Payroll Newsletter - Archive 2024
You will find below all payroll and personal agenda related articles from 2024.
Other upcoming changes to the Labour Code
On 27.8.2024, a bill to amend the Labour Code was submitted to the deputies as Parliamentary Print 775/0. One of the objectives of the proposed amendment to the Labour Code is to increase the flexibility of the Labour Code in the interests of both employees and employers, to respond to the development and needs of the modern labour market and to strengthen the conditions for families with children.
Deductions from wages
On 3 September 2024, Act No. 252/2024 Coll., amending Act No. 182/2006 Coll., on bankruptcy and methods of its resolution (Insolvency Act), as amended, Act No. 99/1963 Coll., Civil Procedure Code, as amended, Act No. 119/2001 Coll., came into force, No 120/2001 Coll., on bailiffs and enforcement activities (the Enforcement Code) and on amendments to other acts, as amended, and Act No 312/2006 Coll., on insolvency administrators, as amended. A substantial part of this Act shall enter into force on 1 October 2024.
There is a change in the area of deductions from wages, both in insolvency and in enforcement.
There is a change in the area of deductions from wages, both in insolvency and in enforcement.
Amendment to the Labour Code
In connection with the adoption of Act No. 230/2024 Coll., several amendments were made to Act No. 262/2006 Coll., the Labour Code, as amended. The effective date of the law is August 1, 2024, but some changes do not take effect until January 1, 2025.
Employment of foreigners - Labour Office of the Czech Republic
If an employer employs foreigners, it is obliged to provide the Labour Office of the Czech Republic with information on the start or termination of their employment. In connection with the full digitalization of this obligation and on the basis of the amendment to Act No.435/2004 Coll. on Employment, employers must, from 1 July 2024, transmit information on foreigners to the Labour Office only in one of the following three ways (Section 87(5)):
Changes under discussion from 2025 - Initial occupational medical inspections
The Ministry of Health has prepared an amendment to Act No.373/2011 Coll., on Specific Health Services, concerning, among other things, initial occupational health inspections. The comment procedure has been completed and further developments are now awaited. The effective date of the amendment is proposed for 1 January 2025.
Records of agreements on work performance - changes from 1.7.2024
With effect from 1 July 2024, Act No. 163/2024 Coll. was approwed, which introduces a new obligation for employers in the area of sickness and pension insurance. This is the obligation to register employees who perform activities on the basis of a concluded agreement for the performance of work (DPP), including DPP on which no insurance premiums are deducted. The Czech Social Security Administration (CSSA) will now also register these employees in the register of insured persons, regardless of their monthly earnings.
Changes to the state contribution in the third pension pillar
As of 1 July 2024, there are changes concerning supplementary pension savings and supplementary pension insurance. The limits of the minimum contribution of the participant from which the state contribution is provided and the maximum contribution of the participant for which the maximum amount of the state contribution is provided are increased. The aim of this change is to motivate people to make higher monthly contributions in order to ensure that they have sufficient financial reserves for old age.
Minimum wage
As of 1.1.2024, the basic rate of the minimum wage has increased from CZK 17 300 to CZK 18 900 per month through Government Decree No. 396/2023 Coll., which amends Government Decree No. 567/2006 Coll., on the Minimum Wage, the Lowest Level of the Guaranteed Wage, the Definition of Aggravated Working Conditions and the Amount of the Wage Bonus for Aggravated Working Conditions, as later amended.
Increased pensions
Government Decree No. 286/2023 Coll. changes the basic amount of old-age, disability, widow’s, widower’s and orphan's pensions - for the year 2024 it amounts to CZK 4 400. The basic amount of the pension was thus increased by CZK 360 per month compared to 2023 for all pensions awarded before 1 January 2024.
Sickness insurance
The Ministry of Labour and Social Affairs (MLSA) in Announcement No. 313/2023 Coll. from 10 October 2023 increases the reduction limits for the adjustment of the daily assessment base (DAB) valid from 1 January 2024 for the calculation of the amount of sickness insurance benefits. The new reduction limits are as follows:
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