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Czech Republic: Industrial relations profile

 

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Pay and working time developments

Minimum wage

The national minimum wage CZK 8000 was set on 1 January 2007 by Government Resolution No. 567/2006. No changes were registered since then. A higher standard of the minimum wage can also be set by CLCAs (in 2011 by 9.5% of CLCAs, within the ČMKOS), but NOT by HLCAs.

  • minimum wage is:
  • CZK 48.10 (€1.9) per hour for 40 hours a week;
  • CZK 8,000 (€310) a month for 40 hours a week.

The average monthly value of the minimum wage in 2011 agreed to in company-level collective agreements reached by the ČMKOS was CZK 9,821 (€ 393), more than 22.7% higher than the government-set minimum wage.

The minimum wage is differentiated for different groups of workers according to age and social condition. More specifically, workers under 18 receive 80% of the basic minimum wage, while those aged 18–21 years receive 90%.

Meanwhile, the minimum wage for an employee who receives a partial disability pension is equal to 75% of the basic minimum wage, and for an employee who receives a full disability pension or for a juvenile employee who is wholly disabled and does not receive a full disability pension, the minimum wage is set at 50% of the basic minimum wage.

Pay developments

In 2011, the average monthly nominal wage grew year-on-year by 2.2% to CZK 24,319 (€992). In 2010, the average monthly nominal wage was CZK 23,951, equivalent to €977 (year-on-year increase 2.0%), in 2009 CZK 23,488 (€959 – year-on-year increase 4.0%).

Although the increase for 2011 was more than in 2010 (+2.0%), it is the second most modest wage growth in the recent eleven years. This low increase along with the growing consumer inflation meant that the real wage had increased only by 0.3%, the lowest growth rate since 2000. In the fourth quarter it even declined on a year-on-year basis (-0.2%).

After a slow growth in the average real wage in the Czech Republic, the first decline occurred in the fourth quarter of 2011. In total, the average real wage decreased by 0.4% on the year-on-year basis.

  • A wage growth was negotiated only in three HLCAs out of 18 HLCAs concluded within ČMKOS for 2011 (2010: two HLCAs only). The year-on-year growth of the average nominal wage ranges from 1.7% to 2.7%.
  • A higher level of wages was successfully bargained for only in four HLCAs, i.e. in 23% of the total of the concluded agreements (in 2010 it was in 17.6%).
  • Some of the concluded HLCAs include a provision that a wage growth can be agreed between trade unions and employers taking into account the achieved productivity of work and economic limits of the respective employer (not quantified).
  • A wage development has been agreed on in approximately 56% of the CLCAs. Agreement on an increase in the average nominal wage and such commitments are contained in 21.7% of CLCAs in 2011 (in 2010 only 15.7% of CLCAs) and an increase in the wages in 18.4% of CLCAs.•

Source: Czech Statistical Office, CSO; Czech-Moravian Confederation of Trade Unions, ČMKOS

According to Eurostat, in 2010 the gender pay gap in an unadjusted form was 25.5% in the Czech Republic (last available information). This gap is slightly smaller in comparison with the situation two years ago.

Working time

The standard working time according to the Labour Code is 40 hours per week.

According to the ČMKOS, in 2011 41.1% of HLCAs (47.1% in 2010 and 47.1% in 2009) contain provisions for shortening working time without a reduction in wages to 37.5 hours per week. In 58.8% of HLCAs (52.9% in 2010 and 58.8% in 2009) a possibility is negotiated to extend holiday entitlement to 5 weeks (4 week according the Labour Code). Working hours (at least in one of the working regimes) was negotiated in 95% CLCAs (94.8% in 2010 and 94.7% in 2009). The average working week in CLCAs was 38 hours long (38.8 hours in 2010 and 38.0 hours in 2009).

Actual working time

1. According to Eurostat 40.3 hours in 2011 and 40.4 hours in 2010 (harmonised figures)

Source: Average number of actual weekly hours of work in main job, by sex, professional status, full-time/part-time and economic activity (from 2008, NACE rev.2), Code: lfsa_ewhan2

2. According to the CSO (Czech Statistical Office), Labour Force Survey, in 2011 the actual working time was 36.7 hours (employees, full time, annual average) and 37.2 hours in 2010.

 

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Page last updated: 18 April, 2013