Minimum Wage in the Czech Republic in 2026

The minimum wage is the lower limit set by the state for the remuneration of an employee for fully worked working hours. This category has a complex meaning both from the point of view of labour and social law and in the context of taxation, calculation of insurance contributions and determination of a number of social obligations. As of 1 January 2026, the statutory minimum wage in the Czech Republic increased to CZK 22,400 gross per month, equivalent to CZK 134.40 per hour for a standard 40-hour working week.

The minimum wage is regulated by Section 111 of the Czech Labour Code (Act No. 262/2006 Coll.) and is determined through a statutory adjustment mechanism introduced by Act No. 230/2024 Coll.

Under this mechanism, the Government establishes coefficients for calculating the minimum wage for two consecutive years. These coefficients are applied to the Ministry of Finance’s forecast of the average gross monthly wage in the national economy.

For 2026, the applicable coefficient was 0.434, and the minimum wage was officially announced through Communication No. 356/2025 Coll. of the Ministry of Labour and Social Affairs.

The mechanism is intended to improve predictability and transparency in minimum wage adjustments while gradually increasing the relationship between the minimum wage and the national average wage. The purpose of the innovation is to ensure predictability, transparency and compliance of the level of minimum income with socio-economic realities.

Established Minimum Wage Rates for 2026

According to Communication No. 356/2025 Coll. issued by the Czech Ministry of Labour and Social Affairs, the following minimum wage rates apply from 1 January to 31 December 2026:

Minimum monthly wage: CZK 22,400 gross for full-time employment based on a standard 40-hour working week.

Minimum hourly wage: CZK 134.40.

Annual gross minimum wage: CZK 268,800 for 12 months of full-time employment.

Increase compared with 2025: CZK 1,600 per month, representing approximately 7.7%.

Previous minimum wage in 2025: CZK 20,800 per month or CZK 124.40 per hour.

The minimum wage applies to employment in both the private and public sectors, including qualifying employment arrangements outside standard employment contracts.

Where the statutory weekly working time is shorter than 40 hours because of the applicable work schedule, the hourly minimum wage must be adjusted in accordance with the Czech Labour Code.

Employees working under individually agreed part-time arrangements are entitled to remuneration calculated in accordance with their working hours and the applicable minimum wage requirements.

Legal and practical aspects of application

Under Section 111 of the Czech Labour Code, the statutory minimum wage applies to employees working under standard employment contracts and qualifying agreements for work performed outside an employment relationship, including agreements to complete a job (DPP) and agreements on working activity (DPČ).

The minimum wage applies irrespective of the employee’s nationality. However, genuinely self-employed persons operating under commercial or civil-law contracts are not automatically covered by the statutory minimum wage applicable to employees.

For employees working part-time, remuneration must comply with the minimum wage requirements in proportion to the agreed and actual working hours.

When calculating compliance with the minimum wage, employers must exclude statutory additional payments for overtime, work on public holidays, night work, work in difficult working environments and work on Saturdays and Sundays, as well as other specified supplements.

If an employee’s eligible remuneration is below the applicable minimum wage, the employer must provide a supplementary payment covering the difference.

Different hourly minimum wage calculations may apply where the established statutory weekly working time is shorter than 40 hours.

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Guaranteed wages and occupational classifications

Since 1 January 2025, the Czech Republic has distinguished between the statutory minimum wage applicable to all employees and the guaranteed salary system applicable to employees remunerated under the public-sector salary regime.

The previous guaranteed wage system for private-sector employees was abolished from 1 January 2025. Private-sector employers remain subject to the statutory minimum wage and any higher remuneration obligations established by collective agreements, employment contracts or other applicable legal provisions.

For 2026, the guaranteed salary system under Section 112 of the Czech Labour Code establishes four categories based on the complexity, responsibility and demands of the work performed.

The minimum guaranteed monthly salaries for a standard 40-hour working week are:

Group 1: CZK 22,400 per month (CZK 134.40 per hour).

