Czechia's reimbursement plan for remote workers could take effect next month

Home office has remained a popular option for many in the Czech Republic since the pandemic, but employees who work from home may find themselves incurring higher costs than if they worked from the office. A new proposal from the Ministry of Labor, which could take effect as soon as next month, aims to change that.

Starting in October, employees who work from home in the Czech Republic could be eligible for expense reimbursements from their employers. The Ministry of Labor recently published a decree outlining this initiative, which could see remote workers receiving a flat reimbursement rate of CZK 4.60 for every hour worked from home.

This decree is part of an amendment to the Czech Republic's Labor Code, currently awaiting the President's signature, which lays out the regulations for providing flat-rate compensation to employees working remotely. The Ministry of Labor anticipates that the modified code will come into effect from October.

This reimbursement includes rates for demonstrable utility expenses like electricity, heat, or water for every hour worked. Contract workers can also be eligible for this flat-rate reimbursement if they agree to it. However, both the employer and employee can mutually decide, in advance and in writing, to waive the reimbursement for remote work-related expenses.

The specific flat rate, set by the Ministry of Labor, is determined based on data from the Czech Statistical Office regarding household consumption and living costs. It takes into account the consumption of water, electricity, gas and other fuels, as well as waste removal and sewage.

The flat rate is valid for the entire calendar year, but can be adjusted if the default values for these expenses rise or fall by at least 20 percent. As of now, the calculated flat rate includes set per-hour costs for each of these expenses that add up to CZK 4.60 per hour.

For instance, if an employee worked remotely for five days a month, with eight hours each day, they would receive an additional CZK 184 in reimbursements. For ten days of remote work, this would increase to CZK 368. Employers also have the option to offer higher compensation.

Employees can expect to receive the flat-rate reimbursement for a given month in the following month at the latest. It's important to note that public organizations, authorities, municipalities, and other institutions are required to cover these expenses from their allocated budgets and will not receive additional funding.

According to the Department of Labor, the flat rates are not expected to have a negative impact on entrepreneurs. However, the exact financial implications for companies has not been calculated in advance documents.

The amendment, which was approved by the Czech Chamber of Deputies, was sent to the President for signature on September 13 and it is expected to be implemented from October. Interested parties, including trade unions and employers, have until September 20 to submit their comments on the proposed reimbursement rates.