<abstract xmlns="http://www.w3.org/1999/xhtml"><p> The extent of social security contributions paid by both employers and employees in the Czech Republic is considered one of the biggest problems of the Czech economy. At the same time, the minimum wage in the Czech Republic has been repeatedly changed in recent years and even months, and thus the aim of this paper is to identify and discuss possible consequent changes in managerial decisions in Czech firms that could be examined in further analyses. We suggest the hypothesis that Czech firms are lowering their costs via the substitution of employment agreements for employment contracts in order to avoid social security contributions paid by the employer.</p></abstract>

The extent of social security contributions paid by both employers and employees in the Czech Republic is considered one of the biggest problems of the Czech economy. At the same time, the minimum wage in the Czech Republic has been repeatedly changed in recent years and even months, and thus the aim of this paper is to identify and discuss possible consequent changes in managerial decisions in Czech firms that could be examined in further analyses. We suggest the hypothesis that Czech firms are lowering their costs via the substitution of employment agreements for employment contracts in order to avoid social security contributions paid by the employer.

The Impact of Minimum Wage Changes on Management in the Czech Republic

University of Economics in Ostrava, Mojmírovcu 42, 70900 Ostrava, Czech Republic

DANUBE

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"The Impact of Minimum Wage Changes on Management in the Czech Republic"}

The extent of social security contributions paid by both employers and employees in the Czech Republic is considered one of the biggest problems of the Czech...

The Impact of Minimum Wage Changes on Management in the Czech Republic

Published Online: Oct 19, 2016

Page range: 183 - 189

DOI: https://doi.org/10.1515/danb-2016-0012

Keywords
Social Security Contribution, Minimum Wage, Employment Agreement

© by Natalie Uhrová

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

The Impact of Minimum Wage Changes on Management in the Czech Republic

Published Online: Oct 19, 2016

Page range: 183 - 189

DOI: https://doi.org/10.1515/danb-2016-0012

KeywordsSocial Security Contribution, Minimum Wage, Employment Agreement

© by Natalie Uhrová

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
Social Security Contribution, Minimum Wage, Employment Agreement