Key Points
- Minimum wages will increase in the Czech Republic on January 1, 2021
- Minimum wages will increase by 4.1% for Work Permit and Employee Card holders
- The minimum wage in both categories will be CZK 15,200 per month
- Long-term visa holders must meet minimum monthly subsistence requirements
- New wages apply to current employees, new and renewal applications, and pending applications
- Allowances and benefits are generally excluded from minimum wage calculations
Overview
The Czech Republic has announced a nationwide minimum wage increase on January 1, 2021. Wages will increase by 4.1% for Work Permit and Employee Card holders.
Who is Affected?
The changes apply to Work Permit and Employee Card holders across the country. Minimum salaries in both categories will increase by 4.1% to CZK 15,200 per month. Previously, both minimum salary levels were CZK 14,600 per month.
Long-term visa applicants must meet the requirements for minimum subsistence levels in their visa categories for their stay in the Czech Republic. Long-term visa holders must have 15 times the minimum salary level for the first month that they are in the Czech Republic. They must have two times the minimum subsistence requirement for each month of consecutive stay after that. Applicants under the age of 18 only need to have half the required subsistence amount. Business visa applicants must have 50 times the required minimum subsistence amount for the one-year validity period of their visa. Currently, the minimum subsistence required for long-term business visa applicants is CZK 124,500.
Regardless of category, individuals must have the full required minimum subsistence amount in their bank account when they apply.
What Should Employers and Applicants Know?
The new minimum wages apply to existing employees, new and renewal applications, and pending applications. Allowance and benefits are usually not permitted in minimum wage calculations.
