The Czech centre-left ruling coalition agreed on Friday to a public sector wage hike that will increase government spending after economists warned that budget revenue projections may come short.
The pay decision, which covers around 290,000 state employees, will allow the government to complete its draft budget for next year.
The wage increase was agreed upon on Friday and will give state workers from bureaucrats to cleaners a fixed monthly increase of 1,500 crowns ($64). This is expected to increase budget spending to 5.2 Billion crowns ($223 million) by 2020.
The Czech economy was held up like others in Central Europe amid global slowdown due to strong domestic demand fuelled by low employment and rising wages.
The government is scheduled to debate on the 2020 budget on Monday before approving it to be sent to parliament.