Simply put, the minimum wage is a certain basic amount that every worker should be able to reach. But its meaning is much broader. The concept cuts across different areas of law and can apply to almost anyone. How is it determined and what is the difference between the minimum wage and the guaranteed wage?
Even the simplest and most monotonous work must be paid at least the minimum level set by the government to which any full-time worker is entitled. The minimum wage in 2025 has been set by the government at CZK 20,800 per month, a further increase on previous years. This corresponds to a minimum hourly wage of CZK 124.40 for a fixed working week of 40 hours. The minimum hourly wage is particularly important for employees working part-time or on agreements. It is a basic amount that does not include various additional payments for overtime, public holidays or weekend work. However, it is not the amount that the employee will actually see on his/her pay slip. It is the gross salary, less social security and health insurance contributions. The “net” amount depends on how many children the employee has and his/her living situation.
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The minimum wage is set as the equivalent of a 40-hour week. The minimum hourly wage in the Czech Republic refers to a standard 40-hour week and is the basis for calculating wages for part-time work. So if you work part-time and your gross salary is CZK 14,500, then you should not argue with the minimum wage when asking your boss for a raise. However, if you are on the same wage at full-time, then your employer must give you a top-up to the minimum wage.
On the other hand, of course, you should receive at least half of the minimum wage at half-time.
Tip: We have covered the legal obligations regarding remuneration and benefits in a separate article.
The minimum wage setting has several different functions. In relation to employees, this is firstly a motivational function, where the wage should be set in such a way as to provide a greater incentive to work and not rely solely on social benefits.
We can also talk about a social protection function. The minimum wage should ensure that the employee can provide for the basic necessities of life (albeit very modestly) and be protected from falling to the social bottom.
In some cases, it is the hourly minimum wage that is more important than the monthly amount, for example in the case of work-for-hire agreements or seasonal work.
Tip: The Nobel Prize in Economics was recently awarded to David Card. His research looked at the relationship between minimum wage and work. Among other things, he concluded that raising the minimum wage does not necessarily lead to fewer jobs.
With the increase in the minimum wage in 2025, the thresholds for earnings in non-colluding employment and other related amounts in the legal system are changing. However, the amount of the CR minimum wage cuts across our entire legal system and is also linked to other amounts, benefits or tax write-offs.
In order to qualify for the child tax credit, it is still necessary to earn at least six times the minimum wage in a year. In 2025, this means a threshold of CZK 124 800 (6 × CZK 20 800).
The minimum wage also affects the potential earnings of persons registered with the Labour Office in so-called non-colluding employment. Their monthly earnings cannot exceed half of the minimum wage. In 2025, the maximum is CZK 10 400.
With the increase in the minimum wage, the limit up to which pensions are legally exempt from taxation is also rising. In order to be exempt, pensions must not total more than 36 times the minimum wage in a year. This applies to the vast majority of pensions in the Czech Republic.
Tip: How to determine the correct wage, what are the legal obligations regarding remuneration and what you are entitled to as an employee are topics we have discussed in a separate article.
It is necessary to distinguish from the minimum wage the so-called guaranteed salary, which applies only in the public sector (employees of the state, municipalities and contributory organisations) from 2025. In the private sector, the obligation to pay the guaranteed wage has been abolished – employers only have to comply with the minimum wage or a higher wage agreed in an employment contract or collective agreement.
As of 1 January 2025, the guaranteed salary in the public sector is divided into four groups according to the complexity, responsibility and exertion of the work. It is set as a multiple of the minimum wage:
group – CZK 20 800 (1× the minimum wage)
group – CZK 24 960 (1.2 times the minimum wage)
group – CZK 29 120 (1.4 times the minimum wage)
group – CZK 33 280 (1.6 × minimum wage)
This system is simpler than the previous eight-tier table. The nature and difficulty of the work performed is decisive for the specific classification of employees into groups according to the government regulation.
The individual grades differ according to the difficulty of the work performed. This year, scientists or securities traders should be guaranteed at least CZK 37 800 per month or CZK 225 per hour.
| Skupina | Zaručená mzda 2025 – výše |
|---|---|
| 1. skupina | 20 800 Kč |
| 2. skupina | 24 960 Kč |
| 3. skupina | 29 120 Kč |
| 4. skupina | 33 280 Kč |
If the basic amount of wages or salary does not reach the relevant minimum level of guaranteed wages, the employer is also obliged to provide the employee with an additional payment.
