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AmCham Year-End Report 2020-2021: From the first days, we tried to make the connections and propose solutions that worked.
Dear Members,
When we sit down to write intros for yearend publications, we typically want to convince the reader that this was somehow an exceptional year.
This year we do not need to try very hard. The coronavirus disrupted business in ways that no worst case scenario could estimate. The board, our councils and committees, Weston and I spent more time this year trying to find answers that would keep companies in business and people employed than any of us could have imagined in January 2020.
What are the consequences (in the Czech Republic) of late wage payments via cashless transfer?
Payments via cashless transfer may have become the utterly mundane standard, but the devil is in the detail, so it’s best to painstakingly follow the rules, especially in labor-law relations. Falling behind pay day may expose employers to claims for damages.
HR Legal Alert - Antivirus Programme Extension
- Mode A
- Mode B
- Antivirus will be valid until 30 June 2022
- Reintroduction of the crisis care allowance
- The return of the isolation allownance
- Minimum wage increase
Inflation hit 6%; without the VAT waiver on energy it would be 7%
Inflation rose in November in line with market expectations, but well above the Czech National Bank's forecast. Price increases were driven by fuel and food, while housing costs fell due to the waiver of VAT payments on energy. Without it, inflation would be 7% yoy. We expect the CNB's repo rate to increase to 3.25% in December and 3.75% in February.
Czech wages increased by 5.7% yoy in 3Q21
Czech average wage growth slowed from 11.4% yoy in 2Q to 5.7% yoy in 3Q. This was due to the higher base of 3Q20, when the economy had already partly recovered, as well as to the fading effect of the second round of extraordinary bonuses paid in health and social care in 2Q. However, elevated inflation significantly downsized real wage growth, which was only 1.5% yoy in 3Q.
Strategic Directions for Czech Economic Policy
- Transition to High-Tech Manufacturing and Exports
- The City Campus as Idea Factory
- Government Programs and Processes That Drive Innovation
- Government as a Competitive Advantage, including Digitization
Advocacy Priorities for 2023
Technology, People, Infrastructure
Actions Recommended in Areas:
1. Establishing Policy Objectives for Research.
2. Research Investment and Cooperation. Big Bets (Key Technology Projects).
3. Establishing Databases for Tracking Public Policy Outcomes.
4. Public Procurement as an Innovation Tool.
5. Immigration of STEM Talents.
6. Digitization of Immigration.
7. Adult Reskilling and Upskilling.
8. Digitization of Land Use.
9. Infrastructure Development, including Technology Parks.
Read the documents in English and Czech.
Policy pipeline
In Policy Pipeline policy developments in the Czech Republic and abroad are monitored to bring better understanding of current topics and trends.