Changes to wage rates, limits, and decisive amounts from 2026

Minimum wage

The government approved a regulation on the coefficient for calculating the minimum wage in 2025 and 2026, which sets one of the key parameters of the minimum wage indexation mechanism. The regulation was issued on the basis of the mandate of the Labour Code, which sets out the minimum wage indexation mechanism and the government's obligations in the process of updating the minimum wage. The Regulation does not set the actual amount of the minimum wage, but determines the coefficients for its subsequent calculation. Similarly, the lowest levels of the guaranteed wage will be announced.

The Ministry of Labour and Social Affairs announced in Communication No. 356/2025 Coll. the basic rate of the minimum wage, which is CZK 22 400 per month as of 1 January 2026 (in 2025 the minimum wage was CZK 20 800). The hourly rate of the minimum wage increases from CZK 124.50 to CZK 134.40 for a fixed weekly working time of 40 hours. Furthermore, this communication adjusts the range of the amount of the supplement for work in difficult working environments, i.e. CZK 1 120 to CZK 3 360 per month.

With effect from 1 January 2025, the guaranteed wage in the private sector is also abolished; the guaranteed wage groups remain in force only for the state and public sphere. Only 4 groups of guaranteed wage are now designated. For private sector employers, the only threshold for determining the minimum wage – the minimum wage.

Increased pensions

Government Decree No.365/2025 Coll. changes the basic rate of old-age, disability, widow's, widower's and orphan's pensions – for 2026 it is CZK 4 900. The basic amount of the pension was thus increased by CZK 240 per month compared to 2025 for all pensions awarded before 1 January 2026, and the percentage rate was increased by 2.6%.

Pensioners who reach the age of 85 in 2026 will receive an additional CZK 1 000, and those who reach the age of 100 will receive an additional CZK 2 000.

In 2026, the childcare allowance will be CZK 500 for each child raised.

Sickness insurance 

Reduction limits 

The Ministry of Labour and Social Affairs (MLSA) in Announcement No. 397/2025 Coll. from 8 October 2025 increases the reduction limits for the adjustment of the daily assessment base (DAB) valid from 1 January 2026 for the calculation of the amount of sickness insurance benefits. The new reduction limits are as follows:

The income decisive for the participation in sickness insurance for small-scale employment or agreements on work activity remains the same as in 2025, i.e. CZK 4 500. 

Agreements for the performance of work 

Announcement of the Ministry of Labor and Social Affairs No. 396/2025 Coll., announcing the decisive amount for the participation of employees working based on an agreement for the performance work in sickness insurance, sets a new amount for this decisive amount.

From January 1, 2026, the decisive amount for the participation of employees working under an agreement for the performance work increased to CZK 12 000. 

Social insurance

Maximum assessment base

The maximum assessment base for the payment of premiums for social security in 2026 amounts to CZK 2 350 416. Its amount is specified as 48 times the average wage that, for the purposes of the premium for the year 2026, amounts to CZK 48 967 (48 967 x 48 = CZK 2 350 416).  

Discount on social insurance premiums - old-age pensioners 

In 2026, the discount on social insurance premiums for "working pensioners" will continue to apply at a rate of 6.5% of the employee's assessment base per calendar month.

However, the premium discount applies only to pensioners who meet all of the following conditions:

• have reached retirement age,
• are recipients of an old-age pension
• are entitled to an old-age pension in the full amount under the Pension Insurance Act.

At the same time, the possibility of increasing the old-age pension for gainful employment concurrently with its receipt will be abolished.  

Health insurance 

The minimum assessment base for the payment of health insurance in 2026 amounts to CZK 22 400 per month, the minimum amount of the monthly premium amounts to CZK 3 024 (CZK 22 400 x 13.5% = CZK 3 024). 

The minimum amount of the premium for health insurance for a self-employed person amounts to CZK 3 306.  

Taxes 

Taxpayer's allowance and the child tax benefit 

Both the taxpayer's allowance and the child tax benefit remain unchanged in 2026.

Amount of the limit for the 23% advance payment of the income tax for natural persons income taxes 

From 2024, the limit of income from which the employee pays a 23% tax is changing from 4 times the average wage to 3 times the average wage. In 2026, a 23% income tax on income over CZK 146 901 will be paid (in 2025 the limit was CZK 139 671). 

Non-monetary employee benefits (Section 6(9)(d) of Act No. 586/1992 Coll., Income Tax Act) 

From 1 January 2026, the limits for tax exemption non-monetary employee benefits are changing: 

1. Health benefits

• The tax exemption up to the average wage for the tax period.
• For 2026, this limit is set at CZK 48 967.

2. Leisure benefits – all remaining benefits listed in Section 6(9)(d) of the Income Tax Act

• The tax exemption up to half of the average wage for the tax period.
• For 2026, this limit is set at CZK 24 483.50.  

