The Czech government decided yesterday how the minimum wage should grow over the next two years, the Labour Ministry announced. The coefficients for the increase have been set so that the lowest earnings will gradually rise to 47% of the average wage by 2029, from the current 41%.
For next year, the minimum wage would thus be 42.2%, rising from this year’s CZK 18,900 to CZK 20,800 in January. In 2026, the ratio should be 43.4%, the ministry said.
The regulation approved by the cabinet today does not itself raise the minimum wage, but sets values for its calculation.
For this year, the minimum wage is CZK 18,900 per month. The hourly wage is CZK 112.50. The predicted average monthly wage for next year is CZK 49,233. After multiplying by the coefficient, the minimum wage should rise to CZK 20,800 from January, a minimum of CZK 124.40 per hour.
The Ministry of Labour will announce the minimum wage for next year in the Collection of Laws by the end of September.
“The draft government regulation is based on the current medium-term objective of the Ministry of Labour,” the ministry said in the documents for the regulation. “This means gradually increasing the ratio of the minimum and average wages in a steady manner so that it can reach 47% in 2029, which, if these dynamics are maintained in the future, means an annual increase of 1.2 percentage points.”
At this rate of increase, the minimum wage will be equivalent to 42.2% of the average wage next year and 43.4% in 2026. The average wage is determined by the end of August each year by the Ministry of Finance. The Labour Ministry said that according to the August prediction, the minimum wage could reach CZK 22,500 next year.
The guaranteed wage, which represents the minimum earnings for each profession according to its difficulty and responsibility, and which is paid in eight levels from the minimum wage to double that amount, will be abolished in companies from next year, though they will remain applicable in the public sphere. These will now be in four levels: the minimum wage and multiples of 1.2, 1.4 and 1.6. These four levels should thus amount to CZK 20,800, CZK 24,960, CZK 29,120 and CZK 33,280. On an hourly rate, they are equivalent to CZK 124.40, CZK 149.30, CZK 174.20 and CZK 199.10.
Companies will see their wage costs rise by CZK 3.5 billion in 2025. The public sector should have CZK 17.1 billion extra for minimum and guaranteed salaries. Of this, the state would receive CZK 1.2 billion in levies from companies and CZK 5.76 billion from the public sector.
The Ministry of Labour’s documentation notes that the earnings level and the minimum wage in the Czech Republic are among the lowest in the EU, and the coefficients for the increase will bring Czech incomes closer to those in other European countries. According to the ministry, the Czech Republic had one of the lowest minimum wages in the EU.
