Sunday, 20 April 2014

State spending on wages of bankrupt companies grows in 2012

ČTK |
13 February 2013

Prague, Feb 12 (CTK) - The Czech state spent Kc471.8m on wages for employees of bankrupt companies last year, compared with slightly over Kc389m used for the purspose in 2011, server Tyden.cz writes yesterday.

Labour offices paid the money to 7,694 employees of 770 bankrupt companies last year and to 8,253 employees of 762 companies in 2011.

Compared with 2011, state expenditures on wages for employees of bankrupt companies rose by over 21 percent. A record amount of Kc844m was paid in 2009.

The state has in the last time raised the success ratio of exacting the money for wages from the bankrupt companies. The ratio reached 29.3 percent last year, compared with 11.8 percent in 2010, the server says.

Compensations for unpaid wages can be demanded by employees of companies in insolvency that were not or are not paying wages. They can ask for the payment of wages for three calendar months at most.

Payments of compensations for unpaid wages:

Year Amount (Kc mil.) No. of applications
2005 147.5 5,957
2006 183.6 7,549
2007 196 6,888
2008 150.3 5,055
2009 844 19,451
2010 497.8 11,028
2011 389.1 8,253
2012 471.8 7,694

Source: Labour and Social Affairs Ministry

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