The platform for a decent minimum wage in the Czech Republic has called for an increase in the minimum wage, citing that 63% of full-time jobs do not reach the minimum wage needed to cover basic needs, leisure, education, and savings. Last year, the minimum wage for full-time work was 40,912 crowns in the country and 42,776 crowns in Prague. However, the current minimum wage is only 17,300 crowns, 1,100 crowns lower than last year.

The platform’s experts use a different definition of the minimum wage, which considers not only basic needs but also expenses for other areas of life, including education and leisure. They suggest that the decent minimum wage in the regions should be 31,146 crowns and 36,717 crowns in Prague for 2021. However, more than 800,000 jobs did not reach the minimum decent wage level last year, as high inflation led to nominal wages growing more slowly than consumer prices.

Jan Bittner, an economist, noted that high inflation is concentrated in the area of basic needs, affecting low-income employees more. He warned that political pressure to prevent further wage increases could result in a wage-inflation spiral. Women are worse off than men, with 68% of women’s jobs and 53% of men’s jobs not reaching the minimum decent wage level. This is due to the wage gap between men and women, which is higher than the European average.

The platform’s experts believe that the weaker position of employees is one of the main reasons why wages in the Czech Republic are below the minimum decent wage level. The government has been urged to take action to improve the situation, including increasing the minimum wage to cover basic needs and other expenses.

In conclusion, the platform for a decent minimum wage has highlighted the need for an increase in the minimum wage in the Czech Republic. The current minimum wage does not cover basic needs, leisure, education, and savings. Women are disproportionately affected, with a higher percentage of women’s jobs not reaching the minimum decent wage level. High inflation is also a factor, leading to nominal wages growing more slowly than consumer prices. The government has been urged to take action to improve the situation and address the weaker position of employees in the country.

Article by Prague Forum