Employers against further rise of minimum wage


22.07.2014 16:44

Prague - Employers disagree with a further rise of the minimum wage by Kc700 to Kc9,200 as of next year, the Confederation of Industry told CTK today.


Peníze, bankovky, česká měna, koruna, úspory - ilustrační foto. ČTK Zavoral Libor

The proposal to raise the minimum wage has ensued from negotiations connected with the selection of a Czech candidate for the post of EU commissioner.

Ruling coalition parties nominated Local Development Minister Vera Jourova on Monday. The Social Democrats (CSSD) gave up the nomination of former finance minister Pavel Mertlik in exchange for an increase in social services' funding and a rise in the minimum wage by Kc700 instead of Kc500.

The proposal is yet to be discussed by the tripartite, a body consisting of representatives of the government, trade unions and employers.

"Businesses disagree with a further rise of the minimum wage in principle. At the tripartite meeting in June, where the rise of minimum wage for 2015 was approved, we said clearly that Kc9,000 is a threshold sum for us," Confederation of Industry president Jaroslav Hanak said.

"We understand that the minimum wage has not been changed for a number of years despite inflationary processes in the economy. On the other hand, we believe that raising the minimum wage harms the flexibility of the labour market," Economic Chamber president Vladimir Dlouhy said.

According to data from the Labour and Social Affairs Ministry, about 100,000 citizens receive minimum wage in the Czech Republic. In August last year, the minimum wage was raised by Kc500 to Kc8,500. Before that it was last time raised in 2007.

In their coalition agreement the ruling parties have pledged that the government will gradually increase the minimum wage so that it approaches 40 percent of the country´s average wage.

The average wage in the Czech Republic reached Kc25,128 last year.

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