In response to the abolition of guaranteed wages in the Czech Republic, we submitted a complaint to the European Parliament. What exactly are (or were) guaranteed wages?
What are (were) guaranteed wages?
A guaranteed wage sets the minimum possible wage for various professions. These professions are divided into eight groups, which reflect the complexity, exertion, and responsibility associated with each profession.
In the table below, we provide examples of professions for each group, along with the minimum guaranteed wage level for 2024.
Group | Example of profession | Minimum guarantee wage level, CZK/month | Minimum guarantee wage level, CZK/hour |
1. | Kitchen helper, seamstress, cleaner, parcel delivery worker, and other unskilled jobs | 18.900 | 112.50 |
2. | Construction worker, warehouse worker, garbage collector, healthcare assistant, janitor, security guard, personal vehicle driver, housekeeper, and packaging line operator | 19.500 | 116,10 |
3. | Bricklayer, tinsmith, plumber, heating technician, repairer of electrical or thermal appliances, barber, hairdresser, salesclerk, cashier, waiter, bartender, invoicing clerk, auto mechanic, subway train operator, dental nurse | 21.300 | 126,80 |
4. | General nurse, midwife, plumber, heating technician – more complex tasks, tour guide, interpreter, liaison with foreign partners, accountant, maintenance worker for simpler equipment and buildings, train driver on secondary lines | 21.800 | 129,80 |
5. | Bus driver for more than 16 passengers, supervisor, dispatcher, paramedic, human resources and payroll accountant, tax expert, IT administrator, preschool teacher, driving school instructor, construction project designer | 24.100 | 143,30 |
6. | Sales representative, network administrator, IT systems architect, independent designer of large and complex construction projects | 26.600 | 158,20 |
7. | Financial expert, marketing specialist, IT expert, software developer, physician, dentist, pharmacist | 29.400 | 174,70 |
8. | Financial and commercial director, financial and capital market broker, complex creative system work | 37.800 | 225,00 |
A bus driver or a teacher at a private preschool is guaranteed to receive at least CZK 24,100 per month for full-time work. But just this year.
What will change in January 2025?
However, as of August 1, 2024, a revision to the labour code came into effect, which includes the abolition of guaranteed wages in the private sector. In practice, this means that starting January 1, 2025, private sector employers will have only one wage threshold to consider: the minimum wage.
The abolition of guaranteed wages was attached to the amendment of the labour code implementing the EU Directive on Adequate Minimum Wages. We consider this move entirely incorrect. Moreover, we are convinced that it goes against the intent of the transposed directive.
European directive on adequate minimum wages
As our lawyer Jaroslav Stránský reminded during the meeting of the Committee on Social Policy of the Chamber of Deputies of the Czech Parliament, the directive includes a provision stating that its implementation must not reduce the level of protection for employees. However, in the Czech Republic, due to a political decision by the government parties, the level of protection will be reduced or rather abolished.
The proposal to abolish guaranteed adequate wages was adopted by the Government in violation of Article 7 of the Minimum Wages Directive, which mandates the involvement of social partners in setting and updating statutory minimum wages. Contrary to the principles of standard social dialogue, the Government made its decision unexpectedly, without prior consultation with social partners (a different version of the proposal was discussed with social partners during the consultation process).
What steps have we taken?
On behalf of ČMKOS, we have made strenuous efforts to prevent the abolition of guaranteed wages:
- Throughout the entire legislative process, we argued and persuaded lawmakers to prevent the abolition of guaranteed wages.
- We reached out to members of the Social Committee of the Chamber of Deputies of the Czech Parliament with a detailed explanation of the issue and pointed out potential conflicts with EU law.
- We participated in the discussion of the amendment to the Labor Code in the Social Committee of the Chamber of Deputies of the Czech Republic on June 5, 2024. We presented arguments in favor of maintaining guaranteed wages. The members of the Social Committee did not take a position on the amendment proposal to maintain guaranteed wages—they neither voted for its adoption nor for its rejection. Most members of the Social Committee abstained from voting.
- After the amendment was rejected, we addressed members of the Senate of the Czech Parliament in the plenary session, urging them to prevent the incorrect transposition of the EU directive and to preserve guaranteed wages. We requested support from senators for an amendment that would maintain guaranteed wages.
- We participated in the meeting of the Senate’s Committee on Constitutional and Legal Affairs. Based on arguments related to the potential violation of EU law, the Committee on Constitutional and Legal Affairs supported the amendment and the preservation of guaranteed wages. However, the Senate plenary rejected this amendment.
- We approached the President of the Czech Republic, urging him not to sign the amendment to the labour code that abolishes guaranteed wages. This initiative was also unsuccessful. Therefore:
We filed a complaint with the European Commission!
In the complaint, we state, among other things:
„
The previously achieved level of employee protection in the private sector will significantly decrease compared to the former state, directly as a result of the EU directive’s transposition carried out by the adopted amendment to the labour code. The only safety net against excessively low income will be the minimum wage. There will be a deterioration in the previously achieved level of protection even for employees who were previously compensated at the level corresponding to the 2nd group of guaranteed wages. The situation will worsen even more for employees compensated by guaranteed wages in other wage groups prací.
“
We will keep you informed about further developments in this matter.