Workplace Report (June 2019)

European news

Failure to agree on pay in Czech Republic


Unions, employers and the government in the Czech Republic have failed to reach agreement on a budget for 2020, with public sector pay rises a key point of contention. 


As part of an ongoing commitment to improve pay in education, the government had already agreed that teachers’ pay should increase by 10% in 2020 with a 7% increase for non-teaching staff. However, at a meeting in June, the unions again pressed their demand for a 15% increase for teachers, 10% for non-teaching educational staff, and 8% for other public sector employees, who have been offered 2% by the government. 


Inflation is currently rising by 2.5% (May), although the government expects it to fall to 1.6% in 2020. 


The employers are willing to accept higher pay for teachers, but want part of the increase to be performance-linked. All parties agreed to look at the issue again in September, when new economic forecasts will be available.



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