Business & Economy Czech Republic News Politics & International

Czech Republic to increase minimum wage to €570 in 2020

Prague, Czech Republic – The Czech Republic should increase the minimum wage to 14,600 Kc (approximately €570) as of January 2020, the Czech News Agency reported on Wednesday.

According to reports, the leaders and representatives of the governing coalition have agreed to set the new minimum wage at 14,600 Kc starting in January, increasing it by 1,250 Kc compared to its current level. The deal still has to be officially approved by the government.

The Labour Ministry had originally prepared drafts for three potential hikes: 1,150 Kc, 1,350 Kc and 1,650 Kc. While Labour Minister Jana Maláčová (CSSD) was in favour of the middle scenario, Finance Minister Alena Schillerova (ANO), who warned that the minimum wage hike should stay in line with the average salary growth, supported the lowest one.

Last week, tripartite negotiations between Czech the government, trade unions and employers failed to reach an agreement on the amount of the minimum wage hike for 2020, leaving the final decision to the cabinet. Business unions had warned that they were only willing to agree to a maximum increase of 700 Kc, while trade unions were lobbying for a 1,600 Kc-hike.

Last year, the Czech Republic boosted the minimum wage by 1,150 Kc to bring it to its current level of 13,350 Kc (around €530).

The final decision should be made during the next cabinet meeting, on December 9. Labour Minister Jana Maláčová previously declared that she would like to amend the labour code to include a provision that would force the government to approve a minimum wage increase by the end of September at the latest.

Headed by Kafkadesk's chief-editor Jules Eisenchteter, our Prague office gathers over half a dozen reporters, editors and contributors, as well as our social media team. It covers everything Czech and Slovak-related, and oversees operations from our other Central European desks in Krakow and Budapest.