Recent developments in the Czech Republic
Employment law is always changing, and keeping up with it is a lot of work. Thankfully, our team is always working to stay abreast of the latest changes, so you don’t have to. Here are some of the newest developments in the Czech Republic.
Increased insurance rate (2024)
Effective January 2024, the employee’s insurance rate increased by 0.6%, bringing the total employee contribution rate for social security to 7.1% (previously 6.5%). The employer’s rate remains unchanged at 24.8%.
Increase in minimum wage (2024)
As of 1 January 2024, the minimum wage in the Czech Republic was increased to CZK 20,000 per month, up from CZK 18,000 per month. This change was implemented through Government Decree No. 456/2024. The increase aims to improve the living standards of low-income workers and to address the rising cost of living in the country.
Extended parental leave for temporary workers (2024)
An amendment to the Czech Labour Code effective from 1 July 2024 means that temporary agency workers now have a right to 32 weeks of parental leave, instead of the previous 28 weeks.
Introduction of remote work legislation (2024)
In June 2024, the Czech government introduced a new act concerning remote work in the Czech Republic. Under the new rules, employers must provide remote employees with the necessary equipment to work from home, and reimburse them for any expenses incurred through remote work. The law also includes provisions for flexible working hours and mandates that employers respect employees’ right to disconnect outside of working hours.
New protections for whistleblowers (2023)
The Czech Whistleblowing Act came into force in August 2023. This act requires employees with 50 or more employees to put in place internal reporting channels that employees can use to disclose concerns. It also provides protection for whistleblowers from all forms of retaliation, including dismissal, demotion, and harassment.
