The minimum wage will increase to CZK 15,200 next year. The proposal was approved by the Government of the Czech Republic last week. The minimum wage will increase by CZK 600. It will thus reach 42.4% of the average wage.
The minimum wage in the Czech Republic is currently CZK 14,600. The new amount is a result of a compromise option. The unions demanded an increase of CZK 1,400, while the employers wanted to maintain the current level. The Ministry of Labor and Social Affairs submitted 4 growth proposals by CZK 400, CZK 900, CZK 1,400 and CZK 1,800.
“I wanted the minimum wage to rise more. Wage growth is crucial for the Czech Republic. Underestimating the price of labour weakens people’s ability to live at a decent level and leads to an increase in state spending on social benefits,” adds the Minister of Labor and Social Affairs Jana Maláčová.
The minimum wage determines the growth of the lowest levels of the guaranteed wage. They determine the lowest price of labour in stages according to its complexity, responsibility and effort. This is a wage or salary to which the employee has a right under the Labor Code/contract/internal regulation/wage or salary assessment, for a specified weekly working time of 40 hours.
The lowest levels of guaranteed wages
The minimum wage determines the growth of the lowest levels of the guaranteed 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 labour 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 relevant lowest level of guaranteed wages in hourly and monthly terms is determined. The following amounts apply for a specified weekly working time of 40 hours.
|Group||Guaranteed hourly wage 2021||Guaranteed hourly wage 2020||Guarenteed monthly wage 2021||Guarenteed monthly wage 2020|
|1||CZK 90.50||CZK 87.30||CZK 15,200||CZK 14,600|
|2||CZK 99.90||CZK 96.30||CZK 16,800||CZK 16,100|
|3||CZK 110.30||CZK 106.40||CZK 18,500||CZK 17,800|
|4||CZK 121.80||CZK 117.40||CZK 20,500||CZK 19,600|
|5||CZK 134.40||CZK 129.70||CZK 22,600||CZK 21,700|
|6||CZK 148.40||CZK 143.20||CZK 24,900||CZK 24,000|
|7||CZK 163.90||CZK 158.10||CZK 27,500||CZK 26,500|
|8||CZK 181.00||CZK 174.60||CZK 30,400||CZK 29,200|
Group 1: professions such as a kitchen helper, a seamstress of minor adjustments, a cleaner, a courier, or a baggage carrier
Group 2: professions such as a digger, a scaffolder up to 10 m, a plumber, a maid, or a road paver
Group 3: professions such as a bricklayer, a plumber, a heating engineer, a waiter, a bartender, or a barber and a hairdresser
Group 4: professions such as a guide with interpreting, a specialist chef or a tailor in model and custom production
Group 5: professions such as a bus driver, a dispatcher, a paramedic, a general nurse, a midwife, a payroll accountant, a market researcher, or a kindergarten teacher
Group 6: professions such as a sales clerk, a special-school teacher, a network administrator, a creator of IT systems, or a planner of large and demanding constructions
Group 7: professions such as a financial expert, a doctor, a dentist, a pharmacist, a marketing expert, or a software developer
Group 8: professions such as experts in the financial and business strategy of organizations, brokers in the financial and capital markets and top scientists dealing in principle with new scientific research areas