Minimum wage to increase
The rate still has a way to go to reach the announced goal
The minimum wage in the CzechRepublic in January 2016 will increase by Kč 700 to Kč 9,900, an increase of 7.6 percent. The minimum wage for those with disabilities also increased by Kč 1,300 to Kč 9,300.
The Ministry of Labor and Social Affairs says some 2.3 percent of employees in the Czech Republic earn the minimum wage.
The government in its coalition agreement pledged that the minimum wage would gradually approach two-fifths of the average wage, which is currently at Kč 26,072. Two-fifths would equal Kč 10,429.
Sobotka recently said that from January 2017 the minimum wage should amount to Kč 11,000. The Confederation of Industry (SP ČR) called the increase a populist step before the parliamentary elections scheduled for that year. Business also criticiyed the current increase as a threat to the economic recovery.
The increase in the minimum wage should cost firms Kč 1.6 billion and cost the public sector Kč 439 million.
The higher minimum wage will also mean an additional Kč 470 million and for health coverage about Kč 200 million.
The government's plan to promote equal opportunities for people with disabilities counts on making the standard minimum wage and the wage for the disabled the same. This was supposed to start in 2016 but the government postponed it by one year.
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