Remuneration of the Defence Sector Employees in the Context of Legislative Changes

Employee remuneration is based on a well-articulated philosophy—the system of beliefs and guiding principles that correspond to the organization values and help put them into practice. This philosophy recognizes that if the management of human resources is about investing in human capital, from which it demands an adequate, reasonable return, then it is okay to reward people differently according to their contribution and benefits. The remuneration strategies and processes that need to be implemented, must be based on a business strategy. Remuneration is implemented within the corporate wage policy. The salary and wage policy is based on the overall strategy of the company, its market position, development plans, economic situation of the company, organizational structure, technical parameters, production and on the result of an agreement with the social partners. In terms of outside influences, it must respect legal conditions, conjectural situation and the situation of the labour market.


Introduction
Employee remuneration is based on a well-articulated philosophy-the system of beliefs and guiding principles that correspond to the organization values and help put them into practice. This philosophy recognizes that if the management of human resources is about investing in human capital, from which it demands an adequate, reasonable return, then it is okay to reward people differently according to their contribution and benefits. The remuneration strategies and processes that need to be implemented, must be based on a business strategy. Remuneration is implemented within the corporate wage policy. The salary and wage policy is based on the overall strategy of the company, its market position, development plans, economic situation of the company, organizational structure, technical parameters, production and on the result of an agreement with the social partners. In terms of outside influences, it must respect legal conditions, conjectural situation and the situation of the labour market.

