PRAGUE — The Czech government has approved a new mechanism for determining the minimum wage for 2027 and 2028, setting the stage for further increases in the country’s statutory wage floor.

The decision was taken at the government’s September 7 meeting as ministers approved a regulation establishing the coefficient that will be used to calculate the minimum wage during the next two years.

Under the Czech system, the minimum wage is linked to the development of average wages. The newly approved framework is intended to provide workers and employers with greater predictability about how the statutory minimum will evolve.

The government’s decision comes as households across Europe continue to deal with higher living costs, including expenses related to housing, food, energy and services. A predictable wage mechanism is intended to make future income developments easier to anticipate.

The Czech government has placed employment and living standards among its key domestic priorities. Its broader programme highlights concerns about rising household expenses and the affordability of essential services.

The latest decision is also significant for employers, particularly businesses that rely heavily on lower-paid workers. Changes in the minimum wage can affect payroll costs, employment decisions and the pricing of labour-intensive services.

The government also approved a separate regulation extending the country’s arrangements for summer time through 2031, alongside the minimum-wage decision.

Another item approved during the meeting concerned a recommendation from the children’s ombudsman regarding legislation to establish a commission for reviewing sudden child deaths. The government approved the recommendation with changes.

The September meeting therefore covered several areas of public policy, including wages, employment regulation, health-related oversight and seasonal time arrangements.

For Czech workers, however, the minimum-wage decision is likely to be the most directly significant economic measure. The new calculation framework will determine how the statutory wage floor changes in the coming years as average earnings develop.

The government’s approach aims to combine wage growth with a predictable regulatory environment for businesses, while ensuring that the minimum wage remains connected to broader developments in the Czech labour market.

The decision marks another step in the Czech Republic’s effort to establish a clearer long-term framework for wage policy and household income.