As of January 2027, the minimum monthly wage is set to rise by CZK 2,500, from the current CZK 22,400 to CZK 24,900 (approximately € 1.022,42). Which is equivalent to 44.6% of the average wage.
A further increase is expected in 2028, when the minimum wage should reach CZK 26,900 per month. Such increase would correspond to 45.8% of the average wage. These adjustments form part of the statutory mechanism for the automatic indexation of the minimum wage. Said mechanism aims to bring it to 47% of the average wage by 2029.
According to the Ministry of Labour, approximately 181,000 employees currently earn the minimum wage, representing around 4.9% of the workforce.
Impact on employers and public finances
The planned increases will result in higher labour costs for employers. According to estimates from the Ministry of Labour, the 2027 adjustment will increase employers’ wage costs by approximately 5.9 billion crowns. The additional burden on the state and public budgets is estimated at 20.6 billion crowns.
EU context and adequacy of the minimum wage
The planned increases are aligned with the EU Directive on adequate minimum wages. The Directive identifies reference values of 60% of the median gross wage or 50% of the average gross wage.
Despite the planned increases, concerns remain regarding the adequacy of the minimum wage in the Czech Republic. A recent national assessment found that the net minimum wage was insufficient to cover basic living expenses, highlighting the ongoing debate over the adequacy of minimum wage levels.