2016 Results of ISPP in Enterprises
Remuneration – minimum monthly wage rates
The monthly wage rates were agreed on in more than 51% of Enterprise Collective Agreements (ECA) this year. As some employers agree on ranging from-to wage rates in their ECA, the Working Conditions Survey (IPP) monitors only the lowest level of the relevant tariff scale.
The survey results of ECA in 2016 showed that the dynamics of monthly wage rates negotiated for the 12-scale tariff system has changed in comparison with 2015. While in 2015 the growth rates ranged from 3.0% to 4.8% and the highest increase was recorded in wage tariffs of middle income employees, in 2016 the growth accelerated significantly at lower tariff levels and reaching a level of 2.7% to 5.8%. The dynamics keeps growing tendency this year in the first to eighth tariff scales, while for employees with high incomes there was a slight decline.
It is interesting to see a comparison of minimum monthly wage tariffs between employers with the lowest and highest level of such tariffs. While the level of wage rate of employers who are part of Trade Union (TU) for Transport reaches only 20,066 CZK per month in the 12th tariff scale, employees of the Trade Union for Mines, Geology and Oil Industry are in the same tariff scale paid by about 74% higher (34,820 CZK per month).
Wage development
More than 66% of the analysed enterprise collective agreements regulate the field of wage development, of this 1.2% of the ECA in the form of maintaining the level of the average wage. This year, a growth of any of the wage forms is included in 64.9% of the ECA, which means an increase in ECA by 6.4% compared to 2015.
The increase wage is not expressed by one figure in enterprise collective agreements, but is represented by several different forms - by increasing the average nominal wage (25.6% ECA), by increasing wage scales (31.6% ECA), by maintaining real wage (12.1% ECA), by increasing total volume of wage funds (8% ECA), or by increasing the average real wage (1.5% ECA). An analysis of the data showed that in 2016 an increase of 3% was agreed to in enterprise collective agreements regulating wage increases by increasing the average nominal wage. In ECA in which social partners regulate wage trends by increasing wage scales, the average agreed increase amounts to 3.4%. Hence this year, the growth of the agreed wage tariffs and the average nominal wage remained approximately on the same level as in 2015. As concerns agreements in which the wage development is agreed in the form of an increase of the average real wage, the average agreed increase amounts to 1.8%.
Level of most frequently used premiums
The premiums are an integral and important part of enterprise collective agreements. The survey information on working conditions focuses especially on premiums, which appear most frequently in enterprise collective agreements. Such premiums include namely premiums for overtime work, night work, work on Saturdays and Sundays, work on public holidays and work in difficult conditions. Regarding the number of ECA and an average agreed amount of extra pay, these levels remain on the same level as in 2015.
Almost 84% of enterprise collective agreements include the amount of premium for overtime work. This year a premium for overtime work was agreed to on working days at 42.1% ECA, for overtime work on public holidays (Saturdays and Sundays) at 30.8% ECA and for unspecified overtime work at 41.3% ECA. In the business sector, the average level of the agreed premium for overtime work on working days amounted to 26.1% of average wages and premium for overtime work on Saturdays and Sundays 48.3% of average wages.
An arrangement on wage supplement for night work is included in 82% of enterprise collective agreements and its minimum amount is at least 10% of the average earning pursuant to Section 116 of Act No. 262/2006 Coll.
The analysis evaluated the average value of the premiums in enterprises at the level of 11.2% of average earnings with 43.2% of ECA. This premium can be agreed, in accordance with the option stipulated in Sec. 116 of the Labour Code, in a different way, for example in hourly rates (47.7% ECA), when the average value of the premium amounts to 15 CZK per hour.
The premium for work on Saturdays and Sundays was agreed to in 78.2% of enterprise collective agreements. This year the average nationwide amount of the premium has amounted to 23.6% of average wages (70.9% ECA), which means that its value is approximately at the same level as in 2015. If we compare the agreed values of this premium in individual trade unions, its level is the highest in the TU for banking and insurance with an average value amounting to 36.9% of average wages. On the contrary, the lowest level of this premium in the amount of 10% of average wages is shown with the TU for catering, hotels and tourism and the TU for postal, telecommunication and newspaper services.
Almost 76% of enterprise collective agreements include an agreement for contracting parties on the premium for work on public holidays, where the average amount of this premium amounts to 101.7% of average wages.
59.5% of enterprise collective agreements include an agreement on the provision of the premium for work in difficult conditions. The analysis recorded that this year maintain the average value of this premium at approximately the same level as in 2015. In 2016 this premium amounts to 7.7 CZK per hour (agreed in 45.4% ECA), 10.6% of the basic rate of minimum wages (agreed in 11.4% ECA) or 10.7% of average wages (agreed in 4.3% ECA).
