Czech Government Proposes Compensation Scheme for Home Office Workers to Offset Expenses

In a move reflecting the evolving landscape of work, the Czech government has put forth a new proposal for a compensation scheme designed to support home office workers. Set to come into effect from January next year, the proposal recommends that employers pay an additional 4.50 korunas per hour worked from home, aiming to alleviate the expenses incurred by remote work. For a standard 160-hour work month, this translates to an extra 720 korunas.

The suggested compensation amount is calculated to cover various costs associated with working from home, including 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.

Currently under review, the proposal is expected to undergo minimal changes as the stipulated conditions align with existing labor laws. The Ministry of Labor and Social Affairs needs to finalize the allowance calculations by revising the labor code, which introduced the definition of such compensations. Importantly, these allowances are not considered part of an employee’s salary and are not subject to taxation.

While the proposed compensation is not mandatory, allowing employers flexibility, critics argue that it may create an imbalance between home office workers and those commuting to workplaces. Opponents contend that remote workers already enjoy savings by avoiding transportation costs and restaurant lunches. Additionally, the time saved on commuting, which can be significant for some workers, is considered a non-monetary benefit of working from home. The agreement on the specific compensation amount remains subject to negotiation between employers and employees, emphasizing the need for flexibility in addressing the diverse circumstances of the workforce.

Article by Prague Forum

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