The Czech government coalition today agreed to raise all monthly base pays in the public sector by 1500 crowns next year and to cancel the lowest base pay level concerning the least paid professions such as cooks.
The pay decision, which covers about 290,000 state employees, will allow the government to complete its draft budget for next year.
“The last question of the 2020 budget is solved,” said Finance Minister Alena Schillerova on Twitter.
Prime Minister Andrej Babis (ANO) told journalists that teachers will be the only group with a percentage increase, while all the others will get a fixed sum.
The non-teaching staff of schools will have their salaries raised by more than 7 percent since the lowest base level will be cancelled, Babis said.
The government planned a pay rise of 10 percent for teachers and 7 percent for the non-teaching professions.
The Finance Ministry expects economic growth to slow to 2.2% in 2020 from 2.4% this year and it sees downside risks to the outlook.
The Czech economy, like others in central Europe, has held up amid a global slowdown thanks to strong domestic demand fuelled by low unemployment and rising wages.