Despite the persistently high inflation rate, state employees in the Czech Republic, except for teachers, will not witness any improvement in their wages next year. The government’s approved budget allocates two percent less, equivalent to 9.2 billion Czech koruna, for state employee salaries compared to the current year. The budget also anticipates a reduction of over 23,000 job positions in the state and public administration sector.

Finance Minister Zbyněk Stanjura clarified that this decision affects state employees broadly, not just bureaucrats. He pointed out that there aren’t as many state employees as some might assume, and each minister or office director has two options: either maintain the same positions with lower salaries or reduce the number of posts while offering higher wages to the remaining employees. Stanjura believes that having fewer positions with better compensation is the preferable approach and leaves the decision to individual ministers and directors.

Some ministers have already discussed the reduction of staff in their departments. For example, Vice Prime Minister and Minister of Labor and Social Affairs Marian Jurečka plans to decrease the number of employees in his department by ten percent over a year and a half. He aims to streamline internal processes to achieve a more efficient public administration structure.

In response to these plans, labor unions have expressed concerns and demands, including a meeting with Minister Jurečka to discuss his statements, which affect various aspects, including social services and employment offices. However, their meeting request was declined. The unions also disagree with the government’s intention to reduce wage funds by two percent and advocate for a ten percent increase in salary tariffs, considering the estimated inflation rate of five to six percent next year.

Jurečka has stated that the government does not plan a blanket increase in salaries and suggested that the unions negotiate with individual ministers for additional compensation. He did promise to arrange another meeting with the unions in October, and adjustments to the budget could potentially be made in the Chamber of Deputies.

The approved state budget for the next year, with a deficit of 252 billion Czech koruna, has been passed by the government during its session. The budget accounts for higher total revenues of 1.940 trillion koruna and higher expenses of 2.192 trillion koruna. The defense sector will see the most significant increase, with nearly 39.4 billion koruna more than the current year. On the other hand, some ministries, such as the Ministry for Regional Development and the Ministry of Transport, will face budget reductions.

Article by Prague Forum