Payroll Accounting 2026: New Minimum Wage and Contribution Changes

The year 2026 brings another wave of legislative changes in payroll accounting. Employers must react quickly to ensure full compliance with the new rules.

From January 1, 2026, the minimum wage increases to CZK 22,400 per month (CZK 134.40/hour), representing an increase of CZK 1,600 compared to 2025. This change affects not only the lowest earnings but also a number of related parameters. The legal basis is MPSV Communication No. 356/2025 Coll..

Since 2024 (consolidation package), the concept of guaranteed wage in the private sector has been abolished. Guaranteed pay now applies only to public sector employees remunerated by salary. Private sector employers must only comply with the minimum wage.

The average wage for 2026 is CZK 48,967 (general assessment base CZK 46,278 × conversion coefficient 1.0581). The maximum assessment base for social insurance in 2026 is CZK 2,350,416 annually (48 times the average wage). Rates remain: employee 7.1%, employer 24.8%. More at ČSSZ.

The minimum assessment base for self-employed increases to CZK 24,483.50 per month (50% of the average wage). Rates unchanged – 4.5% employee, 9% employer. Health insurance overview at VZP.

The basic taxpayer credit remains CZK 30,840 annually (CZK 2,570 monthly). The student credit was abolished from 2024 as part of the consolidation package.

In 2026, two personal income tax rates apply: 15% and 23%. The higher 23% rate applies to the portion of the tax base exceeding 36 times the average wage, i.e., above CZK 1,762,812 annually. Monthly, the 23% withholding applies to gross wages exceeding CZK 146,901. Details in the Income Tax Act.

The limit for tax-exempt meal allowance increases to CZK 129.50 per shift (70% of the upper limit of meal allowance for business trips of 5–12 hours, i.e., 70% of CZK 185).

1. Update payroll software by January 15, 2026 2. Check employment contracts and minimum wage compliance 3. Recalculate contributions for all employees 4. Inform employees about changes in payslips 5. Verify benefit program settings According to the amendment to Act No. 586/1992 Coll., employers are obliged to implement all changes no later than the January 2026 payroll.