Living Wage Series - Czech Republic - September 2019 - 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 70 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 CZK)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food expenses 7240-8940 8040-9930 2010-2480
Housing expenses 10200-14300 10200-14300 6120-8570
Transport expenses 610-1100 610-1100 305-550
Healthcare expenses 1000-2000 1000-2000 250-500
Education expenses 1000-1750 1000-1750 0
Other expenses 1000-1410 1040-1460 435-605
Total Expenditure 21050-29500 21890-30540 9120-12705
Net Living Wage 13156-18438 12161-16967 9120-12705
Gross Living Wage 16500-23100 15200-21200 11400-15900

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in CZK)

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 + 1.6 children, 1.6 working) 16500-23100
Standard family (two parents + 2 children, 1.8 working) 15200-21200
Two parents and two children, 2 working 13700-19100
Two parents and two children, 1.5 working 18200-25500
Two parents and two children, 1 working 27400-38200
Two parents and three children, 1.6 working 18800-25900
Two parents and four children, 1.6 working 20400-27900
Single-adult without children, 1 working 11400-15900

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in CZK)

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.

  2016 2017 2018 2019
Minimum wage 9900 11000 12200 13350
Living Wage - Single Adult 9120-12800 10600-14700 11300-15700 11400-15900
Living Wage - Typical Family 14200-20100 15600-21900 16300-22800 16500-23100
Real wage of low-skilled worker 13900-16800 15400-18700 17000-20800 18900-22500
Real wage of medium-skilled worker 17600-22200 18900-23900 20900-26500 24500-30600
Real wage of high-skilled worker 26800-34300 27900-35500 31800-40900 36200-45600

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.

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Food basket and food prices in CZK

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 35-40
Rice 9 32 20-30
Meat (beef, pork, poultry) 139 200 120-150
Oils (soyabean, olive, palm) 34 302 -
Sugar (Raw Equivalent) 65 231 25-34
Milk - Excluding Butter 367 191 16-18
Vegetables, Other 95 25 20-40
Potatoes and products 139 90 12-15
Butter, Ghee 17 121 -
Groundnuts (Shelled Eq) 6 17 20-45
Pulses, Other and products 1 4 50-56
Egg (price per 10 eggs) 21 30 350-400
Sunflowerseed Oil 7 66 -
Fish products 16 11 120-150
Beer (0.5 liter/pint) 257 126 26-35
Sweeteners, Other 12 26 16-16
Beans 0 1 50-50
Sweet potatoes 0 0 25-28
Bananas 14 9 27-30
Soyabeans 2 5 50-78
Apples and products 23 11 22-28
Tomatoes and products 24 5 35-40
Onions 16 5 14-14
Oranges, Mandarines 29 7 30-35
Plantains 1 1 25-30
Peas 2 8 -
Roots, Other 0 0 40-53
Seeds and kernels 0 1 20-20
Wine (bottle) 17 12 80-105
Pineapples and products 3 1 -
Cream 8 15 55-120
Olives (including preserved) 2 3 -
Honey 2 5 -
Citrus, Other 1 0 27-50
Lemons, Limes and products 5 1 38-40
Grapefruit and products 2 1 27-45
Coffee and products 5 3 109-120

 

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.

WageIndicator useful links:

Publication Guzi, M., & Kahanec, M. (2018). Estimating Living Wage Globally. Amsterdam, WageIndicator Foundation
WageIndicator Wages in Context Map with the latest updates
All You Always wanted to Know about Living Wages
Donations

 


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