2022 Results of ISPP in Enterprises
Remuneration – minimum monthly wage rates
The monthly wage rates were negotiated in less than 42% 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 enterprise collective agreements showed that the dynamics of monthly wage rates negotiated for the 12-scale tariff system has changed in comparison with 2021. While in 2021 the dynamics ranged from 5.5% to 6.6%, with the highest wage rate increases for the highest earners, in 2022 the dynamics slowed down slightly to between 4,7% and 5,7%. This year, the dynamics show an upward trend in all tariff levels, with the highest increase in wage tariffs recorded for low-income employees.
Further the analysis showed considerably different level of the minimum monthly wage rates in individual Trade Unions this year. While the wage level of employers who are part of Trade Union for UNIOS reaches only 25,326 CZK per month at the 12th tariff scale, employers of the Trade Union for Mines, Geology and Oil Industry pay 94% higher (49,073 CZK per month) wages at the same tariff.
Wage development
More than 71% of the analysed enterprise collective agreements regulate the field of wage development, of this 0,2% 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 70,8% of the ECA, which means a increase in ECA by 8,2 p.p. compared to 2021. 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 (19,7% ECA), by increasing wage scales (45,6% ECA), by maintaining real wage (9,7% ECA), by increasing total volume of wage funds (10,7% ECA), or by increasing the average real wage (1,1% ECA). An analysis of the data showed that in 2022 an increase of 4,4% 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 5,0%. 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 2,0%. This year, the increase in average real wages remained at about the same level as in 2021, while average nominal wages and wage tariffs rose by 1.2 percentage points.
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 2021.
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 43,8% ECA, for overtime work on public holidays (Saturdays and Sundays) at 31,8% ECA and for unspecified overtime work at 39,7% ECA. In the business sector, the average level of the agreed premium for overtime work on working days amounted to 26,3% of average wages and premium for overtime work on Saturdays and Sundays 47,4% of average wages.
An arrangement on wage supplement for night work is included in 82,9% 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 12,2% of average earnings with 51,1% 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 (40,8% ECA), when the average value of the premium amounts to 20 CZK per hour.
The premium pay for work on Saturdays and Sundays was agreed to in 79,4% of enterprise collective agreements. The average premium pay reached to 23,0% of average wages this year (72,9% ECA), which means that its value is similar as in 2021. If we compare the agreed values of this premium in individual trade unions, its level is the highest in the TU of Banking and Insurance with an average value amounting to 37,4% 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 of Catering, Hotels and Tourism and the TU of 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 102,6% of average wages.
58,8% 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 2021. In 2022 this premium amounts to 10,1 CZK per hour (agreed in 38,2% ECA), 10,4% of the basic rate of minimum wages (agreed in 17,6% ECA) or 10,7% of average wages (agreed in 5,2% ECA).
Canteen meals
The most frequent benefit provided to employees in enterprise collective agreements this year is the employer's contribution to canteen meals. The entitlement to this contribution was agreed in 94,8% of enterprise collective agreements in 2022. Of this number, almost 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 54,7% 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 52,9 CZK in 2022. In 12,7% 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 16,5 CZK per meal or 30,1% of the price of the meal. There is a sample of almost 24% 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 (more than 14% of the ECA), employees during a period of leave (1,9% 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, 66,6% of enterprise collective agreements contained this arrangement, when the average monthly employer contribution increased by 24 CZK compared to 2021 and amounts to 814 CZK. This year the minimum amount of allowance amounts to 640 CZK, and the maximum amount of the granted allowance amounts to 975 CZK. The data analysis showed significant differences in the amount of the contribution of employers covered by individual trade unions. While the maximum average value of the contribution of the employers covered by TU of Textile, Clothing and Leather Industry amounts to 413 CZK/month, this contribution is almost 3 times higher for the employers covered by Trade Union STAVBA and amounts to 1,291 CZK/month. The survey has shown that compared to 2021, this year has recorded a slight increase, by 0,9 p.p. in the number of enterprise collective agreements in which the payment of this contribution is conditioned by fulfilment of specific conditions (agreed in 53,2% ECA). This year’s survey disclosed a certain number of agreements (13,5% of enterprise collective agreements) in which this contribution is determined as a percentage of an employee’s monthly assessment base and averages 3,2%.
Life insurance
Life insurance contribution is agreed in 24,9% of enterprise collective agreements this year, which is approximately the same number of enterprise collective agreements as in 2021. The average amount of this monthly contribution provided by the employer decreased compared to 2021 by 3 CZK and amounts to 716 CZK per month. The minimum allowance amount granted this year is 580 CZK, and the maximum amount of such allowance amounts to 839 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 31,1% of organizations determine in their corporate collective agreements the creation of social funds and 17,3% 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%, like 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 2,295 CZK or 8,196 CZK for other social programmes. In 16,7% of all corporate collective agreements employers can draw the funds in the form of drawing accounts.
Working time
90,3% of enterprise collective agreements contain an agreement on working time, of which 59,0% specify uniform working time for the whole organization and 31,3% contain an agreement on different working times according to different systems of shift work.
Analysis of data has shown that in 78,0% 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 20,6% 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 (86,3% ECA), 2-shift system of work – 38.75 hours/week (70,2% ECA), multishift system of work – 37.5 hours/week (95,2% ECA) and in continuous system of work – 37.5 hours/week (88,5% ECA).
Leave
The Working conditions survey also monitors the range of the holiday leave for 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 89,6% of enterprise collective agreements this year. An extension of the holiday leave by one week is arranged in 78,0% of enterprise collective agreements and 2,8% of enterprise collective agreements extend the holiday leave by two weeks. The survey has shown that only 8,8% 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 4,4 days.