In summary

In Czechia there is a statutory minimum wage of 4.69€ per hour, which makes a minimum wage of 787.37€ per month (-1.30% in real growth terms comparing to the previous year). The MW is set by Trade unions and employers (and by the government if trade unions and employers do not reach agreement). The criteria guiding the adjustments of MW is 47% of average gross wage by 2029. There are higher minimum rates depending on the complexity, responsibility and qualification requirements of the work performed (this is to be abolished under proposed Labour Code). The gender pay gap is 17.7%, while the in-work poverty rate is 15%. Finally, wage inequality (calculated as Interdecile ratio P90/P10) is 3.2.

Minimum Wage in Czechia

Statutory Minimum Wage ?

Yes
Does your country have a statutory minimum wage? (yes or no). For Statutory it is intended “set by law”.

Hourly Minimum Wage

4.95€
In countries where MW are expressed in monthly pay (or weekly - MT), the amount is converted into hourly rates based on the average collectively agreed number of working hours per month, as provided by Eurofound (2023), or most recent data available. For non-euro countries, the values were converted to Euro by applying the exchange rate applicable at the end of the previous reference month (December 2023). Rates for countries with more than 12 wage payments per year (Greece, Portugal, Slovenia and Spain) were converted by dividing the annual sum of the minimum wage by 12 calendar months.

Monthly Min. Wage

828.00€
In countries in which the minimum wage is not explicitly set per month, the calculation of the monthly minimum wage is based on the hourly rate multiplied with the average collectively agreed number of working hours per month (full time equivalent). Or most recent data available.

MW as % Gross Median Wage

42.00%
Under the Directive, Member States are required to use indicative reference values when assessing of the adequacy of statutory minimum wages: 60% of the gross median wage. The data is based on the OECD Earnings Database (2024); for Malta and for Bulgaria the data was taken from Eurostat (2024). For Bulgaria the most recent figure available at Eurostat was for 2018.

MW as % Gross Average Wage

39.00%
Under the Directive, Member States are required to use indicative reference values when assessing of the adequacy of statutory minimum wages: 50% of the gross average wage. The data is based on the OECD Earnings Database (2024); for Malta and for Bulgaria the data was taken from Eurostat (2024).

Nominal Growth rate of Wages

10.00%
Development from January 2023 to January 2024 based on national currencies.

Real Growth rate of wages

7.20%
Development from January 2023 to January 2024 based on national currencies. The calculation is based on the annual average of Eurostat's harmonized index of consumer prices.

Real Growth rate of wages

7.20%
Development from January 2023 to January 2024 based on national currencies. The calculation is based on the annual average of Eurostat's harmonized index of consumer prices.

% of workers covered by minimum wage

3.10%

Automatic indexation of adjustments

no
An indexation mechanism links the development of minimum wages to the development of other indicators such as inflation or negotiated wages.

MW setting procedure

Trade unions and employers; government if trade unions and employers do not reach agreement
This indicator refers to the mechanism used to set the minimum wage involving indexation, unilateral government decisions and different kinds of trilateral and bilateral negotiations with or without the involvement of expert commissions.

Criteria guiding adjustment of MW

Law of 1 August set the MW at 42.2% of average wage; for 2026 it will be 43.4% to reach 47% by 2029. In private sector guaranteed wage has been abolished, in public sector reduced from eight to four different groups.
The Directive specifies the following criteria for the adjustment of minimum wages: purchasing power of statutory minimum wages taking into consideration the cost of living, general level of wages and their distribution, growth rate of wages and long-term productivity levels and their developments.

Variations from statutory Minimum Wage

Higher minimum rates depending on the complexity, responsibility and qualification requirements of the work performed (this is to be abolished under proposed Labour Code)
Variations refer to the fact that Member States may allow for different rates of statutory minimum wages for specific groups of workers such as in particular young workers.

Presence of variations from statutory minimum wages

Higher minimum rates depending on the complexity, responsibility and qualification requirements of the work performed (this is to be abolished under proposed Labour Code)

Consultative body on statutory Minimum Wage and social partner involvement

MW is set through tripartite coordination in the Council of Economic and Social Agreements of the Czech Republic; if trade unions and employers cannot agree the government takes the decision unilaterally
The Directive requires Member States to involve the two sides of industry into the setting and updating of statutory minimum wages in a timely manner which involves the establishment of consultative bodies such as low-pay or minimum wage commissions or other tri- and bipartite structures whose advice can be but does not need to be binding.

Gender Pay Gap

18.00%
The unadjusted gender pay gap is calculated as the difference between the average gross hourly earnings of male and female paid employees as a percentage of average gross hourly earnings of male paid employees (latest data Eurostat, 2022).