Group 2: CZK 26,880 per month (CZK 161.30 per hour).

Group 3: CZK 31,360 per month (CZK 188.20 per hour).

Group 4: CZK 35,840 per month (CZK 215.10 per hour).

The applicable category is determined by the classification of the employee’s work under the relevant public-sector employment regulations.

The guaranteed salary system does not automatically apply to every employee of an organisation receiving public funding. Its applicability depends on the legal employment and remuneration regime governing the employee.

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Impact on the calculation of taxes and insurance contributions

The statutory minimum wage affects certain health insurance obligations, tax thresholds and employment-related calculations in the Czech Republic. However, it is important to distinguish between the minimum wage and the national average wage, as different statutory obligations are calculated using different reference amounts.

The principal rules applicable in 2026 include:

Health Insurance for Persons Without Taxable Income: Individuals classified as persons without taxable income (OBZP) who are required to pay their own public health insurance contributions must pay CZK 3,024 per month. This amount represents 13.5% of the 2026 minimum wage of CZK 22,400.

Employee Health Insurance: The minimum monthly health insurance assessment base is generally CZK 22,400, resulting in minimum insurance contributions of CZK 3,024 where the statutory minimum assessment requirement applies. Certain employees qualify for exemptions from this minimum assessment base.

Self-Employed Health Insurance: The minimum monthly health insurance advance for self-employed persons conducting their main activity is CZK 3,306 in 2026. This amount is calculated using the national average wage rather than the statutory minimum wage.

Self-Employed Social Insurance: Minimum pension insurance advances are generally calculated by reference to the national average wage and the applicable statutory assessment base. From 1 July 2026, the general minimum monthly pension insurance advance for self-employed persons conducting their main activity decreased from CZK 5,720 to CZK 5,005, following a reduction in the minimum assessment base from 40% to 35% of the national average wage. Special rules apply to qualifying new entrepreneurs and secondary self-employment.

Tax-Related Thresholds: Certain personal income tax allowances, pension exemptions and eligibility thresholds for tax bonuses are linked to the statutory minimum wage, while other tax and social insurance limits depend on the national average wage.

Employers and self-employed individuals must identify the correct statutory reference amount when calculating payroll, insurance contributions and tax obligations.

Implications for employers and employees

Increasing the minimum wage has the following consequences:

• Revision of staffing tables and employment contracts, especially in segments where pay is close to the minimum wage;
• Increasing the payroll, especially in small and medium-sized businesses;
• Adjustments to internal payroll procedures, including for tax and insurance reporting;
• For foreign workers, the need to comply with migration requirements, as the minimum wage is often used as a condition for issuing work permits and residence permits.

Prospects for further changes

The Czech Ministry of Labour and Social Affairs has established a medium-term objective of increasing the statutory minimum wage to approximately 47% of the national average gross wage by 2029.

The minimum wage adjustment mechanism introduced in 2024 provides for the Government to establish calculation coefficients for two consecutive years, with the Ministry of Labour and Social Affairs announcing the resulting minimum wage annually.

For 2026, the minimum wage is CZK 22,400 per month.

On 7 September 2026, the Czech Government approved the coefficients for 2027 and 2028. The resulting minimum wage for 2027 was officially announced through Communication No. 171/2026 Coll., published on 24 September 2026.

The minimum wage for 2027 will be CZK 24,900 per month, equivalent to CZK 148.30 per hour for a standard 40-hour working week.

The approved coefficient for 2028 is 0.458, and the Government has indicated a projected monthly minimum wage of approximately CZK 26,900, subject to the statutory calculation and official announcement procedure.

Future minimum wage increases are determined through the legal adjustment mechanism rather than a fixed annual percentage increase of 8–10%. It is important for employers to keep track of regulatory changes and adapt internal documents in time to avoid potential offences and penalties related to non-compliance with minimum wage legislation.