Remuneration in the Defence Sector
The remuneration of various professional soldiers of the armed forces is specific, it depends on the specific tasks and goals of these institutions and their organisational structure. The issue of remuneration of professional soldiers in the Army of the Czech Republic (ACR) has always been, and still is, a hot topic. The professional soldiers (hereinafter VZP) in the ACR are rewarded on the base of existence of a single salary system in the Czech Republic (CR) [1] as employees of the state, just like the soldiers in Germany or the UK, but unlike other professional armed forces, their remuneration has not been based on a link between the pay system and career structure. [ It regulated the provision of salaries of civil servants by determining the grade and so-called Salary scale, various bonuses and salary provision in other than the Czech currency. It included a catalogue of works and functions, according to which the private employees were classified in grades and steps. At that time there existed 12 grades, by educational attainment, which determined the catalogue of works for each function, and 12 steps according to the length of professional experience. The employee salary scale was then determined on the basis of qualifications and the number of years of professional (chargeable) practice. The salary scale was changed in the years 1999-2004 several times.
A specific example for better understanding: for the function-Chief of economic groups, including 10 grades, in 2000 the 6 th step salary scale was fixed at 9,750 CZK. Changed from 1 st January, 2001 namely by NV 496/2000 Coll., [3] it was modified to 10,340 CZK, from 1 st March, 2003 by NV 69/2002 Coll., [4] adjusted to 11,450 crowns and on the first of January 2004 by NV 584/2003 Coll., [5] adjusted to 11,990 CZK. The cited government regulation also considered the defining conditions for personal allowances, extra pay for leadership at all levels of management and command in the army, special bonuses, rewards and other pay.
On the basis of published standards in the Ministry of Defence there were also issued an internal standard order of the MoD 33/1994 Bulletin, Principles for Remuneration in the Ministry of Defence, which closely regulated the bonuses in the defence sector. On 1 st January, 2004, it came into effect NV 330/2003 Coll., On salaries of Employees in Public Services and Administration, as amended, which abolished the previous NV 79/1994 Coll. This normative dealt, like its predecessor, with the salary class, salary grade and pay fares, personal surcharge, additional fee for management, special bonuses, remuneration and other pay not only for VZP and civilian employees (hereinafter o. z.) of the MoD, but also for other employees in public services and administration. Part of this NV was not a catalogue of work since it also had come into effect on 1 st January, 2004, in NV 469/2002 Coll.
On a Catalogue of Jobs in Public Services and Administration, as amended (hereinafter NV 469/2002 Sb.), the salary scale underwent the most notable changes around the norm.
The number of grades increased from 12 to 16, and due to many changes in the conditions for determining the amount of the salary rate, there was set up a 5-pay scale instead of one scale that had previously been applicable to all employees listed in NV 79/1994 Coll  Surcharges for leadership in this NV were changed only in specific amounts, but also in the statement of management positions related to these charges. The forementioned NV first determined that the employee is entitled to only one of the special allowances, which did not involve premium for work in difficult and unhealthy working conditions and premium for work performed alternately in the morning, afternoon and night shifts. The amount of the special benefit of the employee is determined by the employer within the range which, under certain conditions, is the best for the employee. The amount of so-called "13 th salary" was the sum of the amounts of salary, rank bonus, extra pay for leadership, personal bonus and a special bonus, with the exception of the premium for employee exposure within the unit of multinational forces outside the country. It was provided only as a half of the amount to which the employee would otherwise be entitled.
Since 2004, there was provided an additional pay in full, which was noticeable for VZP of MoD compared to the half of the amount in previous years, however, providing an additional salary was fully abolished to 1 st July, 2005. Apart from these norms, the remuneration in the defence sector in this period was also concerned by NV 469/2002 Coll., On the Catalogue of Jobs in Public Services and Administration, as amended, which was, from 1 st October, 2010 replaced by NV 222/2010 Coll., On the Catalogue of Jobs in Public Services and Administration, as amended. Furthermore, from 1 st January, 2011 came into effect the NV 223/2010 Coll., On the Catalogue of Works of Professional Soldiers, as amended, which means that the VZP, as the only public service employees, have their own catalogue of works.
As a result of the entry into force of the Labour Code, there was a significant limitation of the scope of the Act 143/1992 Coll., which, since 2007, regulates the provision of salaries and remuneration for work readiness only for the VZP. The contents of this law remained almost the same throughout the defined period. The only major change was the change in rank premiums from 1 st January, 2011, which was a response to the amendment of the Act 221/1999 Coll., On Professional Soldiers, as amended, which was also due to a significant change in the rank designation for the VZP. For comparison, there are mentioned in Table 2 Table 3.  1,2,4,5,6,9,12,15,19,23,27,32  In the years 2007-2012 it was still in force, that to the VZP belongs only to one of the special allowances, and the highest, which can be claimed, in addition to the special premium for service performed alternately in the morning, afternoon and night shifts in the amount of 400 to 1,000 CZK. This newly did not apply for a special allowance in other than Czech M. DAVIDOVÁ, A. FLACHBART, L. JÍLEK: Remuneration of the Defence Sector Employees… currency in the amount of 700 to 4,000 per month, to which a VZP is entitled if included in the business unit of the multinational forces, or detached. The specific types and the amount of special allowances are given in Annex order of the MoD 44/2006.
The award, calculation of the individual components of salary, contributions to social and health insurance, including taxes on personal income, tax credits deductible, etc. were fundamentally the same for the VZP and even o. z. Another significant change in remuneration of VZP dates from 1 st July, 2015 when there came into force an amendment to Act 221/1999 Coll., On Professional Soldiers. This change is more closely described in another article.

Conclusion
The remuneration of employees is one of the tasks of human resources management in any organization. A properly set up system of evaluation and remuneration gives employees a healthy level of motivation. Remuneration is dependent on the economic aspects of the employer. Due to historical and social aspects, the salary policy is not left to market mechanisms. Through legislation, the state sets the minimum wage, salary conditions of employees of state and public administration.
Remuneration of employees of the defence sector is dependent on the specific tasks, objectives and organizational structure of the resort. For MoD, there were two pivotal periods: a) the period between 1999-2006, b) the period from 2007-30 June, 2015. For the first period, there was the basic Act 143/1992 Coll., on Salary and Remuneration for Work Readiness in Budgetary and Some Other Organizations and Bodies, as amended, for the second period-the amendment to Act 262/2006 Coll., Labour Code and related legislative changes to departmental regulations.