Increased limit for exemption of pensions from taxation 

Regularly paid pensions are exempt from income tax if the annual amount does not exceed 36 times the minimum wage. In 2025, the limit was CZK 748 800; for 2026, the limit is CZK 806 400.  

Travel allowances – meals 

The basic rules for providing compensation for travel expenses remains unchanged. Employees in an employment relationship continue to be entitled to compensation, as are (under certain conditions) employees performing activities according to agreements to perform work or fixed work agreements, or executives and members of statutory bodies. 

Domestic meals allowances, compensation for car 

The rates of the domestic meal allowance, the rates of basic compensation per 1 km of travel and the price of fuel pursuant to Section 158(3) of the Labour Code are set for 2026 by Decree No.573/2025 Coll. of the Ministry of Labour and Social Affairs. 

Domestic meal allowance for the year 2026:

• 5 to 12 hours – CZK 155 to 185  
• 12 to 18 hours – CZK 236 to 284
• more than 18 hours – CZK 370 to 442  

The amount of meal allowance in 2026 also affects the meals of employees – the maximum amount of the monetary meal contribution (monetary contribution for meals) that is tax deductible for employees amounts to CZK 129.50 per shift (70% of the upper limit of the meal allowance for the time zone 5-12 hours). 

Basic compensation for 1km of travel 

The basic compensation rate for 1 km of travel for a personal vehicle in 2026 amounts to CZK 5.90 per km. 

Prices of fuel for 2026 pursuant to the third clause of Section 158(3) of the Labour Code:

• petrol 95 octane – CZK 34.70 per l
• petrol 98 octane – CZK 39 per l
• diesel fuel – CZK 34.10 per l
• 1 kilowatt hour of electricity – CZK 7.20 

Foreign meal allowance

The MLSA sets the basic rate for the foreign meal allowance in a foreign currency, which in 2026 amounts to: 

• 40 € for Slovakia
• 45 € for Austria, Bulgaria, Romania
• 50 € for France, Hungary, Germany, Poland
• 55 € for Italy 

A complete overview of the foreign meal allowance for 2026 is provided in the appendix to Decree No. 489/2025 Coll. of 20 November 2025. 

Lump sum for the reimbursement of costs for remote work 

The amount of the lump sum for the reimbursement of costs for remote work is specified by Decree of the Ministry of Labour and Social Affairs No. 572/2025 Coll. of 18 December 2025.

As of 1 January 2026, the flat rate of reimbursement costs for remote work is CZK 4.70 for each hour of work, in whole or in part, outside the employer's workplace. 

Wage deductions 

From January 1, 2026, the method of calculating the basic amount that cannot be deducted from the monthly salary of the obligated person when enforcing a decision will change.

Government Regulation No. 548/2025 Coll. of 10 December 2025 stipulates that the unseizable amount will now be calculated based on the minimum standard of living for an individual, normative rent, and a flat rate for energy. Due to the abolition of normative costs in connection with the new super-allowance, the values used to calculate this super-allowance will be used as a basis. The unseizable amount for the debtor will be 85% of the sum of these three components.

According to this calculation, in 2026, the unseizable amount for a natural person will be CZK 14 101.50, with each dependent receiving a quarter of this amount. At the same time, the limit for unlimited wage deductions will be increased to 1.9 times the above amount. 

Calculation parameters from 1 January 2026

New calculation bases for enforcement deductions from wages and similar income: 

1. The living minimum of an individual: CZK 4 860.

2. Normative rent: CZK 9 430.

3. Flat rate for energy (single-person household): CZK 2 300.

4. The amount of the unseizable amount: CZK 14 101.50 (85% of the sum of the living minimum, normative rent, and flat rate for energy).

5. The basic unseizable amount for a dependent person: CZK 3 525.37 (i.e., 1/4 of the amount of CZK 14 101.50).

6. The amount above which the rest of the net wage will be deducted without limitation: CZK 31 521 (i.e., 1.9 times the sum of the living minimum, normative rent, and flat rate for energy).

Attention! The new non-deductible amounts are to be applied already in the calculation of wages for the period 12/2025. 

Mandatory employer contribution to retirement savings products for the 3rd risk category 

We would like to remind you once again of the employer's obligation to contribute to retirement savings products for employees who perform work classified in the 3rd risk category. These are:

• supplementary pension insurance with a state contribution,
• supplementary pension savings. 

The amount of the mandatory contribution is 4% of the assessment base for social insurance, provided that the employee works at least 3 shifts of risky work in a given calendar month. 

The employer is obliged to inform its employees in writing about their right to a mandatory contribution and how to apply for it:

1. by January 15, 2026 (according to the transitional provision of Act No. 324/2025 Coll.)

2. before the employee begins performing the risky work. 

The employer’s obligation to pay the mandatory contribution arises only on the basis of the employee’s notification to the employer that they are exercising their right to this contribution.

Author: Martina Farářová