Changes in the Minimum Wage in the Czech Republic from 2015 to 2026

The minimum wage in the Czech Republic has undergone a steady evolution over the last ten years, reflecting economic transformation, growth in labour productivity and the state’s desire to provide social guarantees to the working population. As a mandatory element of labour law, the minimum wage is set by government decree and applies to all employees, regardless of the form of employment relationship, qualifications or citizenship. Between 2015 and 2026, the statutory minimum wage in the Czech Republic increased from CZK 9,200 to CZK 22,400 gross per month, representing an increase of approximately 143.5%.

Over the same period, the minimum hourly wage increased from CZK 55 to CZK 134.40.

The increase reflects changes in economic conditions, wage development and the Government’s policy of gradually raising the minimum wage relative to the average wage.

In 2024, the Czech Labour Code was amended to introduce a statutory adjustment mechanism for minimum wage calculations from 2025 onwards.

The Government’s medium-term objective is to increase the relationship between the minimum wage and the average gross wage to approximately 47% by 2029. In the first years (2015-2017), the increase in the minimum wage occurred at an accelerated pace. For example, in 2017, the increase amounted to 1,100 kroner at once – an increase of more than 11 %. This was possible due to a stable macroeconomic situation and a decrease in unemployment. From 2018 to 2020, the positive trend continued, with annual increases of between 1,150 and 1,250 kronor. The minimum wage increased by CZK 600 in 2021, followed by larger annual adjustments in subsequent years.

In 2024, the minimum monthly wage increased to CZK 18,900. Legislative amendments adopted during that year introduced a statutory adjustment mechanism that became operational for the determination of the minimum wage from 2025.

The minimum wage subsequently increased to CZK 20,800 in 2025 and CZK 22,400 in 2026.

The 2026 increase amounted to CZK 1,600 per month, or approximately 7.7%.

The updated calculation mechanism is based on the forecast average gross wage and coefficients established by the Government, providing a more predictable process for determining future minimum wage rates.

Table of Changes in the Minimum Wage in the Czech Republic, 2015–2026

The minimum wage affects not only the level of income of employees, but also the amount of insurance and tax obligations. It serves as a basis for calculating minimum health and social insurance contributions for persons not employed in labour relations, as well as for determining the limits of non-taxable benefits and allowances. For example, when determining the minimum insurance contribution for self-payers or persons with no other income, it is the minimum wage that is used as the base. The statutory minimum wage is also relevant to the employment of third-country nationals in the Czech Republic.

For an Employee Card (zaměstnanecká karta), the applicant must generally provide evidence of an eligible employment relationship, such as an employment contract or an agreement on working activity (DPČ).

The employment documentation must demonstrate that the agreed weekly working time is at least 15 hours and that the monthly remuneration exceeds the basic statutory monthly minimum wage, regardless of the number of working hours.

In 2026, this means that the agreed monthly remuneration must exceed CZK 22,400 gross.

An agreement to complete a job (DPP) cannot serve as the qualifying employment document for an Employee Card application.

Additional requirements concerning job vacancies, professional qualifications, residence status and employment authorisation may apply depending on the applicant’s circumstances.

Different salary thresholds and qualification conditions apply to other immigration categories, including the EU Blue Card.

Институт права Чехии

The statutory minimum wage adjustment mechanism was introduced through amendments adopted in 2024 and first applied to the determination of minimum wage rates for 2025.

Under the Czech Labour Code, the Government establishes coefficients for calculating the minimum wage, which are applied to the Ministry of Finance’s forecast average gross monthly wage.

The resulting minimum wage must be officially announced by the Ministry of Labour and Social Affairs.

As of October 2026, the minimum monthly wage is CZK 22,400. The rate for 2027 has already been officially established at CZK 24,900, while the Government has approved a coefficient of 0.458 for calculating the 2028 minimum wage.

