Change in the minimum wage for 2023 and its consequences
From January 1, 2023, the minimum wage is increasing to 17,300 CZK. With a weekly working hours of 40 hours, this corresponds to 103.80 CZK per hour.
For employees working in shift operations or where the weekly working hours are regulated, for example, by a collective agreement according to §79 of the Labor Code, the hourly minimum wage is recalculated based on their reduced working hours. Thanks to this calculation, the monthly minimum wage remains the same whether an employee works 40, 38.75, or 37.5 hours per week.
How to calculate the minimum hourly wage for reduced working hours?
MM(37.5) = 103.80 * (40 : 37.5)
MM(37.5) = 103.80 * 1.0667
MM(37.5) = 110.72 rounded to the nearest tenth 110.70 CZK.
What will the change in the minimum wage affect?
- increase in the maximum amount of tax relief for placing a child in a preschool facility
- increase in the exemption limit for pensioners to 36 times the minimum wage
- increase in the threshold for monthly tax bonus payment from 7,600 CZK to 8,100 CZK
- increase in the threshold for annual tax bonus payment from 91,200 CZK to 97,200 CZK
- increase in the minimum assessment base for health insurance (minimum contribution for employees and individuals without income is 2,187 CZK)
- increase in wage supplements for working in a challenging work environment to 10% of the minimum wage
- non-conflicting employment for individuals registered at the labor office (maximum 8,100 CZK)
Changes in occupational health care
From January 1, 2023, it is no longer mandatory for employers to send their employees for regular periodic medical examinations if these employees are classified in the first category, i.e., a category where a negative impact on health is not likely.
However, if an employer decides to continue sending their employees in the lowest category for medical examinations, it will be voluntary, not mandatory.
Periodic occupational health examinations will still be mandatory for professions classified in the second category with risk, third and fourth categories, or where there are present risk factors.
Sending employees for initial medical examinations remains mandatory for all categories of employees.
