Czech Government Announces 7.7% Increase in Statutory Monthly Minimum Wage from January 2026

The Czech Ministry of Labour and Social Affairs announced on August 29 that the monthly minimum wage will be increased by 1,600 koruna (7.7%) from the current level to 22,400 koruna (approximately 159,040 yen) effective January 1, 2026. This corresponds to 43.4% of the average wage forecast of 51,497 koruna for 2026 announced by the Ministry of Finance. Since 2025, the country has introduced a new system that sets minimum wage as a certain percentage of the average wage forecast. The ratio of minimum wage to average wage is being gradually increased from the 2024 actual of 41.2% to approximately 42.2% in 2025 and approximately 43.4% in 2026, with the government targeting achievement of 47% by 2029. According to Eurostat, as of July, Czech Republic's minimum wage ranks 6th lowest among 22 EU countries, and the ratio of minimum wage to average wage ranks 13th among 15 EU countries. Improving workers' living standards and correcting economic disparities have become important policy issues. This systematic minimum wage increase is expected to strengthen the competitiveness of the Czech labor market and stabilize the social security system.