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The minimum wage is set to rise in 2027!

The Ministry of Finance has announced a forecast for the average gross monthly nominal wage for 2027 of 55,627 Kč.

The Government has approved a coefficient of 44.6 per cent for calculating the minimum wage in 2027.

Based on the indexation mechanism enshrined in the Labour Code, the minimum wage will therefore amount to CZK 24,900 per month from 1 January 2027, i.e. CZK 148.30 per hour based on a standard 40-hour working week. The ratio of the minimum wage to the average wage is thus set to rise further.

The increase in the minimum wage will also affect certain payments derived from its level. For example, the allowance for working in a difficult working environment amounts to at least 10 per cent of the minimum wage; thus, with a minimum wage of CZK 24,900 in 2027, this will amount to at least CZK 2,490 per month for each difficult working condition.

At the same time, the minimum health insurance contribution for those for whom the minimum wage constitutes the minimum assessment base will also increase to 3,362 CZK per month. The contribution rate is 13.5 per cent of the minimum wage and is rounded up to the nearest whole crown.

Further changes to the remuneration system are also being prepared in the public sector. The Government has approved a proposal under which, from 1 January 2027, the existing guaranteed wage scheme is to be abolished and the pay scale system amended so that the lowest pay grade is not lower than the minimum wage. The proposal is now due to be debated in the Chamber of Deputies.