Canteen meals
The most frequent benefit provided to employees in the enterprise collective agreements this year is the employer's contribution for canteen meals. In 2016, the claim for this contribution was agreed in 96% of the enterprise collective agreements, which means an increase by 0.5% of ECA compared to 2015.
Of this number, more than half of all employers make a contribution towards canteen meals from expenses in crowns or as a percentage of the meal price. The average amount of the contribution determined as a percentage of the meal price equals 54.6% and approximates the maximum amount specified in Sec. 24 (2)(j)(4) of Act No. 586/1992 Coll., the Income Taxes Act, as amended, for recording these contributions in expenses. The amount of the price paid from the employer's expenses then amounts to 38 CZK in 2016. In 16.7% of the ECA, employers contribute to their employees for canteen meals also from a social fund or another fund created from profit. The average contribution agreed to here amounts to 13 CZK per meal or 21.7% of the price of the meal. There is a sample of more than 25% ECA in the survey that contain an agreement on the provision of the canteen catering allowance; however, they do not stipulate the actual amount of such allowance.
This year, the employer's contribution for canteen meals was agreed also for former employees (almost 15% of the ECA), employees during a period of leave (2.5% ECA) and employees during the period of temporary inability to work (almost 2% ECA).
Employer’s pension plan
Arrangements for the provision of employer contributions towards a pension plan have become another important part of enterprise collective agreements. This year, 60.6% of enterprise collective agreements contained this arrangement, when the average monthly employer contribution increased by 23 CZK compared to 2015 and amounts to 602 CZK. This year the minimum amount of allowance amounts to 463 CZK, and the maximum amount of the granted allowance amounts to 736 CZK. An analysis of the data showed significant differences in the amount of the contribution for employers covered by individual trade unions. While the maximum average value of the contribution for the employers covered by TU for Textile, Clothing and Leather Industry amounts to 329 CZK/month, for the employers covered by Trade Union of Aviation the contribution is almost 4 times higher and amounts to 1,250 CZK/month. The survey has shown that compared to 2015, this year has recorded a slight growth, by 1.3% in the number of enterprise collective agreements in which the payment of this contribution is conditioned by fulfilment of specific conditions (agreed in 46.9% ECA). This year’s survey disclosed a certain number of agreements (13.3% of enterprise collective agreements) in which this contribution is determined as a percentage of an employee’s monthly assessment base and averages 3%.
Life insurance
This year, 23.6% of enterprise collective agreements include the provisions of a contribution towards life insurance, which is approximately the same number of enterprise collective agreements as in 2015. The average amount of this monthly contribution provided by the employer increased compared to 2015 by 17 CZK and amounts to 580 CZK per month. The minimum allowance amount granted this year is 468 CZK, and the maximum amount of such allowance amounts to 686 CZK.
Social fund
To ensure certain social needs of employees, employers can create a social fund or they can use other social programmes (without differentiation of financial resources). The survey implies that 35.9% of organizations determine in their corporate collective agreements the creation of social funds and 16.4% of organizations create other social programmes. The data analysis has shown that the creation of the social fund is in this year mostly subject to the volume of wages paid, when its average level is 1.9%, as well as for the other social programmes. Should the organizations use the appropriations to the social fund in the form of an absolute sum per one employee from profit, such sum amounts to 1,794 CZK or 5,873 CZK for other social programmes. In 10.8% of all corporate collective agreements employers can draw the funds in the form of drawing accounts.
Working time
93.8% of enterprise collective agreements contain an agreement on working time, of which 64.9% specify uniform working time for the whole organization and 28.9% contain an agreement on different working times according to different systems of shift work.
Analysis of data has shown that in 76.9% of enterprise collective agreements, which stipulate uniform working time for the whole organization, the weekly working hours of 37.5 hours/week have been agreed to, while working hours of 40 hours/week have been agreed to in only 22.1% of enterprise collective agreements.
Regarding work in a shift system, the weekly hours have been agreed to as follows: 1-shift system of work - most often the working hours have been agreed to at 40 hours/week (82.6% ECA), 2-shift system of work – 38.75 hours/week (67.4% ECA), 3-shift system of work – 37.5 hours/week (94.8% ECA) and in continuous system of work – 37.5 hours/week (86.1% ECA).
Leave
The Working conditions survey also monitors the range of the holiday leave of employees, providing above the limit specified by the Labour Code, according to which the basic claim for the holiday leave amounts at least to 4 weeks per calendar year. The extended holiday leave was provided in 85.8% of enterprise collective agreements this year. An extension of the holiday leave by one week is arranged in 75.7% of the enterprise collective agreements and 1.9% of the enterprise collective agreements extend the holiday leave by two weeks.
The survey has shown that only 8.2% of enterprise collective agreements contain an agreement on an increase of leave entitlement in days. The average number of days by which leave was increased amounts to 4 days.