In a move that promises to impact thousands of Czech workers, the government has approved a significant increase in the minimum wage for the coming year. The minimum monthly salary is set to rise by 1,900 crowns, jumping from 18,900 to 20,800 crowns.
This decision is part of a broader strategy to gradually increase the minimum wage relative to the average wage. The cabinet has established coefficients to raise the minimum wage from its current 41% of the average to 47% by 2029. The minimum wage is expected to reach 42.2% of the average for the upcoming year.
The change will take effect in January, providing a welcome boost to those on the lowest incomes. This increase could particularly benefit workers in sectors such as hospitality, where kitchen assistants are among those typically earning the minimum wage.
Minister of Labor and Social Affairs Marian Jurečka of the Christian Democratic Union (KDU-ČSL) emphasized the predictability this move brings to both employers and employees. “Based on this regulation, the relationship between the minimum and average wage will be automatically increased over the next two years. This makes the development of the minimum wage foreseeable for both employers and employees,” Jurečka stated.
As the Czech Republic continues to navigate economic challenges, this increase in the minimum wage represents a significant step towards improving living standards for the country’s lowest-paid workers. It remains to be seen how this change will impact businesses and the broader economy in the coming years.