Increase of minimum wage from 2019
On 20 November 2018, the government decided about an increase of the minimum wage. The minimum wage will increase by CZK 1,150 to a total of CZK 13,350. It is the second most significant increase since the introduction of the minimum wage in the year 1991. The increase of minimum wage will also affect parents of children, in the sense that the limit for applying tax credit for children will increase and it will be possible to apply it, if the parent reaches up to six times the minimum wage. At the same time, up to this sum it will be possible to apply a tax discount in the form of so-called “nursery-school fees”. The increase will also affect pensioners, in the sense that income in the form of pension or annuity is exempted from taxation, but only if it does not exceed 36 time the minimum wage. The increase in minimum wage will come into force from 1 January 2019.