Living Wage Series - Czech Republic - December 2018 - In Czech Koruna, per Month

The Living Wage is based on the concept that work should provide an adequate income to cover the necessary living costs of a family. WageIndicator uses prices from the Cost of Living Survey to calculate Living Wage in more than 60 countries. The Living Wage is an approximate income needed to meet a family’s basic needs including food, housing, transport, health, education, tax deductions and other necessities.

The following table summarises the varying expenditure and income needs for the three commonly occurring family household compositions.

Expenditure and Living Wage calculation (monthly rates in Czech Koruna)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food 5210-6940 5950-7930 1490-1990
Housing 10400-14000 10400-14000 6630-8910
Transport 610-1100 610-1100 305-550
Health 1000-1500 1000-1500 250-375
Education 1000-1500 1000-1500 0
Other costs 910-1250 950-1300 435-590
Total Expenditure 19130-26290 19910-27330 9110-12415
Net Living Wage 11956-16431 11061-15183 9110-12415
Gross Living Wage 15000-20500 13800-19000 11400-15500

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in Czech Koruna)

There is not a single answer to what is the adequate cost of living. The result is complex, as the cost of living varies by household composition, location, and employment pattern. The following table presents the Living Wage estimates for a set of most common family household compositions and under different assumptions about working hours.

  from-to
Typical family (two parents + 1.5 children, 1.6 working) 15000-20500
Standard family (two parents + 2 children, 1.8 working) 13800-19000
Two parents and two children, 2 working 12500-17100
Two parents and two children, 1.5 working 16600-22800
Two parents and two children, 1 working 24900-34200
Two parents and three children, 1.6 working 16800-23000
Two parents and four children, 1.6 working 18000-24600
Single-adult without children, 1 working 11400-15500

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in Czech Koruna)

The Minimum Wage is a national legally binding obligation on employers which often make no reference to a living standard. Living Wage describes the adequate living standard. The common goal of the many living wage campaigns currently taking place all over the world is to lift Minimum Wages levels to those of the Living Wages. WageIndicator presents Living Wages jointly with Minimum Wages, aiming to raise awareness concerning the remaining differences in levels. Living Wages are presented in context with other wage indicators including prevailing wages of workers over recent years.

  2015 2016 2017 2018
Minimum wage 9200 9900 11000 12200
Living Wage - Single Adult 9620-13300 10700-14300 11700-15700 11400-15500
Living Wage - Typical Family 14000-19200 14600-19700 15400-20900 15000-20500
Real wage of low-skilled worker 11100-13400 11400-13900 12200-14600 13100-15700
Real wage of medium-skilled worker 15900-20200 16400-20900 17400-21900 18700-23700
Real wage of high-skilled worker 23600-29500 24600-31100 25900-32200 28900-36400

Note: Table shows the lowest monthly Minimum Wage in a country, when available. Reported monthly earnings of workers in low-, medium-, and high-skilled occupations are obtained from the voluntary WageIndicator web survey on work and wages. Results in the table are rounded.

Czech Republic Graph

Food basket and food prices in Czech Koruna

The food expenditure is the main component of Living Wage and it is determined by the price of food basket. The food prices are taken from WageIndicator Cost of Living Survey which collects the actual prices of all items necessary to calculate the Living Wage. The composition of the food basket is taken from the national food balance sheets published by the UN Food and Agriculture Organization (FAO). The food basket is scaled to 2,100 calories per person per day that is the nutritional requirement for good health proposed by World Bank (Handbook on poverty and inequality, 2009).

Food item Grams per day Energy (kcal) Price per kilo
Wheat, barley and cereals products 198 546 35-48
Rice 9 32 20-30
Meat (beef, pork, poultry) 139 200 100-139
Oils (soyabean, olive, palm) 34 302 27-29
Sugar (Raw Equivalent) 65 231 20-25
Maize and products 0 0 25-35
Milk - Excluding Butter 358 187 15-17
Vegetables, Other 93 25 22-40
Potatoes and products 139 90 11-15
Butter, Ghee 17 119 100-120
Groundnuts (Shelled Eq) 6 17 24-35
Pulses, Other and products 1 4 44-50
Egg (price per 10 eggs) 21 29 25-29
Sunflowerseed Oil 7 66 30-30
Fish products 16 11 120-140
Beer (0.5 liter/pint) 257 126 26-34
Sweeteners, Other 12 26 15-21
Beans 0 1 38-42
Sweet potatoes 0 0 25-40
Bananas 14 9 26-30
Soyabeans 2 5 50-78
Apples and products 23 11 20-29
Tomatoes and products 24 5 30-40
Onions 15 5 12-17
Oranges, Mandarines 29 7 25-29
Plantains 1 1 30-33
Peas 2 7 30-30
Roots, Other 0 0 30-40
Seeds and kernels 0 1 20-50
Wine (bottle) 17 12 93-132
Pineapples and products 3 1 -
Cream 7 15 50-78
Olives (including preserved) 2 3 48-98
Honey 1 5 120-143
Citrus, Other 1 0 30-50
Lemons, Limes and products 5 1 29-39
Tea (including mate) 0 0 20-33
Grapefruit and products 2 1 30-45
Coffee and products 5 3 65-109

 

WageIndicator Living Wage background:

The WageIndicator Living Wage is set to provide acceptable living standard to a family of a particular size. WageIndicator presents Living Wages for several household types and working hours which reflect the most frequently found real situations in which people have to make a living: 1. Typical family Living Wage is a baseline estimate that respects the country specific conditions. Typical family is comprised of two adults and the number of children is given by country specific fertility rate (the average number of children a woman is expected to have during her lifespan). One adult is working full-time and the working hours of second adult are approximated by national employment rate. The total income earned by two adults paid living wage is sufficient to reach adequate living standard. 2. Standard family Living Wage is estimated for a family composed of two adults and two children (referred to as family 2+2). Living wage is calculated under different assumptions about working hours. These include that both adults work full-time (family employment rate is 2), or at least one adult works part-time or half-time (family employment rate is 1.8 and 1.5), or one adult does not work at all (i.e. patriarchal model with family employment 1). Alternatives refer to trade-offs between leisure and work and define what living wage represents. In every case the total income earned by two adults paid living wage is sufficient to reach adequate living standard. 3. Extended family Living Wage includes family with three or four children. One adult works full-time and the work intensity of second parent is approximated by national employment rate. 4. Individual Living Wage represents an acceptable standard of living for a single individual working full-time.

Data sources: WageIndicator Cost of Living Survey, World Bank Databank Fertility rate 2010-2014, ILO Estimated participation rate in 2017, FAO Food balance sheet in 2013.

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