Czech Republic: government approves a draft reform of the minimum wage

Featured image of the article Czech Republic: government approves a draft reform of the minimum wage
The Czech government has passed a draft amendment setting out new rules for calculating the minimum wage. From now on, the wage level will no longer be decided by the executive, but will be regularly revised on the basis of a calculation established by law. The aim of the reform is to bring Czech law into line with the provisions of the European directive on adequate minimum wages in the European Union. This change will have an impact on the guaranteed minimum wage, which will no longer apply in private companies.
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On 20 March, the Czech Republic’s conservative government approved a draft amendment to the labour code modifying the rules for setting the minimum wage, with a view to bringing domestic legislation into line with the requirements of the European directive on adequate minimum wages in the EU. This directive recommends a minimum wage equal to 60% of the median gross wage or 50% of the average gross wage. The Czech minimum wage was raised to 18,900 Koruna (approximately €773) in January,...

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