Czech Minimum Wage to Increase by 1200 CZK Monthly

Following a compromise between Czech political parties ČSSD and ANO, minimum wage in the Czech Republic is expected to rise by 1200 CZK monthly from January 2019.

Minimum wage in the Czech Republic is currently 12,200 CZK per month. It was also increased by 1200 CZK at the beginning of 2018, following a 1100 CZK increase in 2017.

Minimum wage in the country has increased every year since remaining stagnant at 8,000 CZK from 2007-2013.

Following negotiations from Czech trade unions and employers, ČSSD originally pushed for an increase of 1500 CZK. ANO, backed by Czech Prime Minister Andrej Babiš, initially backed a rise in Czech minimum wage of 100 CZK.

Late last month, they settled on a compromise of 1200 CZK, which would bring the monthly minimum wage in the country up to 13,400 CZK.

“In my opinion, this is an acceptable compromise between the demands of trade unions and employers,” said Czech Labor Minister Jana Maláčová.

“I believe that this increase will be approved by the government.”

While the proposal has yet to be officially adopted, it’s expected to be a formality given the support of two of the Czech Republic’s largest political parties.

Last year, minimum wage was approximately 37.3% of the average salary in the Czech Republic. With the 1200 CZK increase, it will be about 38.3% of the average Czech salary.