This is an overview of the news in the Czech Labour and Social Security law. We’ve divided the article into a section on the regular changes from the new year and an overview of the important recent legislative developments that you shouldn’t miss.
Regular changes
INCREASE OF THE MINIMUM WAGE1
From 1 January 2023, the minimum wage in the Czech Republic has increased to CZK17,300 (EUR720) per month or CZK103.80 (EUR4) per hour. The minimum guaranteed salary has also increased to reflect the increase in the minimum wage.
The increase in the minimum wage also affects income tax and social security allowances.
TRAVEL ALLOWANCES
With effect from 1 January 2023, a decree regulating the foreign meal allowance rates for 2023 was published in the Collection of Laws under no. 401/2022 Coll.2 The foreign meal allowance rates for 2023 were increased, for example, to EUR45 for Poland or EUR60 for Sweden and Denmark. In total, changes have been made for 25 countries.
Domestic travel allowances were affected by Decree no. 467/2022 Coll.3, which increased the rate of the allowance for the use of a private car to CZK5.20 (EUR0.22) per km. The amount of the domestic meal allowance is, as of 1 January 2023:
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