Wage statement

What it means

A wage statement (mzdový výmer) is a written document in which the employer tells an employee the amount and make-up of their pay: basic pay, any supplements, performance pay, bonuses and the payday. It is used mainly when pay is not stated in the employment contract itself but the contract refers to the wage statement or an internal pay policy.

The Labour Code requires the employment contract to contain pay conditions unless they are agreed in a collective agreement. The employer can state them in the contract or in a separate document the contract refers to. A wage statement is such a document and becomes part of the employment relationship.

Its advantage is flexibility: when pay changes, the whole contract need not be amended; a new statement is enough. However, pay agreed in the contract cannot be reduced unilaterally by the employer; that requires the employee’s agreement.

How it works in practice

On hiring we prepare the wage statement together with the contract and check that pay is not below the minimum wage claim for the job’s level of difficulty. When pay changes, for example through indexation or promotion, we issue a new statement with an effective date and file the old one in the personnel file.

It is important to distinguish guaranteed and discretionary pay components. If the statement shows performance pay as a fixed amount without conditions, the employee is entitled to it and the employer cannot cut it without agreement. For a discretionary component, the statement should clearly describe what it depends on.

Under pay transparency rules the wage statement also becomes evidence: when comparing pay for equal work, it is examined who receives which components and why. A uniform structure of statements across the company helps with such comparisons and with justifying differences.

What to watch out for

The most common mistake is having no statement when pay changes, with a rise agreed orally and simply showing up in the payslip. In a dispute it is then hard to prove what was agreed, and if pay is later reduced the employee may argue the higher amount was guaranteed.

Watch out for cutting pay unilaterally with a new statement. If pay is part of an agreement, the employer cannot reduce it without the employee’s consent. A statement that tried to would be ineffective against the employee, and the difference would have to be paid with late payment interest.