Minimum wage to be increased

The Czech Government has approved a rise in the minimum wage from the current CZK 8,000 to CZK 8,500 with effect from 1 August 2013. The last time the minimum wage was increased was in 2007. One of the first changes brought by the newly-installed government is an increase in the minimum wage to CZK 8,500. From the beginning, the wage adjustment has been one of the priorities of Prime Minister Rusnok’s team and was also supported in the past by President Miloš Zeman. For companies that employ individuals at minimum wage, the adjustment will mean increased personnel expenses. The wage increase will also cause a rise in the minimum payments for work at weekends, on public holidays and at night. The minimum hourly wage will also rise in connection with the increase in monthly wages. In addition, the obligation to comply with the minimum hourly wage will apply to agreements for work (in Czech: dohoda o pracovní činnosti). Should you have any questions in this respect, please do not hesitate to contact our payroll specialists.