Government effects minimum wage hike
The Czech government has moved to increase the minimum wage in the country to 12,200 crowns per month effective as of next year. This will meet the government’s goal of raising the minimum wage to at least 40 percent of the average salary.
The goal of the present government was to reach a minimum wage of at least 40% of the average wage in the country. With the new raise, the minimum wage will be 40.5% of the average salary.
The hike will affect approximately 132,000 people who are currently working for a minimal wage. Most of them are employed in public services, security agencies and various sales outlets.
Not everyone is cheering the move. The opposition centre-right parties would have preferred for the government to lower taxes, while employers say the minimum wage hikes are unpredictable and clear rules for growth in this area would enable them to plan their expenditures better. They moreover argue that an 11 percent hike in the minimal wage does not correspond either to other wage hikes or the country’s economic growth. Whether some of them will lay off employees as a result of the move is as yet unclear.