The medium-term policy objective is to achieve a minimum wage equivalent to approximately 47% of the national average gross wage by 2029.

The exact minimum wage for 2029 has not yet been legally established and will depend on the applicable government coefficient and the official forecast of average wages. Thus, the minimum wage in the Czech Republic has shown a steady upward trend over the past ten years. Its increase has not only social but also fiscal significance, affecting all key elements of labour and tax regulation. It is especially important for employers to take into account changes in the minimum wage in time when drafting labour contracts, forming the payroll, as well as within the framework of HR and migration compliance.

What influences the minimum and average wage in the Czech Republic?

The minimum and average wage affects not only labour remuneration but also a number of other aspects.

Health and social insurance

Health and social insurance obligations in the Czech Republic are calculated using different statutory assessment bases, including the national average wage and, in specific circumstances, the minimum wage.

The principal thresholds applicable in 2026 are:

Minimum Health Insurance for Self-Employed Persons: CZK 3,306 per month for qualifying self-employed persons carrying out their main activity, subject to applicable exceptions.

Minimum Pension Insurance for Self-Employed Persons: From 1 July 2026, the general minimum monthly advance for self-employed persons carrying out their main activity is CZK 5,005, following a reduction from CZK 5,720. The statutory amendment reduced the minimum monthly assessment base from 40% to 35% of the national average wage, with retroactive implications for the 2026 insurance calculation.

Qualifying New Entrepreneurs: A reduced minimum monthly pension insurance assessment base may apply to eligible individuals starting their main self-employed activity. The corresponding 2026 minimum advance is CZK 3,575, subject to the applicable conditions.

Maximum Annual Social Insurance Assessment Base: CZK 2,350,416 in 2026.

Persons Without Taxable Income (OBZP): The minimum monthly public health insurance contribution is CZK 3,024, calculated as 13.5% of the statutory minimum wage of CZK 22,400.

Agreements to Complete a Job (DPP): The monthly income threshold for compulsory participation in sickness insurance is CZK 12,000 in 2026.

Other Qualifying Employment Arrangements: The general monthly income threshold for participation in sickness insurance remains CZK 4,500 in 2026.

The relevant insurance obligations depend on the legal classification of the employment relationship, the individual’s insured status, the nature of self-employment and the applicable statutory exemptions.

Personal income tax

The Czech Republic applies personal income tax rates of 15% and 23%, with the higher rate applying to the part of the taxable base exceeding the relevant statutory threshold.

For the 2026 tax year, the principal thresholds are:

Higher Personal Income Tax Rate: The 23% rate applies to the portion of the annual taxable base exceeding CZK 1,762,812.

Monthly Payroll Tax Threshold: The corresponding monthly threshold for applying the 23% rate is CZK 146,901.

Standard Personal Income Tax Rate: The 15% rate applies to the portion of the taxable base not exceeding the statutory threshold.

Exemption Threshold for Regularly Paid Pensions: CZK 806,400 annually, equivalent to 36 times the 2026 statutory minimum monthly wage.

Minimum Annual Employment Income for Child Tax Bonus Eligibility: CZK 134,400, corresponding to six times the statutory minimum monthly wage, subject to other applicable eligibility requirements.

The threshold for the higher personal income tax rate is calculated using the national average wage, while certain pension exemptions and tax bonus eligibility requirements are linked to the statutory minimum wage.

These thresholds must be applied in accordance with the Czech Income Taxes Act (Act No. 586/1992 Coll.) and applicable tax administration rules.

Employee benefits

Under the Czech Income Taxes Act, qualifying non-monetary benefits provided by employers may be exempt from personal income tax within statutory limits calculated using the national average wage.

For 2026, the principal annual exemption thresholds are:

Health-Related Benefits: Up to CZK 48,967 annually for qualifying non-monetary healthcare and health-related benefits.

Recreational, Cultural and Sports Benefits: Up to CZK 24,483.50 annually for qualifying non-monetary benefits, including eligible recreational, cultural and sports activities.

