The minimum wage for 2021 is set at CZK 15,200 – i.e., CZK 600 more than the year before. The minimum hourly wage will rise to CZK 90.50.
The increase of the minimum wage goes hand in hand with the lowest level of what is known as the guaranteed wage (which represents the lowest wage stipulated with a view to the complexity, arduousness, and professional demands posed by the given job, as per a roster of categories).
The amount of the minimum wage also has impact e.g. on:
– Eligibility of a tax break for enrolling one’s child in a daycare facility
– Raising the threshold of annual earnings which determines whether the taxpayer is entitled to a tax bonus
– Raising the monthly health insurance contribution for people without taxable income, and increasing the monthly minimum payment toward health insurance coverage.