Minimum Wage in the Czech Republic to Rise to CZK 22,400 in 2026

Starting in January, the minimum wage in the Czech Republic will increase by CZK 1,600 per month, bringing the gross total to CZK 22,400. The figure, based on the latest forecast from the Ministry of Finance, was confirmed by Minister of Labor Marian Jurečka.

With this change, the minimum full-time wage will exceed 43% of the average national salary – marking the highest share in the country’s history.

The increase follows a government regulation approved last autumn, which stipulates that the minimum wage should reach 43.4% of the average wage in 2026. According to the Ministry of Finance’s macroeconomic outlook, the average wage is expected to reach CZK 51,497.

“This year’s increase is CZK 1,600. We’re now in the second year of a period when the minimum wage is rising at the fastest pace, and the purchasing power of people on the lowest incomes is growing,” said Jurečka.

Automatic Calculation Introduced This Year

In 2025, the Czech Republic calculated the minimum wage automatically for the first time. Compared to the previous year, it rose by CZK 1,900 — from CZK 18,900 in 2024 to CZK 20,800 as of January 2025.

Currently, around 118,000 people — roughly three percent of the workforce — earn the minimum wage. Alongside this increase, the lowest guaranteed salaries in the public sector have also gone up by nearly eight percent.

Minimum Wage Growth Outpaces Pension Increases

In the Czech Republic, the minimum wage is rising significantly faster than the average pension. This year, the minimum wage stands at CZK 20,800 — over 10% more than last year. In contrast, the average old-age pension has increased by only 2%.

Unlike wages, the average old-age pension is not subject to taxation. Therefore, a more accurate comparison is between the average pension and the net minimum wage — the actual amount a minimum-wage employee receives in their bank account.

When comparing these two figures, it’s clear that the incomes of the lowest-paid workers are growing much more rapidly. This trend is expected to continue, as starting in 2026, changes to the pension calculation formula will gradually make it less favorable. Specifically, the value of credits in the first reduction tier and the credit per year of insurance will be reduced over time.

Minimum Wage Pressure Rising Across Eastern Europe

As minimum wages continue to rise sharply in other Eastern European countries, the pressure to increase wages in the Czech Republic will likely grow in the coming years. For example, Poland’s minimum wage was PLN 3,490 (approx. CZK 20,434) at the beginning of 2023. By this year, it has already climbed to PLN 4,666 (approx. CZK 27,319). This trend suggests that personal financial responsibility in retirement will become increasingly important in the future.

In 2021, the ratio of the minimum net wage to the average pension jumped to 88.1%. This was largely due to the abolition of the super-gross wage, which caused a sharp year-on-year rise in the net minimum wage.

In 2023, the average old-age pension rose by CZK 3,212 compared to 2022, driven by two extraordinary indexations during the previous year. As a result, the minimum net wage for 2023 was only 79.0% of the average pension.

In 2025, the minimum wage will increase by CZK 1,900 compared to 2024 – the largest annual increase in nominal terms since the introduction of the minimum wage. However, the average pension will rise by just CZK 419, bringing the minimum net wage to 84.7% of the average pension – a level not seen since 2018.

Need help navigating wage regulations or financial planning for your business? Reach out to 360WEDO Consulting. Our experts support entrepreneurs and employees in the Czech Republic with clear, up-to-date guidance.

https://www.novinky.cz/clanek/ekonomika-minimalni-mzda-se-pristi-rok-zvysi-40535517