Czech Government Approves Increase in Minimum Wage Starting January

The Czech government, under the leadership of Prime Minister Petr Fiala, has decided to increase both the minimum and guaranteed wages for the coming year. As of January, the lowest income will rise by 1,600 korunas, setting the minimum salary at 18,900 korunas.

This increase in the minimum wage to 18,900 korunas signifies a growth of 9.2 percent. “The rise in the minimum wage will be the highest in history,” emphasized Marian Jurečka, Minister of Labor and Social Affairs, during a government press conference.

In addition, the ministry aims to gradually implement a plan where the minimum wage, over five years, will transparently increase. The ultimate goal is for it to subsequently be 45 percent of the average salary, following the regulations of the European Union.

The Ministry of Labor and Social Affairs initially proposed two options for increases starting January – 2,100 korunas or 1,600 korunas. While unions advocated for a more significant increase, employers argued that the minimum wage should rise more slowly.

After disagreements at the tripartite level, Jurečka stated that he would submit a proposal at the cabinet meeting with the lower amount.

Four out of the eight guaranteed wage levels, which are paid according to the demands, responsibilities, and expertise of the job, will also rise. By next year, entrepreneurs are expected to see an increase in wage costs by 5.21 billion korunas due to the mandated increase, according to estimates by the Ministry of Labor.