The minimum wage must increase by 1,100 crowns per month from January. This was proposed by the Ministry of Labor and Social Affairs, which also expects the so-called guaranteed wage to remain virtually unchanged. It guarantees a minimum wage for each profession and has so far grown together with the minimum wage. This time, however, only the people in the worst positions and the best paid should accept the higher earnings. Aktuálně.cz summarizes what is involved.
Proportion of minimum wage to average | Photo: Ministry of Home Affairs and Communications
The increase in the minimum wage this time is different
- The minimum wage is the lowest permissible remuneration for working in classic mode 40 hours per week. The Ministry of Labor and Social Affairs (MPSV) wants to increase it from the current 16,200 crowns to 17,300 crowns from January. The base hourly rate will increase from 96.40 to 103.80 crowns.
Thus the minimum wage must reach more than 40 percent of the average wage. The European Parliament’s recommendation for Union states is that this share should be 50 per cent.
According to the proposals, the net minimum wage should reach 15,371 crowns next year. According to the ministry, it should motivate people more to work “on the job”, that is, to ensure at least the basic necessities of life without relying on social gains in material needs.
However, only about 130,000 employees in the Czech Republic receive the minimum wage. Thus, the so-called guaranteed salary, which is true for most Czechs, remains more attractive to Czechs.
- This guarantees the lowest possible income for individual professions. Until now, it has always grown in proportion to the minimum wage. It is divided into eight groups. While manual work falls into the first group, highly skilled positions fall into the eighth highest group. It now appears that most of the professions between this level will not enjoy the higher incomes of the New Year.
“With regard to the increase in the minimum wage, it is proposed to increase the level of guaranteed lowest wages for the 1st and 8th occupational groups. It is proposed to maintain the lowest level of guaranteed wages for groups 2 to 7 occupations at the current level for 2023,” the Ministry of Labor and Social Affairs acknowledged in its proposal.
For guaranteed wages, if wages do not reach the minimum level set, the employer is obliged to pay the difference to the worker. However, if the salary is not agreed in the collective agreement, different rules apply.
Employers have long criticized the guaranteed wage system, for example, according to the Chamber of Commerce, it is counterproductive and in many cases restrictive in the private sector.
- In the following overview, you will find out which workgroup you are joining and what is the minimum you should earn starting in January.
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