16
April 2025

End of Guaranteed Wage: What does It Mean for Your Company in 2025?

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The year 2025 brings a significant change in employee remuneration. The guaranteed wage, which previously determined minimum earnings in the private sector, is a thing of the past. What does this mean for your company and how to prepare for this change?

What Changes from January 1, 2025?

  • The guaranteed wage in the private sector is abolished
  • The only legal limit for remuneration remains the minimum wage
  • The minimum wage for 2025 is CZK 20,800 per month or CZK 124.40 per hour

What Are the Benefits of Abolishing the Guaranteed Wage?

1.  Greater Flexibility: You can more flexibly set the wage policy in your company
2. Reduced Administrative Burden: The obligation to compare the employee's wage with the guaranteed wage is eliminated
3. Increased Competitiveness: You have greater freedom in setting wages

What to Watch Out For?

  • Prohibition of Discrimination: Despite greater freedom, you must adhere to the principle of equal treatment
  • Minimum Wage: The employee's wage must not be lower than the legally established minimum
  • Collective Agreements: Check if your existing agreements refer to the guaranteed wage

Need Advice?

Changes in the Labor Code can be complex. Our law firm can help you:

  • Prepare labor law documentation
  • Prepare communication with employees
  • Resolve potential disputes and ambiguitie
 
🔍 Want to know more? Take advantage of our efficient online consultation!

We offer a 25-minute online consultation starting at 1,200 CZK.

1.     🗓️ Book your online consultation appointment directly here: Online Consultation
 
2.    📝 Request legal services through our contact form here: Contact Form


Ensure your company is prepared for changes in remuneration. With our help, you will have the certainty that you are proceeding in accordance with the new Labor Code!