27.05.2021 10:42
For the third time during its tenure, the present government is to increase the statutory minimum wage, this time by a record CZK 1100. The Government Decree dated October 5, 2016, issued under No. 336/2016 Coll., raises the minimum wage to CZK 11,000 with effect from 1-1-2017. In addition, this piece of legislation revokes the provisions of Section 4, which allow for paying less than minimum wage to employees who receive disability pension at the same time.
Over the past five years and following previous six years of stagnation, the statutory minimum wage increased by almost 40%. If the present trend continues, the minimum wage could reach CZK 15,000 in the years to come. A chart showing the development of minimum wage since the independence of the Czech Republic is attached.
The increase of minimum wage is accompanied by the increase of the so called guaranteed wage for individual professions and types of work. In the private sector, guaranteed wage is based on categories of jobs, in the public sector on wage grades. Consequently, guaranteed wage is higher than the minimum wage for most jobs, and may amount to CZK 22 000 (see table).