to another position, the employee has not been assigned to another position under Sec. 41 (1) a) of the Labour Code and the employment has not been terminated by the employer under Sec. 52 d) of the Labour Code, the employee is entitled to terminate the employment and to receive the statutory severance pay, despite Sec. 67 (2) of the Labour Code expressly providing for severance pay only in case of termination by the employer or a mutual agreement on termination (decision of the Supreme Court from 30 January 2018, ref. no. 21 Cdo 5825/2016).

Other proposed changes:

  • extension of annual leave to 5 weeks,
  • introduction of maternal and parental care instead of maternal and parental leave; currently under consideration in the Chamber of Deputies.

Currently under consideration in the Chamber of Deputies.

In case of specific questions please contact our experts. We will be pleased to advise you!

Contact us to find out how can we work together!

CONTACT

Andrea Drhová
Senior Associate | Accace Legal s.r.o., Czech Republic
Tel: +420 222 753 480
E-mail: andrea.drhova@accace.com

Related news

Value-added tax in Slovakia | eBook

on 13 January 2021, in Country guidelines and eBooks, Slovakia, Taxation
Read more

Value-added tax in the Czech Republic | eBook

on 08 January 2021, in Country guidelines and eBooks, Czech Republic, Taxation
Read more

2021 Transfer Pricing Overview for the Czech Republic

on 07 January 2021, in Country guidelines and eBooks, Czech Republic, International transactions
Read more

2021 Tax Calendar | Czech Republic

on 07 January 2021, in Calendars, Czech Republic, Other industries, Taxation
Read more

Changes in travel reimbursement in the Czech Republic from 1 January 2021 | News Flash

on 05 January 2021, in Czech Republic, News Flash, Other industries, Payroll, HR and Labour Law, Regional Studies
Read more

Minimum, average and guaranteed wage for 2021 in the Czech Republic | News Flash

on 04 January 2021, in Czech Republic, Local news, News Flash, Other industries, Payroll, HR and Labour Law
Read more

Czech Tax Package 2021: Overview of Proposed Changes | News Flash

on 10 December 2020, in Czech Republic, Local news, News Flash, Other industries, Taxation
Read more

Hard Brexit from the Czech point of view: VAT and customs duty application from 1.1.2021 | News Flash

on 09 December 2020, in Czech Republic, Local news, News Flash, Other industries, Taxation
Read more

Doing business in the Czech Republic is about to get easier | weBlog

on 19 November 2020, in Articles and expert opinions, Czech Republic, Local news, Other industries, WeBlog
Read more

Czech approach to the impacts of Brexit on premiums as of January 2021 | News Flash

on 13 November 2020, in Czech Republic, Local news, News Flash, Other industries, Taxation
Read more

Abolition of real estate acquisition tax and planned tax amendment for 2021 in the Czech Republic | News Flash

on 15 October 2020, in Czech Republic, Local news, News Flash, Other industries, Taxation
Read more

How to correctly calculate the average earnings in the Czech Republic? | News Flash

on 05 October 2020, in Czech Republic, News Flash, News per country, Other industries, Payroll, HR and Labour Law
Read more

Coronavirus from the perspective of Czech labour law | eBook

on 19 March 2020, in Country guidelines and eBooks, COVID, Czech Republic, Local news, Other industries, Payroll, HR and Labour Law
Read more

Report on relations in the Czech Republic

on 16 March 2020, in Accounting and finance, Czech Republic, Legal and corporate, Local news
Read more

2020 Tax Guideline for the Czech Republic

on 24 January 2020, in Country guidelines and eBooks, Czech Republic, Taxation
Read more

2020 Company Formation in the Czech Republic

on 24 January 2020, in Country guidelines and eBooks, Czech Republic, Legal and corporate
Read more

“Quick fixes“ – VAT news for 2020 in the Czech Republic | News Flash

on 22 January 2020, in Czech Republic, News Flash, Other industries, Payroll, HR and Labour Law
Read more

Czech reporting obligation for income paid abroad – reminder | News Flash

on 08 January 2020, in Czech Republic, News Flash, Other industries, Regional Studies, Taxation
Read more

Labour Law and Employment in the Czech Republic – 2021 Guide

on 07 January 2020, in Country guidelines and eBooks, Czech Republic, Payroll, HR and Labour Law
Read more

2020 payroll calculator for the Czech Republic

on 04 January 2020, in CALCULATORS 2020, Czech Republic, Payroll, HR and Labour Law
Read more

Primary Sidebar

<< Back to newsroom

NEW TO THE MARKET?

Use the free consultancy delivered by our in-country experts to get you prepared.

See what is included and schedule your call now!

We only need your email

Footer

About Accace

Originally established in Central and Eastern Europe in 2006, Accace ranks among the leading outsourcing and consultancy providers in the region. Engaging over 600 experts, we have vast experience with handling small to large scale, multi-country outsourcing projects and providing a comprehensive range of our services to over 2,000 customers.

About Accace Circle

Accace operates internationally as Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience. Covering almost 40 jurisdictions with over 2,000 professionals, we support more than 10,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and process at least 170,000 pay slips globally.

Locations and contacts | Accace Circle

Our services

Accounting and reporting
Payroll and HR administration
Tax advisory
Transaction advisory
Legal advisory
Corporate and secretarial

Our eShop

Market entry support
See full list of services

Our online portals

Accounting portal
Payroll and HR portal
T&A portal
Advisory portal

Get in touch with us

Locations and contacts
Contact us
Sign up for news
Newsroom
Careers


Follow us

Facebook LinkedIn Twitter Instagram Youtube


Accace Circle

© Accace all rights reserved | Code of conduct | General Disclaimer | Disclaimer Newsroom | Cookie policy | Privacy policy | GDPR Statement

Get free access to
valuable insights
expert knowledge

Our legislation updates make it easy for you to keep on top of the latest changes affecting your business. Receive our articles, opinions, tips, industry news, country profiles, regional overviews and studies, latest events and even more, directly into your mailbox.

Check out our Newsroom to see what is included!

We only need your email

We will send you only relevant information we consider may be of your interest and treat your personal data in compliance with our Privacy policy and GDPR statement.

Unable to subscribe?  Try this page.

This site uses cookies. By continuing to browse the site, you are agreeing to our use of cookies. Find out more.