Czech minimum wage to increase

28 Nov 2019

The Czech Republic is set to increase its minimum wage in 2020, with the monthly minimum wage rising being of 1250 crowns. 

Representatives of the Czech government coalition parties have agreed for the monthly minimum wage to increase to 14,600 crowns from January onwards. This was confirmed by the public Czech Television (CT). 

Czech Prime Minister Andrej Babis, from the ANO party verified that the coalition had agreed to increase the minimum wage. He went on to describe it as a “good compromise.” 

Currently, the Czech minimum wage is CZK 13,350, last being increased at the start of the year. 

The rise should be of a higher value, according to the trade unions, but employers are on the other hand saying that adding it by 9% is a lot and may hurt companies. The trade unions expected the change in minimum wage to be closer to the 15,000 figure, whereas employers wanted the rise to be of 700 crowns.  

“Czechia cannot remain an island of cheap labour,” said Jan Hamacek, who is acting as the Deputy Prime Minister. 

Employers are concerned about the slowing economy, and the likelihood for the rise in minimum wage to affect smaller businesses. 

However, the Chamber of Commerce stated, “We won’t catch up with Western countries by a higher minimum wage but by a higher productivity.”