Minimum Wage in the EU and the Czech Republic: Growth Trends
14.08.2025
14.08.2025
In 2025, the minimum wage in the Czech Republic has gone up again. The Ministry of Labour and Social Affairs (MPSV) now uses an indexation mechanism to calculate the monthly and hourly minimum wage each year. But what exactly is the minimum wage this year? And how does it compare with other EU countries like Germany, Austria, Slovakia, or Poland?
Minimum Wage in the Czech Republic
The Ministry defines the minimum wage as the lowest legally acceptable amount an employee can be paid for their work. It’s meant to protect workers from falling into poverty while still ensuring they can afford a modest standard of living, including basic material needs and social participation. The legal framework is outlined in Act No. 230/2024.
The minimum wage applies to all workers in the business sector, whether they are:
- Employed full-time or part-time,
- Working under standard employment contracts or agreements outside of traditional employment (such as DPP or DPČ).
Each employment relationship – regardless of whether it’s temporary, permanent, or overlapping with other contracts – entitles the employee to at least the minimum wage. In workplaces where collective bargaining takes place, collective agreements may set a higher minimum wage than the national one.
As of January 2025, the gross minimum wage in the Czech Republic has increased by CZK 1,900 to CZK 20,800 per month for a 40-hour workweek. This marks the largest nominal increase since the minimum wage was first introduced in 1991, surpassing the previous record from 2024, when it rose by CZK 1,600.
Minimum wage dynamics
The minimum wage in the Czech Republic has grown significantly in recent years. In 2020, it was CZK 14,600, while in 1991, when the minimum wage was first introduced, it was set at CZK 2,000.
As of 2025, the amount is now calculated using an indexation mechanism introduced by an amendment to the Labour Code (Act No. 230/2024). This amendment defines how the minimum wage should be calculated and sets the conditions for determining the coefficient used in the calculation. The coefficient is set by the government for a two-year period by regulation.
Net minimum wage in the Czech Republic in 2025
What is the net minimum wage? In other words, how much does an employee actually take home after deductions for:
- income tax,
- social security,
- sickness insurance, and
- health insurance?
Due to these mandatory deductions, most employees receive less than the gross CZK 20,800 per month. Only employees who qualify for higher tax bonuses may receive a higher net amount.
You can calculate your net salary using an online wage calculator. For example:
- An employee with one child (and no other tax benefits) receives a net minimum wage of CZK 19,104, which is approximately EUR 780 / USD 910.
- A childless employee receives a net minimum wage of CZK 17,837, or around EUR 730 / USD 850.
Minimum wage under DPP and DPČ
The minimum wage set by the state applies not only to employees in standard employment relationships, but also to so-called contract workers — individuals working on the basis of a Contract for the Performance of Work (DPP) or a Contract for Work Activity (DPČ).
Just like other employees, contract workers in the Czech Republic are entitled in 2025 to:
- a minimum monthly wage of CZK 20,800 (based on a 40-hour work week),
which equals approximately EUR 850 / USD 990, - and a minimum hourly wage of CZK 124.40,
which is about EUR 5.10 / USD 5.90.
In addition to the minimum wage, since last year, contract workers are also entitled to paid vacation. This applies if the contract period exceeds 28 calendar days and the employee has worked at least 80 hours.
Minimum hourly wage in 2025
The minimum hourly wage is calculated as the ratio of the monthly minimum wage to the average number of working hours per month in the calendar year. In 2025, this hourly rate is CZK 124.40, or approximately EUR 5.10 / USD 5.90.
This amount applies to employees working a 40-hour week. However, the Labour Code also allows for different weekly work limits. For example:
- for two-shift operations: 38.75 hours/week,
- for continuous or multi-shift operations: 37.5 hours/week.
If the weekly working hours are reduced (without reducing wages), the minimum hourly wage increases accordingly. This ensures that employees receive the same minimum wage for the week or month, regardless of how many hours they work per week.
Minimum wages abroad
How does the Czech Republic compare to other countries? Among its neighbors, only Slovakia has a similar minimum wage. In a broader European context, the Czech Republic still lags behind in terms of basic earnings.
🇩🇪 Germany
Minimum wage in 2025: €12.82/hour
Germany introduced its minimum wage relatively recently, in 2015. As of January 1, 2025, it has been raised to €12.82/hour, which is about CZK 322.
In certain industries (e.g. construction, care, electrical work), collective agreements set even higher minimums. The law applies to both German and foreign workers — including employees sent by Czech companies.
🇦🇹 Austria
Minimum wage in 2025: not set nationally
Austria does not have a statutory minimum wage. However, in nearly every industry, a minimum wage is guaranteed by collective bargaining agreements between trade unions and employers.
In all sectors, the collectively agreed minimum wage is above €1,500/month, or roughly CZK 36,800.
🇸🇰 Slovakia
Minimum wage in 2025: €816/month
Slovakia increased its minimum wage in 2025 to €816/month, up from €750 in 2024.
This brings it close to the Czech level — approximately CZK 20,510.
🇵🇱 Poland
Minimum wage in 2025: PLN 4,666/month
Poland now outpaces the Czech Republic in terms of minimum wage. In 2025, Polish workers earn at least PLN 4,666/month, which equals about CZK 27,400 or €1,118.
The gap has widened in recent years — in 2020, both countries had comparable minimum wages. In 2024 alone, Poland raised its minimum wage twice: to PLN 4,242 in January and PLN 4,300 in July.
🇨🇭 Switzerland
Minimum wage in 2025: CHF 21.31/hour (in Neuchâtel)
Switzerland does not have a national minimum wage, but some cantons set their own. In Neuchâtel, the minimum wage has been set at CHF 21.31/hour since January 1, 2025. That’s approximately CZK 548 or €21.75/hour.
Even in cantons without a fixed minimum, wages are high and taxation is generally lower than in Western Europe.
Need help navigating employment law, contracts, or salary standards in the Czech Republic? Our team at 360WEDO offers expert consulting services for entrepreneurs, employees, and job seekers. Get in touch and make informed decisions with confidence.
Sources:
https://www.e15.cz/minimalni-mzda
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