Experts have stated that the minimum gross monthly wage required for an adult in the Czech Republic to cover basic needs, including a child, free-time activities, and small savings, was CZK 40,912 in 2021. The amount was calculated by a committee that has urged the Czech government to set a minimum wage that would enable a decent standard of living.

During a press conference, experts noted that the minimum decent wage in Prague is CZK 42,776, which is higher than the national average due to higher housing costs in the capital city. Furthermore, the committee warned that 63% of jobs in the Czech Republic pay wages below the minimum decent wage.

In 2021, the minimum decent wage was CZK 31,146 in the regions and CZK 36,717 in Prague. However, due to high inflation, the minimum decent wage has increased by CZK 9,766 in 2022, reaching the national average wage of CZK 40,353.

While the law set the minimum wage at CZK 16,200 last year, it was raised to CZK 17,300 this year. Economist Jan Bittner explained that nominal wages are not keeping up with inflation. Bittner also pointed out that there is political pressure to prevent wages from increasing at a high rate, with the fear of triggering a wage-inflation spiral.

The debate surrounding minimum wages in the Czech Republic is not new. There have been several discussions about the need to increase the minimum wage to provide a decent standard of living for workers. The increase in the minimum wage this year is a step in the right direction. However, the fact that the minimum decent wage has increased by almost CZK 10,000 in a year highlights the urgency of the issue. The Czech government will need to address the matter and take measures to ensure that all workers can afford a decent standard of living.

Article by Prague Forum