The minimum salary for foreign workers in Czechia will increase by CZK 1,900 (€74.97) as of January of the following year.
Beginning on January 1, 2025, the minimum pay requirement of 1.2 times the guaranteed salary will be replaced with a new criterion of 1.4 times the minimum wage under the Qualified Worker Program.
The responsible ministries, namely the Ministry of Labour and Social Affairs (MPSV), the Ministry of Foreign Affairs (MZV), the Ministry of Industry and Trade (MPO), and the Ministry of the Interior (MV ČR), have reached a preliminary agreement to modify the wage criteria in the Qualified Worker Program. This decision follows.
Most manufacturing companies currently have base wages guaranteed between CZK 23,000 (€907.32) and CZK 26,000(€1,025.64), and if the base wages have to jump to CZK 29,120(€1,148.80), it would be absolutely devastating for them. Additionally, they are not prepared for this, they don’t have this increase in their budgets, nor are they aware of it. This would, of course, apply to all their employees.
The new changes mean that if a company that employs a total of 1,500 workers, 200 of whom come from other countries through the Qualified Worker Program, currently has a base wage of CZK 24,500 (€966.57), from January, would need to increase the base wage for all employees to CZK 29,120 (€1,148.92).
A surge of CZK 4,620 (€182.25) for 1,500 employees translates into a cost of CZK 6,930,000 (€284,130). Including social security as well as health insurance contributions, annual wage costs would surge by a total of CZK 111,268,080 (€4,561,991.28).
If the wage criteria for foreign workers were to be increased drastically, it would largely mean the end of the Qualified Worker Program. Yet, the program is currently the only option for companies to hire a larger number of foreign workers while adhering to all legal procedures.
The ministries mentioned above will continue discussions in this regard that are set to happen during this week and the next one.
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