16
April 2025
End of Guaranteed Wage: What does It Mean for Your Company in 2025?
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
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!