The wage criteria in the Qualified Worker Program will change from January 1, 2025, replacing the minimum wage requirement of 1.2 times the guaranteed wage with a new criterion of 1.4 times the minimum wage, EU Helpers reports.
The decision comes following a preliminary agreement to change the wage criteria in the Qualified Worker Program reached by responsible ministries: the Ministry of Labor and Social Affairs (MPSV), the Ministry of Foreign Affairs (MZV), the Ministry of Industry and Trade (MPO), and the Ministry of the Interior (MV ČR).
Increase in Wages for Czech Employees as Well
In order to meet the needed conditions of the Program, companies would have to offer international workers a gross wage starting at CZK 29,120 (€1,148.78), excluding bonuses, which is a notable increase compared to current wages.
In addition, the companies will also need to increase wages for Czech employees as well, according to a report from Svet Prumisly.
Such a move could have a negative impact on businesses after they are not prepared for these additional costs starting from next year.
The new changes mean that if a company that employs a total of 1,500 workers, 200 of whom come from other countries through the Qualified Worker Program, currently has a base wage of CZK 24,500 (€966.57), from January, would need to increase the base wage for all employees to CZK 29,120 (€1,148.92).
A surge of CZK 4,620 (€182.25) for 1,500 employees translates into a cost of CZK 6,930,000 (€284,130). Including social security as well as health insurance contributions, annual wage costs would surge by a total of CZK 111,268,080 (€4,561,991.28).
The ministries mentioned above will continue discussions in this regard that are set to happen during this week and the next one.