Executive Summary: Analysis of the adequacy of the minimum wage in the Czech Republic

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00025950%3A_____%2F24%3AN0000025" target="_blank" >RIV/00025950:_____/24:N0000025 - isvavai.cz</a>
Result on the web
<a href="https://katalog.vupsv.cz/fulltext/vz_570.pdf" target="_blank" >https://katalog.vupsv.cz/fulltext/vz_570.pdf</a>
DOI - Digital Object Identifier
—

Result language
angličtina
Original language name
Executive Summary: Analysis of the adequacy of the minimum wage in the Czech Republic
Original language description
This executive summary presents key findings from a detailed analysis conducted in Czech on the adequacy of the statutory minimum wage in the Czech Republic for 2023. The analysis was prompted by the adoption of the European Directive on Adequate Minimum Wages in the EU (Directive (EU) 2022/2041), which requires member states to regularly assess minimum wages based on factors such as purchasing power, wage distribution, productivity trends, and overall wage growth. Despite recent increases, the Czech minimum wage remains insufficient to cover basic living costs for single-person households, particularly in urban areas with higher expenses. Indicators like the Kaitz index and tax wedge analysis reveal structural shortcomings, including the minimum wage's limited ability to address income inequality or meet international adequacy benchmarks. The study highlights how inflation, productivity trends, and systemic inequities further undermine the effectiveness of the minimum wage. Recommendations include gradual increases in the minimum wage, stronger collective bargaining, and reduced tax burdens for low-wage earners to align with European standards, reduce in-work poverty, and enhance financial stability.
Czech name
—
Czech description
—

Project
—
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2024
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Similar results(10)