From 1 January 2021, the minimum wage in the Czech Republic will increase by CZK 600 to CZK 15,200 per month. This applies to employees with a weekly standard working time of 40 hours. The minimum hourly wage will increase from CZK 87.30 to CZK 90.50.
The average monthly wage will increase from CZK 34,835 to CZK 35,441 in 2021.
| 2020 | 2021 | |
| Minimum wage | 14,600.00 | 15,200.00 |
| Average wage | 34,835.00 | 35,441.00 |
The increase in the minimum wage will affect the lowest levels of the guaranteed wage. The lowest guaranteed wage will range from CZK 15,200 to CZK 30,400 per month, or from CZK 90.50 to CZK 181.00 per hour in 2021 depending on the work group.
Lowest levels of guaranteed wage 2021 (in CZK)
The following table shows the guaranteed wages for 2021 according to the length of the weekly standard working time of 40 hours / 37.75 hours / 38.5 hours.
| Work group | Guaranteed wage per HOUR | Guaranteed wage per HOUR | ||
| 40 hours per week | 38.75 hours per week | 37.5 hours per week | ||
| 1 | 15,200.00 | 90.50 | 93.42 | 96.53 |
| 2 | 16,800.00 | 99.90 | 103.12 | 106.56 |
| 3 | 18,500.00 | 110.30 | 113.86 | 117.65 |
| 4 | 20,500.00 | 121.80 | 125.73 | 129.92 |
| 5 | 22,600.00 | 134.40 | 138.74 | 143.36 |
| 6 | 24,900.00 | 148.40 | 153.19 | 158.29 |
| 7 | 27,500.00 | 163.90 | 169.19 | 174.83 |
| 8 | 30,400.00 | 181.00 | 186.84 | 193.07 |
Other effects of the increase in the minimum and average wage
Minimum wage
- The maximum amount of the possible tax allowancefor placing a child in a pre-school facility (nursery-fees) will increase to CZK 15,200 (for 2021).
- The limit of the taxpayer’s annual income to receive tax bonuses, that are paid to taxpayers if their child tax allowance for the year exceeds their tax liability, has been abolished as of 2021.
- The limit for the exemption of regularly paid pensions will be increased to CZK 547,200 / year (36 times the minimum wage), i.e. CZK 45,600 / month.
- The health insurance, which must be deducted from the minimum wage, e.g. by the tax-exempted persons, will increase to CZK 2,052 / month (13.5% of the minimum wage).
Average wage
- The limit for the solidarity tax increase / second tax rate is increased – for income from dependent activities, the monthly limit is increased by CZK 141,764 (4 times the average wage), and the annual limit is CZK 1,701,168 (48 times the average wage).
- The maximum assessment base for social security premiums is increased by CZK 1,701,168 (48 times the average wage).
If you have any questions, please do not hesitate to contact us. We will be happy to assist you!
Andrea Drhová
Senior Associate | Czech Republic
Tel: +420 222 753 480
E-mail: andrea.drhova@accace.com
Kateřina Hrůzová
Tax Manager | Czech Republic
Tel: +420 222 753 480
E-mail: katerina.hruzova@accace.com
