Podcast
Questions and Answers
What type of wage component is a reward for the amount of work done?
What type of wage component is a reward for the amount of work done?
- Intangible rewards
- Variable wage (correct)
- Basic wage
- Employee benefits
The minimum wage is determined by individual companies based on their financial capability.
The minimum wage is determined by individual companies based on their financial capability.
False (B)
What forms of supplementary wages can be provided for extraordinary performance?
What forms of supplementary wages can be provided for extraordinary performance?
Rewards or bonuses
Compulsory additional payments for overtime work must be at least ______ of average earnings.
Compulsory additional payments for overtime work must be at least ______ of average earnings.
Match the following forms of employee benefits with their descriptions:
Match the following forms of employee benefits with their descriptions:
Which of the following is NOT considered a basic wage form?
Which of the following is NOT considered a basic wage form?
Intangible rewards are primarily focused on monetary compensation.
Intangible rewards are primarily focused on monetary compensation.
What is a Cafeteria system in employee benefits?
What is a Cafeteria system in employee benefits?
Flashcards
Basic Wage Component
Basic Wage Component
Base pay, usually determined by factors like job role, experience, and performance.
Variable Wage Component
Variable Wage Component
Pay that is determined by factors other than fixed time worked, like performance, sales, or output.
Employee Benefits
Employee Benefits
Non-monetary benefits provided by the company to employees, such as health insurance, retirement plans, or paid time off.
Intangible Rewards
Intangible Rewards
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Standard Period Plan
Standard Period Plan
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Piecework Rate
Piecework Rate
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Profit Share
Profit Share
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Minimum Wage
Minimum Wage
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Study Notes
Employee Compensation Elements
- Basic wage components include a variable wage component, employee benefits, and intangible rewards.
- Basic wage forms include standard period plans (remuneration for time), piecework rates (reward per work amount), share-based/commission-based wages (based on quantity/services), and wages for expected work results.
- Supplementary wage forms include premiums (communicated to motivate performance), bonuses/rewards (for extraordinary performance/loyalty), merit pay (based on performance evaluation), shares in company results (profit sharing), and employee stock ownership plans.
- Additional payments include other payments.
Compulsory Compensation
- Overtime work compensation must be at least 25% of average earnings (unless covered by salary or compensatory time off).
- Public holiday work compensation must be at least average earnings or compensatory time off.
- Saturday and Sunday work compensation must be at least 10% of average earnings (unless otherwise agreed).
- Difficult work environment compensation requirements are governed by regulation; at least 10% of average earnings
- Night work (22:00 to 06:00) compensation is at least 10% average earnings (unless otherwise agreed).
- Optional benefits could include transport, clothing or accommodation .
Other Compensation Payments
- Thirteenth salary
- Holiday allowance
- Anniversary allowance (life, work)
- Recruitment allowance
- Severance pay
Employee Benefit Systems
- Benefit systems are often not performance-based but for loyalty and satisfaction.
- Benefit systems are often identical for all staff.
Minimum Wage
- The minimum wage is the lowest allowable compensation for work.
- Minimum wage is legally regulated and cannot be less than the minimum.
- This includes the minimum legal pay, excluding overtime, holidays, night work, work in difficult conditions, or work on Sundays, Saturdays, etc.
- The 2025 minimum wage is CZK 20,800 per month / CZK 124.40 per hour.
Guaranteed Wage
- Guaranteed wage includes compensation earned through work performance
- It cannot dip below legal minimums specified by regulation.
- Based on complexity, responsibility, and effort required for the work performed, wages are graded into eight groups in the government decree.
Average Wage (Czech Republic)
- In the 2nd quarter of 2024 Czech Republic average gross monthly wage was CZK 45,854.
- Median wage in the Czech Republic was CZK 38,529.
- Average wage varies based on demographics (e.g., men vs. women).
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