What changes brought by the amendment to the Labour Code on 1 January 2025

✔ Increase in the minimum wage and annual indexation
From 2025, the minimum wage increases (now set at CZK 20,800 or CZK 124.40/hour), with plans for annual indexation.

✔ Self-scheduling of working hours by employees
The amendment to the Labor Code introduces the option for employees to schedule their own working hours. This can be done based on a written agreement with the employer, who must define the length of the balancing period (26/52 weeks) as per the Labor Code.

✔ Changes in employment of persons with disabilities (PWD)

• Cap on subsidies for additional employment costs: The maximum subsidy for additional costs of employing PWD will now be limited to 0.8 times the quarterly amount of the corresponding wage subsidy. Caps on wage costs for operational assistants are set at 1.5 times the average national wage.
• Differentiation in mandatory contributions: New differentiated contributions to the state budget apply to employers failing to meet the mandatory quota for employing PWD:
  • 1× average wage if at least 3% of the quota is fulfilled through direct employment.
  • 2× average wage if at least 1% is fulfilled through direct employment.
  • 3.5× average wage if less than 1% is fulfilled through direct employment.

✔ Employees receiving a full old-age pension
From January 2025, individuals receiving a full old-age pension can request a 6.5% discount on their pension insurance contributions from their employer, increasing their net income. Simultaneously, the possibility to increase the pension for concurrent employment is being abolished. Find out more information.

✔ Changes in sickness insurance

• Digitalization of all sickness insurance benefits: Processes will now be digitalized, similar to the "e-neschopenka" system. More information: e-benefits nursing benefits (e-dávky ošetřovné), e-benefits long-term nursing benefitsm (e-dávky dlouhodobé ošetřovné), e-benefits maternity benefits (e-dávky peněžitá pomoc v mateřství), e-benefits paternity benefits (e-dávky otcovská)
• Care allowance for employees under agreements performed besides the employee relationship: Employees working under agreements performed besides the employee relationship will be eligible for care allowance, if they are covered by sickness insurance.
• Counting study periods toward maternity benefits: Study periods, including interrupted studies, will count toward the 270 days of insurance required for maternity benefits, helping students meet the eligibility criteria.
• Threshold amount for an Agreement to complete a job: The threshold amount for sickness insurance coverage for employees under the Agreement to complete a job will be CZK 11,500 per month starting 1 January 2025. For the agreement to perform a work, the applicable amount has been increased to CZK 4 500 per month.

Additional information on sickness insurance: Sickness insurance benefits (CSSA)

 

Details about salaries at Mendel University can be found here.

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