This would be the sixth minimum wage increase in as many years in the Czech Republic, if it is approved by the cabinet. The country boasts the lowest unemployment rate in the European Union, and such an increase is seen as a sign of its economic growth.
Government spokesman Martin Ayrer wrote on Twitter that the proposed wage increase would start in January 2018, and would come to about $509.48 (12,200 crowns) monthly before taxes, up from the the current 11,000 crowns.
The increase would help Sobotka’s administration achieve the long-term goal of making the minimum wage more than 40 percent of the Czech average, which was nearly 28,000 crowns last year.
About 3 percent of the Czech workforce, roughly 100,000 people, are paid the minimum wage. Sobotka predicted that by the middle of the year the raise would be approved.
Unemployment in the country dropped in the first quarter by 4.4 percent, while the gross domestic product rose 2.9 percent.
The country has about 327,199 unemployed people. In April, Czech companies reported 159,072 job vacancies.
