Raising the minimum wage tends to have a knock-on effect of higher unemployment. However, repeated increases in the minimum wage in the Czech Republic over the last few years have not that impact, suggests a new study published by the think tank IDEA, which is part of the economics institute CERGE-EI.
The parties of the ruling minority coalition, ANO and the Social Democrats,
on Monday agreed to raise old age pensions by 900 crowns a month as of
This is perceived as a victory of the Social Democrats who vehemently opposed the 750 crown hike proposed by Finance Minister Alena Schillerová from ANO. Nevertheless the finance minister has stressed that the extra money spent on pensions will have to be saved elsewhere.
The two parties also agreed to raise the children’s allowance from 220,000 to 300,000 crowns. Altogether the hikes should increase state expenditures by 11 billion crowns next year.
The government will increase the Czech minimum wage by CZK 1,150 to CZK
13,350 a month from January, the minister of social affairs, Jana
Maláčová, said. The Social Democrat minister said she would push to
ensure that figure is close to CZK 16,000 by 2021, when the government’s
The ANO minister of finance, Alena Schillerová, said she abstained from a vote held during Tuesday morning’s cabinet meeting. She argued that the change would increase companies’ costs.
The average monthly salary in the Czech Republic in the middle of this year was CZK 31,851. Some 4 percent of the country’s workforce is on the minimum wage.
Labour offices in the Czech Republic have provided immediate, extraordinary
assistance to around 1160 socially deprived tenants since 2016, according
to the annual report issued by the government Agency for Social Inclusion,
which is set to be debated by the government on Wednesday.
The immediate support is designated for tenants living in lodging houses to pay first and last month's rents in their new housing. Around 560 applications have been turned down by the labour offices.
The government Agency for Social Inclusion was established in 2008 to assist local authorities to resolve housing problems and creating a liaison between people living in social exclusion and labour offices, schools and the police and currently works in 60 municipalities with over 230 socially excluded localities.
The Social Democratic Party has said it would be willing to raise the
minimal wage by 1,200 crowns a month next year, instead of the 1,500 it had
been pushing for.
Labour and Social Affairs Minister Jana Maláčová said after Monday’s coalition talks she considered this a fair compromise and a realistic option.
Prime Minister Andrej Babiš is in favour of a 1,000 crown hike, on the grounds that the hike should not excessively burden small and medium-size employers.
The minimal wage is currently 12, 200 crowns a month.
The centrist Ano party and its junior coalition partner, the Social Democrats, have reached a framework agreement on increasing public sector salaries. While the specifics have not yet been made public, the coalition has agreed on a differentiated range of salary increases of about 8 per cent on average, with workers who now earn the least set to get the biggest raises.
The Ministry of Labour and Social Affairs has put forward a new decree that
would raise the minimum wage in the Czech Republic by over 12 percent. The
previously announced change would see the minimum wage climb by CZK 1,500
to CZK 13,700.
The amendment to the Labour Code, which has been posted on the Czech government website, also envisages tying growth of the minimum wage to average salary increases from the year 2020.
The Ministry of Labour and Social Affairs is headed by Jana Maláčová of the Social Democrats.
Prime Minister Andrej Babiš is in favour of raising the minimum wage by a
maximum of 1,000 crowns. Mr. Babiš made the statement on Tuesday after
meeting with the head of the country’s Confederation of Industry,
Representatives of Czech employers say they are willing to raise the
minimum wage by 800 crowns, but the Czech Republic’s trade unions are
seeking an increase of 1,500 crowns, or 12 percent.
As of this January, the minimum wage in the Czech Republic is 12,000 crowns (less than 500 euros).
Plans to cut housing benefits for the socially disadvantaged are in the spotlight ahead of a special debate scheduled for the lower house on Thursday. The ANO government say the move will curb landlords exploiting the poverty of others – but members of the opposition warn that it could undermine the lives of hundreds of thousands of people. I discussed the issue with Kumar Vishwanathan, a community worker in North Moravia.