Minimum wage 2027: the new coefficient and an estimate around CZK 25,000

In June 2026 the Czech Ministry of Labour and Social Affairs (MPSV) proposed the coefficients for calculating the minimum wage for 2027 and 2028. On 24 August 2026, at an extraordinary plenary session of the tripartite council, representatives of the government, unions and employers agreed on their final form — the 2027 minimum wage is set to rise to CZK 24,900 a month. It still needs to be formally confirmed by a government regulation and a follow-up MPSV notice in the Collection of Laws, by 30 September 2026 at the latest. Here is how the minimum wage is calculated today, what has been agreed for 2027, and everything the minimum wage affects.

An amendment to the Labour Code (Act No. 230/2024 Coll.) introduced an automatic valorisation mechanism from 1 January 2025. The monthly minimum wage is no longer a political decision but a formula under Section 111 of the Labour Code: - monthly minimum wage = coefficient × forecast of the average gross monthly nominal wage (the forecast is prepared by the Ministry of Finance), rounded up to whole hundreds of crowns, - the hourly minimum wage = the monthly minimum wage divided by the average number of working hours per month (at a 40-hour week), rounded up to ten-heller units, - a reference value of 47 % of the average gross wage is used to assess adequacy, and the ratio should gradually approach it, - the coefficient is set by government regulation, and the minimum-wage amount for the following year is announced by the ministry in the Collection of Laws by 30 September. The coefficients so far were set by Government Regulation No. 285/2024 Coll.: 0.422 for 2025 and 0.434 for 2026.

- monthly: CZK 22,400, - hourly: CZK 134.40 (for a standard 40-hour week). Calculation: forecast average wage CZK 51,497 × coefficient 0.434 = CZK 22,400 after rounding (announced by MPSV notice No. 356/2025 Coll.).

The ministry proposed the coefficients in June 2026. On 24 August 2026, at an extraordinary plenary session of the tripartite council, representatives of the government, unions and employers agreed on their final form: - 0.446 for 2027 (44.6 % of the average wage), - 0.458 for 2028 (45.8 % of the average wage). With a coefficient of 0.446 and the Ministry of Finance's current August macroeconomic wage forecast (published 20 August 2026), the 2027 monthly minimum wage works out at CZK 24,900 — rounded up to whole hundreds of crowns under Section 111 of the Labour Code. Compared with 2026 (CZK 22,400) that is an increase of CZK 2,500, roughly 11 % — the largest year-on-year jump since the valorisation mechanism was introduced. The tripartite agreement is not yet a formal legal act: it still needs to be confirmed by a government regulation (as with the 2025–2026 coefficients in Regulation No. 285/2024 Coll.), after which the ministry will announce the exact amount in a notice in the Collection of Laws, by 30 September 2026 at the latest. Since both the coefficient and the August wage forecast are already fixed, CZK 24,900 is effectively certain — the formal announcement will simply confirm it. The ministry will publish the recalculated hourly rate together with the monthly amount (for 2026 it is CZK 134.40 for a 40-hour week). The exact 2028 amount cannot be calculated yet — it will depend on the 2028 average-wage forecast, which the Ministry of Finance will publish in the next cycle.

Together with the valorisation mechanism, the lowest levels of the guaranteed wage were abolished from 1 January 2025 for employees remunerated by wage (the private sector). The guaranteed salary with its work groups remains only in the public sector (employees remunerated by salary). For private employers the only binding minimum is therefore a single figure — the minimum wage.

The minimum wage is not just the floor for pay. A number of other amounts are derived from it and will rise along with it from January 2027 (figures below are recalculated for the agreed CZK 24,900 — the MPSV notice will formally confirm them): - the minimum health-insurance assessment base of an employee equals the minimum wage; the minimum monthly premium therefore rises to 13.5 % of CZK 24,900 = CZK 3,362 (2026: CZK 3,024; the employer tops up to the minimum), - the child-placement tax relief — the maximum annual amount per child rises to CZK 24,900 (2026: CZK 22,400), - the tax exemption of regularly paid pensions up to 36 times the minimum wage per year rises to CZK 896,400 (2026: CZK 806,400), - entitlement to the tax bonus — an annual income of at least 6 times the minimum wage rises to CZK 149,400 (2026: CZK 134,400); for the monthly bonus, half the minimum wage rises to CZK 12,450 (2026: CZK 11,200), - the surcharge for work in a difficult working environment — at least 10 % of the basic hourly minimum-wage rate; the ministry will publish the exact 2027 amount together with the hourly rate (2026: at least CZK 13.44/h).

- Prepare your 2027 payroll-cost budget around the agreed CZK 24,900 (an increase of CZK 2,500) — the formal announcement will simply confirm it. - Check employees at the lower pay boundary: from January 2027 their wage will have to be topped up to at least CZK 24,900 (including the impact on the health-insurance top-up to the minimum). - Keep the linked figures in mind — the tax bonus, child-placement relief, pension exemption and the minimum health-insurance assessment base (see the recalculation above). - Watch for the formal government regulation and the follow-up MPSV notice in the Collection of Laws (by 30 September 2026 at the latest) — it will also confirm the exact hourly rate. Sources: MPSV — Minimum wage, MPSV — the ministry proposes coefficients for further minimum-wage growth in 2027 and 2028 and ČT24 — the tripartite council agreed to the minimum-wage increase; further Section 111 of the Labour Code (Act No. 262/2006 Coll. as amended by Act No. 230/2024 Coll.), Government Regulation No. 285/2024 Coll. (coefficients for 2025–2026) and MPSV notice No. 356/2025 Coll. The government regulation with the 2027–2028 coefficients and the follow-up MPSV notice with the exact amount will be published in the Collection of Laws by 30 September 2026 at the latest — we will add the regulation number once issued. Need help preparing your payroll agenda for 2027? We are happy to help.