Higher minimum and guaranteed wages

From 2024, the minimum monthly wage rises to CZK 18,900. If you pay employees based on hours worked, from 1 January 2024 you must pay them at least CZK 112.50/hour. These minimum rates apply to all your employees, regardless of whether they work under a regular employment contract, a DPP agreement or a DPČ agreement.

The minimum wage increase also raises wages in the guaranteed wage categories. This time, the increase affects categories 1, 2, 3 and 8. Consider whether you should give yourself or your employees a raise from January. Conversely, if you are an employee, do not be afraid to request the adjustment to which you are legally entitled. 😉 The list of categories and new minimum wage thresholds is in the Ministry of Labour and Social Affairs press release. 

Neither the minimum nor guaranteed wage applies to managing directors working for their companies under an executive service agreement. Their work is not governed by the Labour Code, so they need not meet these minimums. 🙂

Higher employee social insurance contributions

Another change is the increase in social insurance contributions paid by employees from 6.5% to 7.1%. The employee will still cost the employer the same amount. The difference will be lower net pay for the employee and a higher payment to the district social security administration. This increase will first appear in January wages, paid to employees in February.

Employee meal contributions

From 2024, the rules change and are unified for all employee meal contributions. The new meal contribution threshold is CZK 116.20 per shift worked. This threshold applies both to cash meal allowances and to traditional meal vouchers.

Business travel reimbursement – domestic meal allowances

As every year, domestic meal allowance rates have increased. For 2024, the following amounts apply:

  • 140-CZK 166 when the business trip lasts 5–12 hours,
  • 212-CZK 256 when the business trip lasts 12–18 hours,
  • 333-CZK 398 when the business trip lasts more than 18 hours.
Business travel reimbursement – foreign meal allowances

If your employee travels abroad on business, they are also entitled to a foreign meal allowance. The country-by-country rates for 2024 can be found here. 

Business travel reimbursement – own car

There has also been an increase in reimbursement for using an employee’s own car on a business trip. The mileage allowance (compensation for vehicle wear and tear) has risen to CZK 5.60/km. If you reimburse employees for fuel using the statutory prices, take note: these have also increased from 2024:

  • CZK 38.20 per litre of 95-octane petrol
  • CZK 42.90 per litre of 98-octane petrol
  • CZK 38.70 per litre of diesel
  • CZK 7.70 per kilowatt-hour of electricity

I hope this article has helped you make sense of the changes. 🙂 If you have further questions, do not hesitate to get in touch.