Government decides to increase minimum wage by 500 Czech crowns

During its session on Monday, the Czech government decided to raise the minimum monthly wage by 500 Czech crowns to 6,200 crowns as of January next year. The minimum wage was introduced in 1991 when it was set at 2,000 Czech crowns. In the Czech Republic it is less than 40 per cent of the average wage. Whilst some economists have warned that a higher minimum wage could lower labour productivity and increase unemployment, trade unions have welcomed the rise, arguing that it would force employers to utilise their workforce more efficiently.