What does minimum wage mean?
The minimum wage is the lowest permissible amount of remuneration for work in an employment relationship. The minimum wage should protect employees from poverty and at the same time enable them to live at a level of modest material consumption and social contacts. Its basic legal regulation is determined by the Labor Code (Act No. 262/2006 Coll., as amended).
What is the minimum wage in 2023
From the beginning of 2023, the minimum wage has increased by 1,100 crowns to 17,300 crowns gross per month at a working time of 40 hours per week. This is an increase of 7.40 crowns per hour to 103.80 crowns. The government of the Czech Republic decided on this increase at its meeting on December 21, 2022. In 2022, it was 16,200 crowns per month, or 96.40 crowns per hour.
Hourly minimum wage
In 2023, the minimum hourly wage increases to 103.80 crowns. The minimum hourly wage refers to a set weekly working time of 40 hours. For other working hours (for example, for 37.5 hours for a three-shift work regime), the minimum hourly wage increases.
Minimum wage table
Compared to the minimum wage, most people have a so-called higher guaranteed minimum. This is often referred to as a guaranteed wage. This is also partially changed for 2023.
Minimum wage is sometimes confused with guaranteed wage, but they are not the same thing. While the minimum wage indicates the lowest possible remuneration for an employee, regardless of the type of work performed, guaranteed salary is determined on the basis of working groups. Work groups are divided according to the complexity, responsibility and effort of the work performed, and a different amount of guaranteed wages is set for these individual groups. In addition, the guaranteed wage can never be lower than the minimum wage.
How much is the guaranteed salary in 2023
The government decided in December 2022 that the guaranteed salary will increase from January 1, 2023 only for jobs that are classified in category 8 (the 8th group includes professions such as stockbroker or commercial and financial director). In this category, this year there is an increase to the amount of 34,600 crowns from the original 32,400 crowns. For other work groups, the amount of the guaranteed wage in 2023 will remain the same as in the previous year.
Minimum wage abroad
According to Pracomat.cz, the minimum wage in Britain is increased every year only in April. The current values therefore apply from 1/4/2022. For employees who are 25 years of age or older, the hourly minimum wage is 9.50 pounds, i.e. approximately 255 crowns. From 1 April 2023, the minimum wage for the same age category will be increased to 10.42 pounds per hour, i.e. approximately 280 crowns.
The minimum wage is a relative novelty in Germany. It was introduced under the government of Angela Merkel in 2015, and part of the law is its revision every two years. From October 1, 2022, the minimum wage in Germany was set at 12 euros per hour. In some fields, the minimum wage can be higher thanks to collective agreements, which are valid for example for construction, nursing, teaching staff, electricians or painters. This follows from the Czech server Pracomat.cz.
Austria is one of the countries in which there is no central minimum wage. However, in most industries there is a guaranteed minimum wage, which is determined by a collective agreement between unions and employers. All sectors have a fixed minimum wage of more than 1,500 euros per month.
In Slovakia, the minimum wage will increase by 8 percent in 2023. This follows from the website Finance.cz. In 2022, the Slovak minimum wage was 646 euros (roughly 15,350 crowns), from January 1, 2023, the Slovak minimum wage will be 700 euros (roughly 16,700 crowns).
From 1 January 2023, the minimum wage in Poland increased to 3,490 zlotys (roughly 17,500 crowns) and from 1 July 2023 to 3,600 zlotys (roughly 18,000 crowns). The website Finance.cz shows that in 2022 the minimum wage in Poland was 3,010 zlotys (i.e. 15,050 crowns). The minimum wage in Poland therefore increased by approximately 16 percent as of January 1, 2023, and will increase by another 4 percent on July 1, 2023.
In 23 US states, the hourly minimum wage increased this January. Her range is between $10.10 and $15 an hour. The increase affected about 8.4 million people. A news website reported about it CNN.