From 1 January 2025, the minimum wage in the Czech Republic will increase by CZK 1,900 to CZK 20,800 per month. This applies to employees with a weekly standard working time of 40 hours. The minimum hourly wage will increase from CZK 112.50 to CZK 124.40.

The average monthly wage will increase from CZK 43,967 to CZK 46,557 in 2025.

Lowest levels of guaranteed wage 2025 (in CZK)

The increase in the minimum wage will affect the lowest levels of the guaranteed wage. The guaranteed wage represents minimum earnings determined by the state for individual professions, which were classified into 8 groups until the end of 2024. From 2025, guaranteed wages in the commercial sector will be abolished. Only guaranteed wages in the state sector remain in force, which will be newly divided into 4 groups. Inclusion in the group is determined by the level of education achieved.

• 1^st group – basic education
• 2^nd group – secondary education with teaching certificate
• 3^rd group – secondary education
• 4^th group – higher education

The following table shows the guaranteed wages for 2025 according to the length of the weekly standard working time of 40 hours / 37.75 hours / 38.5 hours.

Other effects of the increase in the minimum and average wage

Minimum wage

• The limit for the exemption of regularly paid pensions will be increased to CZK 748,800 / year (36 times the minimum wage), i.e. CZK 62,400/ month.
• The health insurance, which must be deducted from the minimum wage, e.g. persons without taxable income, will increase to CZK 2,808 / month (13.5% of the minimum wage).
• The income limit for entitlement to a tax bonus will be increased to CZK 124,800 / year (6 times the minimum wage), i.e. CZK 10,400 / month.

Average wage

• The limit for the application of the second tax rate will increase – the monthly limit is increased by CZK 139,671 (3 times the average wage), and the annual limit is CZK 1,676,052 (36 times the average wage).
• The maximum assessment base for social security premiums will increase on CZK 2,234,736 (48 times the average wage).
• The threshold for tax exemption of non-monetary benefits provided by the employer will be increased to CZK 23,278 / year (1/2 of the average wage). If the amendment to the Employment Act is approved, a new limit specifically for health-related benefits will apply, up to the average wage i.e. CZK 46,557 / year.
• Limit for the participation in sickness insurance when employed on the agreement to complete a job (Czech: DPP) will increase ton reaching an income of CZK 11,500 (25% of the average wage).
• The minimum advances to social security for self-employed persons will be increased to CZK 3,399 (29.2% of ¼ of the average wage) for starting entrepreneurs, and CZK 4,759 for other entrepreneurs (29.2% of 35% of the average wage).
• The minimum advances to health insurance for self-employed persons will be increased to CZK 3,143 (13.5% of ½ of the average wage).
• The flat-rate tax for self-employed persons in the first band will increase to CZK 8,716.

If you’d like to to learn more about the taxes in the Czech Republic and calculate your indicative net salary, take a look at our 2024 payroll calculator for the Czech Republic.

Evolution of minimum wage in the Czech Republic during the past years

If you have any questions, please do not hesitate to contact us. We will be happy to assist you!

Lan Anh Mai

Senior Tax Consultant | Accace Czech Republic

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Kateřina Hrůzová

Tax Director | Accace Czech Republic

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