Employers in CR cut sharply all benefits in 2009 - survey

The share of staff who lost free drinks at the workplace and contribution to the private pension scheme during the year was similar. In contrast, benefits such as notebooks and cars for private use were cancelled the least often.

"Employers responded to the crisis by general reduction of non-financial benefits. In 2008, 39 percent of all employees had extra holidays, but the share dropped to almost one-quarter a year later," said Miroslav Dravecky from company Profesia which conducts the Merces.cz survey.

"There is no benefit in the Czech Republic that would be enjoyed by at least one-third of domestic employees, while in 2008 there were five such benefits," Dravecky said.

The development follows the trend that was already noticeable at around end-2008. At that time, the crisis, which started on the labour market in autumn that year, already began to reduce benefits.

"While the drop was relatively small at the turn of the years 2008 and 2009, cuts in benefits during 2009 became massive, affecting virtually everybody," Dravecky added.

The segments most affected by the reductions were the media, finances and postal services. The biggest cuts in benefits were made by domestic private companies, according to the survey.

The Merces survey monitored earnings and benefits of 250,000 employees who took part in it in 2008 and 2009. It is a project of Slovak company Profesia which is part of British firm Daily Mail and General Trust plc.

Comparison of all non-financial benefits in percent:

source: Merces.cz

Author: ČTK
www.ctk.cz