Dec 05, 2023

Czech Government Proposes Compensation Scheme for Home Office Workers

In a bid to adapt to the evolving work landscape, the Czech government has introduced a new initiative to compensate home office workers.

Starting in January next year, employers are recommended to provide an additional CZK 4.50 per hour for remote work to cover associated expenses. This translates to an extra CZK 720 for a standard 160-hour work month, as stated by the Ministry of Labor and Social Affairs.

The suggested amount reflects the potential costs incurred by employees while working from home, encompassing electricity and gas consumption, water fees, heating, and waste disposal.

The calculation is based on the average hourly consumption of an adult in a typical household.

The proposal, currently undergoing review, is not anticipated to undergo significant changes as it aligns with legal stipulations. The Ministry is in the process of determining the allowance in accordance with revisions to the labor code, which outlines the definition of these compensations.

Importantly, these allowances are distinct from the salary and remain untaxed.

While the suggested compensation is not obligatory, employers have the flexibility to offer a higher sum or choose not to provide any compensation at all.

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The exact amount is subject to negotiation between the employer and the employee. The Ministry initially aimed to establish the allowance as a minimum, but faced opposition from various ministries and employer unions.

Critics of mandatory home office expense payments argue that it may disproportionately favor those working from home, creating an imbalance with those who commute to work.

Employers contend that remote workers already save money on transportation and meals, not to mention the time saved on daily commutes, which can amount to two hours for some workers.

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