Minimum Wage in the Czech Republic

The minimum wage and its determination is not an economic, but primarily a political category, strongly depending on the constitution of the Government and Parliament. The process of increasing the minimum wage does not correlate with economic growth. The paper deals with the development of the minimum wage and the guaranteed wage deriving therefrom. The authors suggest a new approach to the determination of the minimum wage, which is not dependent on political decisions, which would be enacted by law according to particular known criteria, depending on objective economic data. Also, they recommend that the so-called guaranteed wage should be cancelled.