For next year, the minimum wage will be 42.2% of the average wage, and in 2026, the ratio is expected to be 43.4%. However, the regulation approved by the cabinet does not itself raise the minimum wage; it only sets the values for its calculation. The minimum wage for next year will be announced by the Ministry of Labour in the Collection of Laws by the end of September.

In 2024, the minimum wage is CZK 18,900 per month and 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 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.”

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.

Source: CTK

Prepared by the team of foreign offices CzechTrade Osaka and Tokyo