New minimum wage to take effect Jan. 1

IMPACT – MEDIUM

What is the change? The Czech Republic’s monthly minimum wage will increase Jan. 1 from 14,600 Czech Korunas to 15,200.

What does the change mean? The minimum wage is relevant to all workers in the Czech Republic, including employee card holders, whose wages must not be lower than the minimum wage.

• Implementation time frame: Jan. 1, 2021.
• Who is affected: Czech companies, including those employing foreign nationals.
• Business impact: Businesses may see a slight increase in labor costs because of the new minimum wage.
• Additional Information: The change does not affect the EU Blue Card salary threshold, which will remain at 51,188 Czech korunas per month until May 1.

Analysis & Comments: The 2021 monthly minimum wage of 15,200 Czech Korunas represents a 4-percent increase over last year’s level. Employers should take the new wage minimums into account when planning their 2021 budgets.

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