The minimum wage is likely to rise gradually to 47% of the average wage by 2029, per the government’s amendment to the Labour Code, which was approved by the Senate yesterday.
The minimum wage is currently fixed at 41.1% of the average wage, and has risen to CZK 18,900 as of January. Guaranteed wages based on expertise, responsibility and the difficulty of the work will be maintained only in the public sector from next year, and will be abolished in the private sector.
The legislation will now be submitted to President Petr Pavel for his signature.
The senators did not comply with the recommendation of the constitutional and legal committee that guaranteed wages should also be given to employees in companies for the sake of equality. This was demanded by trade unions, who say that omitting this requirement will lead to wage cuts and the expansion of the grey economy.
Minister of Labour and Social Affairs Marian Jurecka (KDU-CSL) argued that the minimum wage, according to the regular increase set by the amendment, will be higher than most levels of the guaranteed wage in five years.
The guaranteed wage represents the lowest earnings according to expertise, difficulty and responsibility of the work, and is paid in eight steps, from the minimum wage to twice the minimum wage. Under the amendment, it will be maintained in the public sector, but only in four steps, with the lowest equal to the minimum wage and the highest set at a multiple of 1.6.
The Senate approved the amendment with 52 votes from the 70 senators present, and it will take effect on 1 August if President Petr Pavel signs it within a week. In that case, the ministry could raise the minimum wage for next year to more than CZK 20,000, said Josef Klement, chairman of the KDU-CSL senators.