The characteristics of the individual groups and the typology of employment falling under them are also laid down in a government regulation. Employees receiving a salary are further divided into 16 grades.
When statistics refer to the level or trend of wages over a certain period, they often use the terms ‘average wage‘ and ‘median‘. Sometimes the two terms are used interchangeably, but they are not the same.
Wage policy in the Czech Republic is not limited to the minimum wage. The average wage in the Czech Republic is published regularly by the Czech Statistical Office to show wage developments. According to the latest data from the Czech Statistical Office, the average gross monthly wage in Q2 2024 was CZK 38 275. Further growth is expected for 2025, with the highest wages traditionally achieved in the capital city of Prague. The exact figures for 2025 will be published gradually during the year by the Czech Statistical Office.
The average gross monthly wage is calculated on the basis of wages, which also include various additional or supplementary salary payments, remuneration for weekend work, etc. However, they do not include, for example, wage or salary replacements during the period of incapacity for work.
To know the average wage in a certain area (enterprise, region), it is sufficient to know only the wage costs for a given period and the number of employees. For example, if the monthly costs in a small company with 7 employees are CZK 350 000, then the average wage here will be CZK 50 000.
We have covered all private sector bonuses in more detail in our article.
In addition to the average wage, the median wage is often mentioned as a more realistic picture of the income of ordinary employees. For example, the median wage in Prague in 2024 was CZK 39,233. The median is generally less distorted by the extremely high incomes of some employees, which can affect the average statistic. In contrast, the median is a statistical concept that represents a mean value. In the case of wages, however, we need more data to determine it than to determine the average wage.
What pay settings are worthwhile and what types of pay are there? Find out in the next article.
If we imagine that in the above mentioned company the salary of the director is CZK 100,000 and the salary of his closest advisor is CZK 80,000, then it is obvious that the salary of these two persons alone accounts for more than half of all salary costs. The salaries of the other colleagues must therefore be significantly lower than the average salary quoted above. For this purpose, it is preferable to work with the median, where all the values (wages) in a given company are ranked and the median is found. If the wages in this example were CZK 100 000, CZK 80 000, CZK 60 000, CZK 35 000, CZK 30 000, CZK 25 000 and CZK 20 000, then the median would be the wage of CZK 35 000.
While the average wage may be distorted by the extremely high salaries of some managers, which raise the average wage of all employees, the median is more indicative of real wage ratios.
The minimum wage in the Czech Republic in 2025 is CZK 20 800 per month at full-time (40 hours per week), which corresponds to a minimum hourly wage of CZK 124.40. This is still a gross amount, which does not include additional payments for overtime, public holidays or weekend work. In the case of part-time work, the minimum wage is reduced in proportion to the time worked. The minimum wage has not only an incentive but also a social protection function and serves as a basic parameter for a number of other legal areas – for example, for calculating the tax bonus, the earnings limit in non-colluding employment or for determining certain tax exemptions. In addition, from 2025, the system of the so-called guaranteed salary is also changing: in the private sector, this obligation has been abolished, while in the public sector there are four levels of guaranteed salary, graded according to the intensity of the work.
The minimum wage in 2025 is CZK 20 800 per month for full-time work (40 hours per week). This is a gross amount, which is further reduced by social and health insurance and income tax. The amount of the minimum wage affects not only employees’ wages, but also other legal areas – for example, the maximum earnings in non-collective employment or eligibility for a tax bonus.
The minimum hourly wage is calculated according to the monthly minimum wage and the fixed weekly working hours. In 2025, it is CZK 124.40 per hour for a 40-hour week. If the employee has shorter working hours (e.g. 37.5 hours per week), the hourly rate increases proportionally.
The minimum wage is the lowest amount an employee in the Czech Republic must receive for a full-time job. From 2025, only the minimum wage is applied in the private sector. The guaranteed salary remains only for employees in the public sector (e.g. in the state administration or in contributory organisations) and is divided into four groups according to the intensity of the work.
According to the latest available data, the average wage in Prague in Q2 2024 was CZK 46 163. Prague has long been one of the regions with the highest wages in the Czech Republic. A further increase is expected in 2025, but the Czech Statistical Office will publish the exact figures gradually during the year.
No, the employer may not pay the employee less than the current minimum wage or the equivalent part for part-time employees. If the employee’s wage does not reach the legal minimum, the employer must provide the additional payment. There are no exceptions – the minimum wage is legally binding for all employees in the Czech Republic.
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