Czechia to Raise Minimum Wage for Foreign Workers

Czechia to Raise Minimum Wage for Foreign Workers

Key Points

1. Czechia is set to raise the minimum wage for foreign workers.
2. The wage criteria under the Qualified Worker Program will be revised.
3. Companies will also be required to increase wages for Czech employees.

Starting in January 2025, the minimum wage for foreign workers in Czechia will rise by CZK 1,900 (€74.97).

The Qualified Worker Program will update its wage requirements, increasing the minimum wage from 1.2 times the guaranteed wage to 1.4 times the minimum wage.

This decision follows an agreement between the Ministry of Labor and Social Affairs, the Ministry of Foreign Affairs, the Ministry of Industry and Trade, and the Ministry of the Interior.

Wage Hikes for Czech Workers

To comply with the new program conditions, companies must offer foreign workers a gross wage starting at CZK 29,120 (€1,148.78), excluding bonuses, a significant increase from current wages.

This wage increase will also apply to Czech employees, which could financially strain businesses unprepared for these additional expenses.

Most manufacturing companies currently offer base wages between CZK 23,000 (€907.32) and CZK 26,000 (€1,025.64). A rise to CZK 29,120 (€1,148.80) could be overwhelming for companies that haven't accounted for this increase in their budgets.

For example, a company employing 1,500 workers, including 200 foreign workers, with a current base wage of CZK 24,500 (€966.57) would need to raise wages for all employees to CZK 29,120 (€1,148.92). This would increase total costs by CZK 6.93 million (€284,130), and including social security and health insurance contributions, annual wage expenses would soar by CZK 111.27 million (€4.56 million).

A drastic rise in wage criteria for foreign workers could jeopardize the continuation of the Qualified Worker Program, currently the only legal pathway for companies to employ a large number of foreign workers.

The ministries involved are set to continue discussions on this matter in the coming weeks.

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