Czech Republic approves minimum wage increase for 2027

At a glance

• The Czech government has approved an increase in the statutory minimum wage to CZK24,900 per month from 1 January 2027.
• The corresponding hourly minimum wage will increase to CZK148.30 for employees working a standard 40-hour week.
• The increase is calculated using the indexation mechanism established under the Labour Code, which is intended to provide a predictable and transparent approach to setting the minimum wage.
• The government has approved minimum wage calculation coefficients of 0.446 for 2027 and 0.458 for 2028.
• The change is part of a longer-term objective to increase the minimum wage's ratio to the average wage, with a target of 47% by 2029.