How much does your employer have to pay you? If you work in the public sector or in a company with a collective agreement, the answer is clear: as much as the tariff wage. No guesswork, no “we’ll see”. In this article, you’ll find out what the tariff wage entails, who is entitled to it, how it is calculated and why it can be your best working ally.
A tariff wage is a specific amount of money that an employee receives for work done, according to rules set by the state, the employer or a collective agreement. You will most often see it in the public sector – in education, health care, firefighters or civil servants. But tariff pay can also occur in companies with unions and collective agreements.
How does it differ from a regular wage? Where wages are “negotiated” between the employee and the employer, the tariff wage is fixed according to so-called grades and steps. In other words, a tariff wage says that for work of a certain level of difficulty and experience, a person is entitled to a minimum salary of a certain amount – so there is no individual haggling.
From the employee’s point of view, the tariff wage is a kind of “wage ceiling and base” at the same time. The state thus ensures that people in similar positions are not significantly underpaid just because they work in a different region.
Get in touch with lawyers who understand the Labour Code and payroll. We’ll review your classification, uncover errors and help you recover fair compensation.
While a tariff wage is fixed by tables, a contractual wage is agreed between the employer and the employee – what you agree is what you get. In the public sector there is usually no room for a contract wage, but in the private sector it is common.
The tariff wage is calculated on the basis of two criteria: the grade (which corresponds to the difficulty and responsibility of the work performed) and the step (which is based on experience). In contrast, the contractual wage is often the result of bargaining power, the labour market or the specific situation of the company.
The advantage of a tariff wage is stability – the employee knows what to expect. The disadvantage is less room for financial motivation of individuals. Conversely, contract pay can be more flexible but also less fair, especially if the employee has a weaker bargaining position.
Whether you work to a tariff or a contract, the Labour Code guarantees that the wage cannot be less than the minimum or guaranteed wage, so the basic boundaries apply equally to everyone.
The tariff wage most often applies to employees of the state, municipalities, regions and public institutions such as schools, hospitals, cultural institutions or state offices. The law is clear: where the employer is a public institution, pay is set according to the salary scales, i.e. in the form of a tariff wage.
But you may also see a tariff wage in the private sector if the union and the employer agree on it in a collective agreement. This then applies to all employees in the company or industry.
If you are wondering whether you are entitled to a tariff wage, you can find the answer in your contract of employment, or in your employer’s internal regulations or collective agreement. And beware – the tariff wage can only be a basic wage. Above it, your employer can add various supplements and personal assessments if your work merits it.
Pay grades are the basis of the tariff system. They tell you how demanding, responsible and skilled the job is. The more demanding the job, the higher the grade and therefore the higher the tariff wage.
In the Czech Republic, there are 16 pay grades. For example, a cleaner falls into Grade 1, a tram driver into Grade 5 and a university professor into Grade 16. There are rules for determining the grade – it is based on the job catalogue and each job has its own description. The employer has to stick to this catalogue, so you can’t “downgrade” just to save money.
The complexity, responsibility and exertion of the work is assessed when grading. For example, whether the work requires high qualifications, whether it involves a risk to health or responsibility for property is taken into account.
While the grade for a tariff salary reflects the difficulty of the job, the salary step takes into account your experience. This makes for a fairer system – those who work longer logically have more experience and deserve a higher rate of pay. It is the combination of grade and step that determines the specific salary level.
In the public sector, there are usually 12 grades. Each step represents a certain number of years of service – the more the higher the step. For example, Grade 1 includes a newcomer, Grade 6 usually means ten years of experience, and Grade 12 is reached by those who have worked in the field for 32 years or more.
But it’s not just the experience with the current employer that counts. Working in a similar position elsewhere, running a business in the industry, or taking parental leave can also count towards the total experience, depending on what the employer recognises. The Labour Code requires the employer to justify and provide written evidence of the employee’s classification.
The tariff wage need not be the preserve of civil servants alone. It can also be used in the private sector if it is part of a collective agreement concluded between the employer and the trade union. In this case, the tariff wage is binding and applies to all employees covered by the agreement.
Collective agreements often regulate wage rates according to the industry, type of work and qualifications. This results in ‘sectoral tables’ which set minimum wages for, for example, chemical workers, construction workers or transport workers.
The employer cannot set the tariff wage himself according to his own mood, as the contract is established by agreement. Moreover, if there are several trade unions in a given enterprise, they must cooperate and negotiate together.
The great advantage of a tariff wage in collective agreements is transparency. The employee knows how much he or she will receive and cannot be disadvantaged for no reason. On the other hand, it can be more difficult for a company to reward outstanding performers flexibly.
The tariff wage is not fixed. It can change, but always according to predefined rules. In the public sphere, change is usually brought about by a new government decree that modifies the salary scales. In companies with collective agreements, tariffs change according to negotiations between the union and the employer.
Individual changes in tariff pay can also occur if an employee gains higher qualifications, is promoted to a more demanding position (grade change) or gains additional experience (promotion). The Labour Code requires the employer to take these changes into account, of course in a documented and objective manner.
The employee has the right to be informed of any pay change in a timely manner and in writing. If his/her rate of pay is reduced arbitrarily or in breach of the regulations, he/she can defend himself/herself – for example, by filing a complaint or a lawsuit.
Tariff pay is regulated by the Labour Code. According to it, the employee must be paid a wage, salary or remuneration for the work done. Tariff wages fall under wages or salary that are set by collective agreement, internal regulation or directly by law.
The Labour Code guarantees minimum standards: the wage must not be less than the minimum or guaranteed wage. If the wage is set at a tariff rate, it must not be lower than the tariff rate that corresponds to the work performed, its difficulty and the employee’s experience.
The employer is obliged to inform the employee of the method of remuneration and to provide him/her with regular payslips indicating the components of the wage. Any change shall be documented and the employee shall have the right to object to it.
The Labour Code also stipulates that wages must be paid on the statutory due date, usually monthly, and may not be reduced without lawful cause.
A tariff wage is a statutory form of remuneration that is based on the difficulty of the work (grade) and the experience gained (step). It is most commonly used in the public sector, but can also be negotiated in collective agreements in the private sector. It aims to provide fair and predictable remuneration for employees. The tariff wage forms the basic component of the salary, to which other supplements and bonuses are added. Any changes must be supported by a legal framework and properly documented. If you suspect a violation, you may have legal recourse.
A tariff wage is a fixed amount set by law or a collective agreement, whereas a contractual wage is the result of an agreement between the employer and the employee.
Public sector employees and employees of companies with collective bargaining agreements where tariff tables are negotiated.
It is determined by the complexity of the work and the number of years of creditable experience. The specific classification must be documented by the employer.
No. Increases are only due to changes in the law, collective bargaining agreements, or when you gain more experience or qualifications.
Not without a legal reason and a written amendment to the contract. An unjustified reduction is illegal.
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