The minimum wage will increase to CZK 15,200 from 2021, and the guaranteed wage will also increase

–

How the minimum and guaranteed wages will increase

Today, the government agreed to increase the minimum wage from next year from the current CZK 14,600 to CZK 15,200. It will thus reach 42.4% of the average wage. An increase of 600 crowns is a compromise option. The unions demanded an increase of CZK 1,400, employers wanted to maintain the current level. The Ministry of Labor and Social Affairs (MLSA) submitted 4 growth proposals by CZK 400, CZK 900, CZK 1,400 and CZK 1,800. The coalition finally agreed on a compromise of CZK 600. I wanted the minimum wage to rise more, the YES movement was against it. Wage growth is crucial for the Czechia. Underestimating the price of labor weakens people’s ability to live at a decent level and leads to an increase in government spending on social benefits, commented the Minister of Labor and Social Affairs Jana Maláčová.

The level of the guaranteed wage will increase hand in hand with the growth of the minimum wage. The lowest levels of guaranteed wages apply to employees whose wages are not agreed in collective agreements and to employees in public services and administration and set the lowest price of labor in stages according to its complexity, responsibility and effort. For these purposes, the works are classified into 8 groups and for each of them the respective lowest level of the guaranteed wage in hourly and monthly terms is determined. The following amounts apply to a specified weekly working time of 40 hours.