A labour conference, attended by Czechia’s two largest unions and the Minister of Labour Jana Malacova (CSSD) came to an agreeable conclusion. Bohumir Dufek, the Head of the Association of Independent Unions stated that the minimum wage should be half of the average monthly wage. The statement was supported by Malacova.
Employers have long asked for a predictable formula for a transparent methodology for passing a minimum wage, but 50% of the average wage is high according to them. The group’s representative is offering a 700CZK raise for 2020’s minimum wage.
The department is preparing three options: 1150, 1350 or 1650CZK respectively. Dufek went on to say that with the strong pressure coming from the employer side, there is no way the unions can accept any version of a standard minimum wage model which is not 50% of the average wage.
Malacova justified the stance due to the state having to support low income workers through social programs. She also mentioned that countries like Poland and Slovakia are going to have minimum wages set at 15,000CZK next year even though their economies are smaller by GDP per person. The current minimum wage in Czechia is 13350CZK a month.