The exemptions are subject to statutory conditions concerning the nature of the benefit, its method of provision and the applicable tax treatment.

Individuals registered with the Czech Labour Office as jobseekers may, under specified conditions, undertake limited employment without losing their registration status.

For 2026, the maximum permitted gross monthly remuneration under the relevant compatible employment rules is CZK 11,200, equivalent to half of the statutory minimum wage.

Additional restrictions apply to the permitted employment arrangements and the payment of unemployment benefits.

Minimum Wage per Hour in the Czech Republic in 2026

The statutory minimum hourly wage in the Czech Republic is CZK 134.40 from 1 January to 31 December 2026, based on a standard 40-hour working week.

The minimum monthly wage is CZK 22,400 gross.

The minimum wage also affects several statutory tax and insurance thresholds:

Pension Income Exemption: The annual exemption threshold for qualifying regularly paid pensions is CZK 806,400, corresponding to 36 times the monthly minimum wage.

Health Insurance for Persons Without Taxable Income: The minimum monthly contribution is CZK 3,024, representing 13.5% of the minimum wage.

Child Tax Bonus Eligibility: The minimum annual qualifying employment income is CZK 134,400, equivalent to six times the statutory monthly minimum wage, subject to other statutory conditions.

Compatible Employment for Registered Jobseekers: The maximum permitted gross monthly remuneration is generally CZK 11,200, equivalent to half of the monthly minimum wage, subject to the applicable employment restrictions.

The statutory minimum wage is expressed as a gross amount before employee social security contributions, health insurance contributions and applicable personal income tax.

Basic Salary and Employment-Related Tax Thresholds in the Czech Republic in 2026

The statutory minimum wage and the national average wage are important reference amounts for calculating personal income tax, social security contributions, health insurance obligations and certain employment-related benefits.

The principal figures applicable in 2026 include:

Minimum Gross Monthly Wage: CZK 22,400 for a standard 40-hour working week.

Minimum Gross Hourly Wage: CZK 134.40.

Higher Personal Income Tax Threshold: The 23% personal income tax rate applies to the portion of annual taxable income exceeding CZK 1,762,812. The corresponding monthly payroll threshold is CZK 146,901.

Maximum Annual Social Insurance Assessment Base: CZK 2,350,416.

Tax-Exempt Employee Benefits: Qualifying recreational, cultural and sports benefits may be exempt up to CZK 24,483.50 annually, while qualifying health-related benefits may be exempt up to CZK 48,967 annually.

DPP Insurance Threshold: Income under an agreement to complete a job (DPP) generally becomes subject to compulsory sickness insurance when the monthly remuneration reaches CZK 12,000.

General Minimum Pension Insurance Advance for Self-Employed Persons: CZK 5,005 per month from July 2026 for qualifying self-employed persons conducting their main activity. The reduction from CZK 5,720 follows the statutory amendment lowering the minimum assessment base.

Qualifying New Entrepreneurs: A reduced minimum pension insurance advance of CZK 3,575 may apply, subject to statutory eligibility conditions and rules concerning exemptions from advance payments.

Minimum Health Insurance Advance for Self-Employed Persons: CZK 3,306 per month for qualifying persons conducting their main activity.

Minimum Health Insurance for Persons Without Taxable Income: CZK 3,024 per month.

Flat-Rate Tax Regime (Paušální Daň): From 1 July 2026, the monthly payment in the first band decreased from CZK 9,984 to CZK 9,162, with retroactive effect from 1 January 2026. Eligible taxpayers who paid the higher amount during the first six months of 2026 may be entitled to an overpayment adjustment or refund.

These figures apply subject to the relevant statutory eligibility conditions, exemptions and individual circumstances. Employers and self-employed individuals should distinguish between amounts calculated using the statutory minimum wage and those based on the national average wage when determining tax and insurance obligations.