The minimum wage increase impacts also the growth of the lowest levels of guaranteed wage. The guaranteed wage sets the lowest price of work for a fixed weekly working time of 40 hours, graded according to its complexity, responsibility and effort. The guaranteed wage ranges from the minimum wage in the first group (e.g., kitchen assistants, mail delivery) to twice the minimum wage in the highest eighth group (e.g., financial and business bosses of organizations, financial and capital market brokers) where it can thus be in the amount up to CZK 30,400 as of 1 January 2021.
Given that many of the limits in the Income Tax Act are tied to the minimum wage, its increase also has tax implications. Specifically, the following amounts will be applicable to personal income taxation in 2021:
Last but not least, the increase of the minimum wage also has an impact on the payment of health insurance premiums for persons without taxable income, which will amount to CZK 2,052 per month (in 2020 it was CZK 1,971).
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