Minimum wage and three-shift operation 2021
Author of the article: ARROWS law firm (Mgr. Jakub Oliva, LL.M., MSc., office@arws.cz, +420 245 007 740)
This article was written in 2020. If you are looking for up-to-date information on this topic, please do not hesitate to contact us at office@arws.cz or by phone at +420 245 007 740. We will be happy to advise you.
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Minimum wage will jump again
As in the previous year, 1 January 2021 will bring an increase in the minimum and guaranteed wage. The lowest possible remuneration for work should rise to CZK 15,200 per month or CZK 90.50 per hour of work (gross).
However, this rate applies only to professions that are classified in the first group in accordance with Government Regulation No. 567/2006 Coll. Other jobs that are more complex, more strenuous and entail greater responsibility also have a minimum rate set much higher.
Attention to shift work
In practice, it is often forgotten that these rates only apply to a standard 40-hour week. In fact, the regulation quoted above clearly states that: 'If the duration of the fixed weekly working time is different from 40 hours, the hourly rates of the minimum wage and the minimum level of the guaranteed wage shall be increased in proportion to the reduction in the weekly working time'. But what does this actually mean in practice?
If we look at common manufacturing occupations, the government regulation classifies these occupations most often in job group 3. Thus, each such worker should receive at least CZK 110.30 per hour. But is this really always the case?
Almost every production plant operates in a multi-shift mode. Whether it is two or three shifts, the hourly minimum and guaranteed wages must be recalculated!
If the hourly wage in the third group is CZK 110.30, this only applies to 40 hours per week. For a fixed working week of 37.5 hours per week, this hourly rate will be higher.
Calculation formulae
A simple formula for the calculation is then as follows:
Two-shift working pattern
( 40 / 38.75 ) * Hourly guaranteed wage
Three-shift working pattern
( 40 / 37.50 ) * Hourly guaranteed wage
For a worker who works three shifts in production and is in the third group (see above), the calculation is then as follows:
( 40 / 37.5 ) * 110.30 = 117.65 CZK/hour.
Pay attention to fines
According to Section 112(3) of the Labour Code, if the employee's wage does not reach the relevant level of the guaranteed wage, the employer is obliged to provide the employee with an additional payment. Failure to do so exposes the employee to the risk of a substantial fine from the labour inspection authorities.
At the same time, the fines for breaches of the rules on remuneration of employees, which include the above-mentioned issues, can reach up to millions of crowns (the maximum possible amount is CZK 2,000,000).