In-work poverty rate

3.60%
In-work at-risk-of-poverty rate refers to the percentage of persons, who declared to be employed or self-employed, being at risk of poverty (i.e. with a disposable income below the threshold, set at 60 % of the national median disposable income after social transfers) (latest data Eurostat, 2023).

Wage inequality (inter-decile Ratio P90/P10)

3.20
The P90/P10 inter-decile ratio is the ratio of the upper bound value of the ninth decile (i.e. the 10% of people with highest wage level) to that of the first decile (i.e. the 10% of people with lowest wage level) (OECD Stat, 2022).

In summary

In Czechia, the collective bargaining coverage is 35%. Wages bargaining take place mostly at company level. Collective agreements are not valid  beyond their expiration. There is no national law dealing with collective bargaining clauses in public procurement. Trade unions have access to the workplace, and workers and trade union representatives have a protection against discrimination/dismissal. Employers federations are present (with a 55.5% density) with a negotiating mandate. The Directive has been partially tranposed with an amendment to the national labour code (Act No. 230/2024 Coll., amending Act No. 262/2006 Coll.) 

Collective Bargaining in Czechia

Collective Bargaining Coverage

35.00%
Collective Bargaining coverage is measured as the share of employees covered by a collective agreement (in percent) of the number of employees with the right to bargain (OECD/AIAS ICTWSS database, 2021 or most recent year available – for DE source is IAB 2024; for NL, source is De Burcht 2024; for ES source is Spanish Ministry for Labour and Social Economy 2024).

Predominant level at which wage bargaining takes place (in terms of coverage of employees)

Company
Collective bargaining can take place at several levels: cross-sectoral, sectoral or company/enterprise level. The predominant level is measured in terms of coverage of employees by collective agreements at the various levels.

Extension Mechanism

Rare extension
Extension mechanisms refer to the rules that ensure that a collective agreement also applies to companies and employees who are not a member of the signatory parties to the agreement (i.e. trade unions and employers' associations).

Valididy of Collective Agreeements after expirations?

No
Are the collective agreements in your country still valid beyond their expiration? (yes or no)

Exclusion of group of employees from collective bargaining

none
In some countries certain groups of employees (for instance civil servants or solo self-employed) do not have the right to collective bargaining.

Trade Union Involvement in Action Plan drafting

Consultation ongoing
The Directive's requirement to establish an action plan to promote collective bargaining includes the obligation of timely and meaningful involvement of trade unions (based on info from affiliates).

Trade Union Density

11.40%
Trade union density is measured as the share of employees who are a member of a trade union (in percent) of the overall workforce (OECD/AIAS ICTWSS database, 2019 or the most recent year available)

Collective bargaining clauses in Public Procurement

none
This category refers to clauses which ensure that public contracts are awarded only to those companies which provide collectively agreed wages and which respect the workers' right to bargain collectively.

Call to introduce or strengthen sectoral system of collective bargaining

none
The Directive explicitly requires Member States to strengthen (cross-)sectoral bargaining because countries with a bargaining coverage of 80% and more are characterized by well-developed sectoral bargaining systems.

Right of Access to workplace (also digitally)

yes, by legislation
The trade union right of access to companies is an important tool to increase bargaining coverage by strengthening the trade unions' capacity to act. This right can be granted either by law or by collective agreements and it either covers only companies where there is a union presence or all companies.

Protection of workers and trade union representatives against dismissal/discrimination

yes
Article 4(1) of the Directive stipulates that the Member States must take measures to protect the exercise of the right to collective bargaining and to protect these workers and union representatives from discrimination on the grounds that they participate or wish to participate in collective bargaining on wage-setting.

Financial incentives for union members

none (tax deduction of TU member fees discontinued since 2024, remains for employers)
One way to increase collective bargaining coverage by strengthening the unions' capacity to act is by providing financial incentives for workers to become a trade union member. This can take different forms which are set out in this category.

Presence of employers’ federation(s) with negotiating mandate

55,5% density
One important reason for low collective bargaining coverage is the fact that there are no sectoral employers' associations as a negotiation partner of trade unions. Or where they exist they often do not have a negotiation mandate. Thus, promoting the establishment of sectoral employers' associations with a negotiation mandate is another important tool to increase bargaining coverage.

Obligation for employers to engage in sectoral bargaining

none
One principal reason for low bargaining coverage is the fact that employers and their associations are not willing to engage in negotiations with trade unions. An obligation for employers to engage in meaningful negotiations with trade unions could help to increase collective bargaining coverage.

Did your country start the process of transposition?

Transposed
Concerning either the Minimum Wage settings or the Collective Bargaining systems. Monitored and categorised as: N/A; Assessment of current situation completed: no actions required; Not started; Discussion / preparation ongoing; Draft Legislation published; Parliamentary discussion started; Transposed.