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

Kód výsledku v 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>

Výsledek na webu

<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

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Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

Druh

O - Ostatní výsledky

CEP obor

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OECD FORD obor

50206 - Finance

Projekt

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Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2024

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů