Raising the minimum wage does not occur automatically

After several months of negotiations, the representatives of the employers‘ associations have endorsed the 500 CZK minimum wage enhancement. From 1^st January 2015, the minimum wage in the Czech Republic will amount to 9000 CZK.

„We have agreed with the minimum wage increase for 2015,“ the Confederation of Industry President Jaroslav Hanák said after the tripartite meeting. „For us, it is a threshold sum.“

In a meeting with the representatives of the employers‘ associations, hold on Monday 2^nd June, the Prime Minister Bohuslav Sobotka, Minister of Finance Andrej Babiš and the new President of the Bohemian-Moravian Confederation of Trade Unions Josef Středula took part.

For the employers‘ associations, it was not easy to accept the enhancement of the minimum wage because it concerns some 100 000 people. The increase of the minimum wage will put pressure on the higher tariff groups. In certain industry branches, such as textile and construction industry, as well as in commerce and agriculture, the agreement could cause great problems.

The enhancement of the minimum wage will cost the employers some 190 million CZK on social insurance as well as 80 million CZK on health insurance payments.  

The employers and the Confederation of Industry consider these sums acceptable because of the expected growth of the GDP (2,5 percent this year).

„Next year, we will negotiate once more,“ Hanák said. „Raising the minimum wage does not occur automatically.“