Payroll Accounting Featured
Minimum wage 2027: CZK 24,900 and everything linked to it
Tým P&T Europe Services 8/14/2026 8 min
The 2027 Czech minimum wage is CZK 24,900 a month and CZK 148.30 an hour (MPSV notice No. 171/2026 Coll.). We explain the indexation mechanism, the coefficients for 2027 and 2028 and all the amounts linked to the minimum wage.
Table of Contents
The 2027 minimum wage is final: CZK 24,900 a month and CZK 148.30 an hour for a 40-hour week. On 7 September 2026 the government approved Regulation No. 164/2026 Coll. with the coefficients for 2027 and 2028, and the exact amount was announced by MPSV notice No. 171/2026 Coll. (in the Collection of Laws since 24 September 2026). Here is how the minimum wage is calculated and what it affects.
How the minimum wage is calculated
Since 1 January 2025 an indexation mechanism under Section 111 of the Labour Code has applied (amendment No. 230/2024 Coll.):
- monthly minimum wage = coefficient × the Ministry of Finance's forecast of the average gross monthly nominal wage for the following year, rounded up to the nearest CZK 100,
- the hourly minimum wage is derived from the monthly one using the average number of working hours in a month,
- the government sets the coefficient by regulation for two years at a time; MPSV then announces the minimum wage by notice in the Collection of Laws by 30 September,
- the indicative reference value is 47% of the average wage. According to MPSV, it aims to reach it in 2029.
Coefficients and amounts
| Year | Coefficient | Monthly minimum wage | Hourly |
|---|---|---|---|
| 2026 | 0.434 | CZK 22,400 | CZK 134.40 |
| 2027 | 0.446 | CZK 24,900 | CZK 148.30 |
| 2028 | 0.458 | set in 2027 | set in 2027 |
For 2027 this is an increase of CZK 2,500 (about 11%). The coefficient for 2028 is already approved, but MPSV will announce the exact amount next year based on a new average-wage forecast.
No more guaranteed wage in the private sector
From 1 January 2025 the lowest guaranteed-wage levels for employees paid a wage were abolished. For private employers the only binding minimum is the minimum wage. The guaranteed salary remains in the public sector; MPSV, however, proposes abolishing it together with new salary scales from 2027 (a proposal, see What is being prepared for 2027 in Czech labour law and payroll).
What the minimum wage affects
- the minimum assessment base for health insurance of an employee equals the minimum wage, so the minimum premium is 13.5% of CZK 24,900 = CZK 3,362 a month (2026: CZK 3,024); people without taxable income pay the same amount,
- the childcare tax credit: it returns from 2027 and its maximum per child equals the minimum wage, i.e. CZK 24,900 (there was no childcare credit in 2024–2026),
- the tax exemption of regularly paid pensions up to 36 times the minimum wage a year: CZK 896,400 (2026: CZK 806,400),
- the tax bonus: annual income of at least six times the minimum wage, i.e. CZK 149,400 (2026: CZK 134,400); the monthly bonus requires monthly income of at least half the minimum wage, i.e. CZK 12,450 (2026: CZK 11,200),
- the difficult-working-environment surcharge: in the private sector at least 10% of the minimum wage (Section 117(2) of the Labour Code); for employees paid a salary a range of CZK 1,245 to 3,735 a month (notice No. 171/2026 Coll.).
Night-work and weekend surcharges are calculated from the employee's average earnings (at least 10%), so the minimum wage does not affect them.
What it means for employers
- Prepare a 2027 payroll-cost budget with a CZK 24,900 minimum wage. With employer contributions (33.8%), the cost increase for a minimum-wage employee works out at roughly CZK 3,345 a month.
- Check employees near the floor and top their pay up to at least CZK 24,900 from January 2027, including the health-insurance top-up to the minimum.
- Review the linked amounts: tax bonus, the childcare credit in the 2027 annual reconciliation and the minimum health premium.
All 2027 payroll limits are in Payroll limits and amounts 2027.
Sources (as of 26 October 2026): Government Regulation No. 164/2026 Coll. on the minimum-wage coefficients for 2027 and 2028, MPSV notice No. 171/2026 Coll. on the 2027 minimum wage, MPSV notice No. 356/2025 Coll. on the 2026 minimum wage, MPSV — the 2027 minimum wage rises to CZK 24,900, MPSV — Minimum wage, Sections 111 and 117 of the Labour Code and Act No. 586/1992 Coll. on Income Taxes (Sections 4, 21g, 35bd, 35c, 35d).
Need your 2027 payroll ready? We are happy to help.
Legal Notice
This article is for informational purposes only and does not replace professional legal or tax advice. Information is processed according to Czech law valid at the date of publication. We always recommend consultation with an expert for specific situations.
Share this article
— About Author
TPES
Tým P&T Europe Services
Specialists in payroll accounting, HR and accounting
