The Minimum Wage Raised

On October 5, 2016, the government approved an increase of the minimum wage to CZK 11,000. The increase will occur as of January 1, 2017. The minimum wage will thus be raised by CZK 1100 and the minimum hourly rate will reach CZK 66. The increase of the minimum wage has an influence for example on the increase of the limit for taxation of pensions to CZK 396,000 (36 times the minimum wage), an increase of the maximum possible tax deduction for the so-called pre-school fees, an increase of the limit for the annual income of a taxpayer for the emergence of a right to tax bonus of CZK 66,000 (6 times the minimum wage), the height of health insurance paid for example by persons without taxable income, etc.