scholarly journals The Effects of Minimum Wage Increases in the Czech Republic

2021 ◽  
Author(s):  
Jakub Grossmann
Keyword(s):  
Czech Republic ◽  
Minimum Wage ◽  
The Czech Republic ◽  
Wage Increases

scholarly journals Evaluation of the adequacy of government minimum wage valorization policy in the Czech Republic in 2017 in the European context

2017 ◽  
Vol 8 (1) ◽  
pp. 21 ◽  
Author(s):  
Martin Pernica
Keyword(s):  
Czech Republic ◽  
Minimum Wage ◽  
Minimum Wages ◽  
Income Poverty ◽  
The Czech Republic ◽  
Eu Countries ◽  
Macroeconomic Indicators ◽  
Per Capita ◽  
The Government ◽  
Workforce Productivity

Research background: The government of the Czech Republic has agreed to an increase in the minimum monthly wage as of the beginning of 2017 to 11,000 CZK, which represents a year-over-year increase of over 11 %. The government is thus fulfilling its objective set out in February 2014 and stipulated in the Government Statement of Purpose, i.e. to approximate the minimum wage to 40 % of average wages. Purpose of the article: The purpose of the article is to assess the adequacy of the Government Minimum Wage Valorization Policy, in particular from two points of view. Firstly, in view of selected macroeconomic indicators in the Czech Republic — the development of consumer prices, average gross wages, economic growth and workforce productivity. Secondly, in comparison with other EU member states which have introduced the institution of a minimum wage. Methods: In order to assess the adequacy of government policy to improve the social protection of the rights of the working population, a background research was conducted into the literature of important studies on the effects of minimum wages on unemployment, while the development of average gross wages in the CR, the minimum monthly wages in the CR and the Kaitz index were also analyzed. Furthermore, an evaluation of selected macroeconomic indicators in the Czech Republic was performed by means of time lines and the percentage representation of employees in the individual gross wage bands according to sex and type of economic activity. Last, but not least, a comparison was made of minimum wages, real gross domestic product per capita and workforce productivity in Euros and in purchasing power standards between the Czech Republic and countries which have enacted the institution of minimum wages. Findings and Value added: The minimum wage in the Czech Republic is the fifth lowest in the EU. In the long term, it is earned by approximately 3% of employees, which is less than the rate common in other EU countries. Currently, the amount of the minimum wage is below the threshold of income poverty. In comparison with the GDP per capita in PPS and real labour productivity per person employed in other EU countries, the position of the Czech Republic is significantly better, although other EU countries offer higher minimum wages. The decision of the current government to significantly increase the minimum wage as of 2017 is correct.

scholarly journals Conditions of Minimum Wage Indexation in Czech and Slovak Legislation in the Context of Business Economics

2016 ◽  
Vol 7 (4) ◽  
pp. 243-258 ◽  
Author(s):  
Martin Pernica
Keyword(s):  
Czech Republic ◽  
Minimum Wage ◽  
Average Wage ◽  
Wage Level ◽  
The South ◽  
Chi Square ◽  
Business Economics ◽  
The Czech Republic ◽  
Chi Square Test ◽  
Wage Indexation

Abstract The aim of the article is to assess – on the basis of a comparison of Czech and Slovak legislation relating to the conditions of the minimum wage indexation – whether it would be appropriate to use certain aspects of Slovak legislation in the Czech legislation and vice versa. When elaborating the article, some logical methods were used. In order to collect data, important employers were addressed in the South-Moravian Region. A carrying method used during the work was a comparison. Analyses were processed using the data of the Czech Statistical Office, the European Statistical Office and the Ministry of Labour and Social Affairs of the Czech Republic. To evaluate the research, the percentage representation of positive and negative responses and Pearson’s Chi-square test were used. The paper presents the results of research whose aim was to get the views of entrepreneurs regarding the minimum wage level and conditions of its indexation. Employers supported the idea of maintaining the institution of the minimum wage. A predominant portion of companies would welcome it if the minimum wage were derived on the basis of an average wage, and the vast majority of companies would welcome the annual indexation of the minimum wage by inflation.

scholarly journals Selected issues of the minimum wage in the Czech Republic

2014 ◽  
Vol 17 (4) ◽  
pp. 30-45 ◽  
Author(s):  
Tomáš Pavelka ◽  
Marek Skála ◽  
Jan Čadil
Keyword(s):  
Czech Republic ◽  
Minimum Wage ◽  
The Czech Republic

scholarly journals The Impact of Minimum Wage Changes on Management in the Czech Republic

2016 ◽  
Vol 7 (3) ◽  
pp. 183-189 ◽  
Author(s):  
Natalie Uhrová ◽  
Petr Skalka
Keyword(s):  
Czech Republic ◽  
Social Security ◽  
Minimum Wage ◽  
Employment Contracts ◽  
The Czech Republic ◽  
Social Security Contributions ◽  
Managerial Decisions ◽  
The Impact

Abstract The extent of social security contributions paid by both employers and employees in the Czech Republic is considered one of the biggest problems of the Czech economy. At the same time, the minimum wage in the Czech Republic has been repeatedly changed in recent years and even months, and thus the aim of this paper is to identify and discuss possible consequent changes in managerial decisions in Czech firms that could be examined in further analyses. We suggest the hypothesis that Czech firms are lowering their costs via the substitution of employment agreements for employment contracts in order to avoid social security contributions paid by the employer.

scholarly journals Concept of Minimum Wage Controversy: The Case of the Czech Republic

2020 ◽  
Vol 68 (4) ◽  
pp. 423-442
Author(s):  
Helena Chytilová ◽  
Petr Frejlich
Keyword(s):  
Czech Republic ◽  
Minimum Wage ◽  
The Czech Republic

scholarly journals The Minimum Wage and Its Impact on Unemployment in the Czech Republic

2014 ◽  
Vol 22 (6) ◽  
pp. 51-65 ◽  
Author(s):  
Michal Pícl ◽  
Petr Richter
Keyword(s):  
Czech Republic ◽  
Minimum Wage ◽  
The Czech Republic

scholarly journals The minimum wage in the Czech enterprises

2010 ◽  
Vol 58 (6) ◽  
pp. 253-258
Author(s):  
Eva Lajtkepová
Keyword(s):  
Czech Republic ◽  
Minimum Wage ◽  
Government Regulation ◽  
Spearman Correlation ◽  
Independence Test ◽  
The Czech Republic ◽  
Questionnaire Research ◽  
South Moravia ◽  
First Time ◽  
Specific Amount

Although the statutory minimum wage is not a new category, in the Czech Republic we encounter the definition and regulation of a minimum wage for the first time in the 1990 amendment to Act No. 65/1965 Coll., the Labour Code. The specific amount of the minimum wage and the conditions of its operation were then subsequently determined by government regulation in February 1991. Since that time, the value of minimum wage has been adjusted fifteenth times (the last increase was in January 2007). The aim of this article is to present selected results of two researches of acceptance of the statutory minimum wage by Czech enterprises. The first research makes use of the data collected by questionnaire research in 83 small and medium-sized enterprises in the South Moravia Region in 2005, the second one the data of 116 enterprises in the entire Czech Republic (in 2007). The data have been processed by means of the standard methods of descriptive statistics and of the appropriate methods of the statistical analyses (Spearman correlation coefficient of sequential correlation, Kendall coefficient, χ2 - independence test, Kruskal-Wallis test, and others).

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