Minimum Wage in Czech Republic – Frequently Asked Questions

Is there a separate legislation relating to minimum wages in Czech Republic?

The minimum wage in Czech Republic is regulated by the Labour Code No. 262/2006 (§111) and Regulation No. 567/2006 establishing the level of minimum wage.

Do one or more minimum wages exist that is/are determined by law?

More than one minimum wage exist in Czech Republic.

At what level are minimum wages determined at?

The levels of minimum wages are stipulated in national legislation. There is one national statutory minimum wage. There are 8 job groups established in the legislation, depending on the complexity, difficulty of the job tasks and the responsibility held by an employee. Every job group has assigned corresponding minimum wage.

On what basis is minimum wage calculated?

Minimum Wage is calculated on either hourly or monthly basis.

In case of weekly/monthly minimum age, are they based on any fixed number of hours?

Employees are entitled to monthly minimum wage if their agreed working time is 40 hours per week.

Are governmental bodies, employer and/or trade union representatives involved in minimum wages setting?

Representatives from various ministries, Representatives from the Confederation of Industry and Confederation of Employers and Business Associations and Representatives from the Czech- Moravian Confederation of Trade Unions a from the Association of Independent Trade Unions are involved in minimum wage setting.

How are upratings (adjustments) of minimum wage/s decided upon?

Upratings of minimum wages are decided after consultation of employer and trade unions representatives.

Which are the components of minimum wage in Czech Republic?

There is only fixed component of minimum wage.

How frequently is the fixed component of minimum wage updated?

Fixed component of minimum wages is updated at no specific interval.

What is/are the yardstick/s on which minimum wage upratings are based?

Minimum Wage upratings are based on wage indexation & consumer price indexation.

What is National Poverty line?

Click here to know the national poverty line in context with Minimum Wage, living wages and actual wages. Select the currency (Euro or national currency) to know national poverty line.

How is minimum wages compliance regulated?

Inspections could be performed by the National Office for Labour Inspection and its local offices.

Which legal sanctions can be applied if compliance is lacking?

In case of lack of compliance fines are imposed.

Are sanctions often being applied?

Sanctions are applied often contingent on the disclosure of the labour law violation.

Are employer and/or trade union representatives involved in compliance procedures?

Employers and trade union representatives are not involved in compliance procedures.

To whom/Where can individuals complain, if they think they are earning less than minimum wage?

An employee may contact a local Office for Labour Inspection and may approach trade unions; they would report the case to the Office for Labour Inspection on her behalf. Trade unions themselves are not entitled to lead an inspection.

Which month of the year is minimum wage rate revised in Czech Republic?

The minimum wage is usually revised in January or July.