Czech Labor Minister announces Government intention to raise the minimum wage
The Czech Government will likely raise the monthly minimum wage next year by CZK 1600 [EUR 65] to CZK 18,900 [EUR 775]. Czech Labor and Social Affairs Minister Marian Jurečka (Christian Democrats - KDU-ČSL) announced the plan on public broadcaster Czech Television's "Questions with Václav Moravec" program over the weekend.
Another option proposed by the Labor and Social Affairs Ministry would see a rise by CZK 2100 [EUR 85] to CZK 19,400 [EUR 800] monthly. The aim is to raise the minimum wage within five years to either 45 % or 50 % of the average wage.
Jurečka said he supports heading toward a minimum wage that will be 50 % of the average wage on the condition that guaranteed wages be abolished. During the commenting procedure on the bill, most of those commenting, according to him, were inclined to raise the minimum wage to 45 % of the average wage and to leave four categories of guaranteed wages in place, and most of the governing coalition shares that opinion.
The cabinet will discuss the matter in two weeks, according to the minister. “I dare say that unless some kind of miracle happens and employers tell us that they have reached a different agreement with the unions, the Government is 90 % likely to approve the 45 % option, CZK 1600, which is more than a 9 % increase to the minimum wage year-on-year over a value of 41.1 % of the average wage,” he said.
According to the vice-chair of the Czech-Moravian Confederation of Trade Unions, Vít Samek, the proposal continues the Czech Republic’s cheap labor policy. “There is nothing to prevent wages from growing faster,” he said.
During a debate on television, Czech MP Lucie Šafránková of the opposition “Freedom and Direct Democracy” (SPD) movement expressed her desire for the minimum wage to grow by CZK 2100. She believes an automatic valorization mechanism should be introduced for the minimum wage.
The minimum wage was increased in January 2023 by CZK 1100 [EUR 45] to CZK 17,300 [EUR 710] monthly. According to information from the Labor Ministry, about 118,000 people received the lowest wage for their work last year.
Unions are demanding a rise of CZK 2200 [EUR 90] for next year. Employers disagree with such a sharp increase to the minimum wage.
Employer groups point out that guaranteed wages also rise when the minimum wage does. The eight levels of guaranteed wages represent the baseline remuneration depending on the demands, expertise and responsibility entailed by a particular job.
Guaranteed wages range from the minimum wage to double the minimum wage. This year just the highest and lowest levels of the scale were adjusted upward.
