An independent platform MDW named the gross salary that can be considered minimum decent wage – in Prague, it was at the value of 37 987 CZK, in the rest of the Czech Republic – at 32, 438 CZK. Such results were obtained by the researchers for the year 2020 – since 2019, these values rose by 3,1%.
The minimum decent wage is defined by MDW as compensation for a standard 8-hour workday, which allows the employees to have basic yet decent finances for themselves and their household. With such a wage, people should expect to have enough money for food, transport, education, healthcare, clothes, leisure, and savings. Care for one dependent person (child/elderly/sick) was also included in the calculations.
During the research, twenty-two different experts were consulted, including specialists in areas of sociology, politology, economics, trade, and statistics.
The wage was broken down into eight categories:
- Purchasing decent quality food + lunch for employed adults per month – 5, 747 CZK
- Monthly rent of a moderate apartment + services – 8, 380 CZK in Czech cities / 12, 205 CZK in Prague
- Clothes – 1, 132 CZK per month
- Transport – 1, 680 CZK per month
- Telecommunications – 1, 353 CZK per month
- Health and Hygiene – 1, 028 CZK per month
- Leisure and Education – 2, 891 CZK per month
- Savings – 3, 290 CZK per month
According to the researchers, if the workers are not paid the minimum decent salary, they fall into the trap of debt, health problems, and limited opportunities for themselves and their children.
In 2020, the Czech minimum wage is at 14,600, which got raised by 1,250 from 2019. Despite the raise, according to MDW, Czech purchasing power remains at the bottom of the list among its European neighbors while economic uncertainty for half of the population is high.
Author: PRAGUE MONITOR EDITORS