Novorocni zvyseni minimalni mzdy i cestovnich nahrad

New Year's increase in minimum salary and travel allowances

With effect from 1 January 2023, i.e. on the regular date foreseen by the Labour Code, both the minimum salary rate and selected levels of the guaranteed salary, as well as the travel allowances when travelling for work or outside the regular workplace, have been increased.

Increased minimum salary and selected levels of the guaranteed salary

In light of salary and consumer price developments, the Government has increased by the regulation the base rate of the minimum salary for a 40-hour week from CZK 96.40 to CZK 103.80 per hour and from CZK 16,200 to CZK 17,300 per month.

Furthermore, the minimum level of the guaranteed salary for a weekly working time of 40 hours was increased for the first and eighth job group. For the first job group, the level of the guaranteed salary was increased in the same way as the minimum salary, i.e. from CZK 96.40 to CZK 103.80 per hour and from CZK 16,200 to CZK 17,300 per month. For the eighth job group, the level of the guaranteed salary was increased from CZK 192.80 to CZK 207.60 per hour and from CZK 32,400 to CZK 34,600 per month. For the other job groups, the lowest levels of the guaranteed salary remains the same.

Increased meal allowances, foreign meal allowances and other amounts in connection with travel allowances

Although the meal allowance and the average price of selected fuels were already exceptionally increased during the year 2022, in view of the continuous rise in prices, the Ministry of Labour and Social Affairs has changed these rates again on the regular date from the first day of the calendar year. 

The minimum amount of the meal allowance for private sector employees for each  day of a business trip was increased from 1 January 2023 as follows:

• CZK 129 if the business trip lasts between 5 and 12 hours;
• CZK 196 if the business trip lasts more than 12 hours but not more than 18 hours;
• CZK 307 if the business trip lasts more than 18 hours.

In case of state and other employees working for employers referred to in Section 109(3) of the Labour Code, the amount of the meal allowance per each day of a business trip was increased as follows:

• CZK 129 to CZK 153 if the business trip lasts between 5 and 12 hours;
• CZK 196 to CZK 236 if the business trip lasts longer than 12 hours, but no longer than 18 hours;
• CZK 307 to CZK 367 if the business trip lasts longer than 18 hours.

The Ministry of Finance has also modified by the regulation the basic rate of foreign meal allowance in foreign currency for selected countries. The increased base rate concerns, for example, Australia, where the base rate has been increased from USD 60 to USD 65, and Denmark, where the base rate has been increased from EUR 55 to EUR 60.

The Regulation also changed the average price of all fuels as follows:

• CZK 41.20 per litre of 95 octane petrol;
• CZK 45,20 for 1 litre of 98 octane petrol;
• CZK 44,10 for 1 litre of diesel fuel;
• CZK 6.00 for 1 kWh of electricity.

The rate of basic compensation per 1 km of travel has also been increased. The rate is at least CZK 1.40 for single-track motor vehicles and tricycles and at least CZK 5.20 for passenger road motor vehicles.

In view of the repeatedly increased daily rates of travel allowances, we recommend that employers consider these changes with respect to the agreed or stipulated lump-sum of monthly or daily amount of a travel allowance.

We keep monitoring further developments in the area of employment law and will keep you informed. If you would like more detailed information, please contact the authors of this article or other members of EY Law or the EY team with whom you work.

Authors:

Kateřina Suchanová

Hana Gutová