Czech Republic approves minimum wage and public sector salary increases

The Czech government has approved significant wage increases for both minimum wage earners and public sector employees. Starting in January 2027, the minimum wage is set to rise by 2,500 CZK, moving from 22,400 CZK to 24,900 CZK gross per month. This increase is projected to represent approximately 44.6 percent of the average wage. Future increases are planned, with the minimum wage potentially reaching 26,900 CZK in 2028 and aiming for 47 percent of the average wage by 2029.

In the public and state sectors, which employ approximately 857,000 people, salaries for various roles—including educators, healthcare workers, police, and civil servants—are expected to grow by between 5 and 9 percent. This reform aims to ensure that no employee in the state service falls below the guaranteed minimum wage or the minimum wage threshold. The government's plan includes adjusting salary tables to prevent hundreds of thousands of employees from falling below these levels due to inflation.

While labor unions are pushing for the minimum wage to eventually reach 50 percent of the average wage to meet European Union recommendations, employers have expressed concerns regarding the financial burden these increases will impose.