Jana Maláová (SSD), the Minister of Labor, will propose raising the minimum salary from 15,200 crowns to 18,000 crowns starting in January. Jan Hamáek, the party’s leader and Deputy Prime Minister, revealed this in a press conference for the Social Democrats. With low unemployment, Maláová believes it is now time to put pressure on employers to increase pay.
The minimum wage should be increased significantly, according to trade unions. Employers, on the other hand, prefer a smaller increase, perhaps a few hundred crowns. They point to the economic consequences of the coronavirus outbreak. Entrepreneurs believe that the lowest salaries should rise as other incomes and the state of the economy are considered. The minimum wage would grow by nearly 18 percent if it were raised by 2,800 crowns, as Maláová proposes.
The Social Democrats argue that in Slovakia and Poland the amount is growing more and is higher than in the Czech Republic. “If countries like Slovakia and Poland run away from us, then the Czech Republic will be the only country where assembly plants remain. And we can say goodbye to catching up with the West,” Hamáček said.
Maláová believes that low unemployment is an opportunity to put pressure on wage growth. In May, unemployment fell from 4.1 percent in April to 3.9 percent.