Amendment to the Minimum Wage Act
On 2 July 2019, the government adopted a draft amendment to the law on minimum wages. The most important change in relation to the current regulations is the arrangement of the issue of length-of-service allowance.
After the new regulations come into force, the length-of-service allowance will no longer be included in the minimum remuneration for work. The aim is to ensure a transparent model of remuneration for employees receiving the lowest level of remuneration. The new rules will apply from 1 January 2020, while the transitional rules will apply from 1 September 2019.
According to the legislator, the length-of-service allowance is defined as:
an allowance to be paid to an employee for reaching an agreed period of employment, in accordance with the principles set out in separate regulations, a collective agreement, another collective agreement based on the act, remuneration regulations, a statute defining the rights and obligations of the parties to an employment relationship, an employment contract or a cooperative employment contract.
Examples of the length-of-service allowances:
- Self-government employees - long-term work allowance
- Civil service members - supplement for long-term civil service employees
- Teachers - length-of-service increment
- Employees of public higher education institutions - supplement for length of service
Find out more:
Changes to the Labour Law - processing of personal data