Changes in the Payroll Area in 2026

The year 2026 brings a number of changes in payroll, tax, and HR matters. These changes will affect employers not only in payroll calculations but also in internal processes and compliance obligations. In addition to the increase in the minimum wage and adjustments to tax and insurance thresholds, the changes include new regimes for work agreements, changes in the taxation of remuneration of statutory body members, adjustments to rules for company vehicles, and the digitalization of certain employment-law agendas.

This article summarizes the key changes effective from 2026 and highlights areas that deserve increased attention from employers.

• Minimum Wage and Average Wage
• Employee Benefits
• Agreements Outside Standard Employment
• Travel Allowances and Remote Work
• Wage Garnishments and Pay Transparency
• Mandatory Employment of Persons with Disabilities and Savings
• Electronic Reporting of Workplace Accidents from 2026

Minimum Wage and Related Implications

From 1 January 2026, the minimum wage increases to CZK 22,400 per month, or CZK 134.40 per hour for the standard weekly working time.

The minimum wage affects several areas, including the minimum health insurance contributions, the threshold for entitlement to the tax bonus, limits for the tax exemption of pensions, and the calculation of non-seizable amounts in wage deductions. Its increase therefore affects payroll calculations across the entire system.

In the private sector, the minimum wage remains the only statutory wage minimum. In the public sector, four levels of guaranteed salary based on the complexity of the work performed continue to apply.

Average Wage, Taxes and Contributions

For 2026, the average wage is set at CZK 48,967, which serves as the basis for calculating a range of tax and insurance limits.

•  Personal income tax rate: The higher 23% rate applies to monthly income exceeding CZK 146,901 (income below this amount is taxed at 15%).
• Social security contributions: The maximum annual assessment base increases to CZK 2,350,416. Income above this limit is not subject to social security contributions.
• Health insurance: The minimum assessment base corresponds to the new minimum wage. The minimum monthly contribution (for employees or persons without taxable income) amounts to CZK 3,024.

Employee Benefits

Changes also affect employee benefits. The tax exemption for non-cash health-related benefits increases in 2026 to CZK 48,967 per year, i.e. up to the level of the average wage. For other non-cash benefits, typically in the areas of sport, culture, or recreation, the limit is CZK 24,483.50 per year. The maximum tax-exempt meal allowance contribution is CZK 129.50 per shift, corresponding to 70% of the upper limit of the meal allowance for business trips lasting 5–12 hours.

Agreements Outside Standard Employment

The Ministry of Labour and Social Affairs issued a notice setting a new income threshold for participation in sickness insurance for employees working under an Agreement to Perform Work (DPP).

From 1 January 2026, this threshold increases to CZK 12,000.

Travel Allowances and Remote Work

For 2026, the decree of the Ministry of Labour and Social Affairs sets the rates for domestic meal allowances, the basic compensation per kilometre of travel, and reference fuel prices as follows.

Domestic meal allowance 2026:

•  5–12 hours: CZK 155–185
• 12–18 hours: CZK 236–284
• More than 18 hours: CZK 370–442

The basic compensation rate per kilometre for passenger cars in 2026 is CZK 5.90/km.

Reference fuel prices for 2026:

•  petrol (95 octane): CZK 34.70/litre
• petrol (98 octane): CZK 39/litre
• diesel: CZK 34.10/litre
• electricity: CZK 7.20 per kWh

Flat-rate compensation for remote work costs:

• CZK 4.70 for each commenced hour of remote work

Wage Garnishments

From 2026, the method for calculating the non-seizable amount in wage deductions changes. The calculation will newly be based on a combination of the subsistence minimum, normative housing costs, and a lump-sum amount for energy costs.

The non-seizable amount is CZK 14,101.50 for the debtor and CZK 3,525.38 for each dependent person.

This change in methodology will not apply only once but will affect all cases where wage deductions are applied on a long-term basis and will be reflected in their regular recalculation.

Pay Transparency

The year 2026 introduces new obligations in the area of pay transparency, arising from European legislation. These obligations mainly concern informing job applicants about salary conditions, employees’ rights to information about remuneration, and reporting of pay gaps for larger employers.

For employers, this means paying attention not only to the level of wages but also to their structure, internal rules, and the ability to clearly justify remuneration decisions.

Mandatory Employment of Persons with Disabilities

Employers with more than 25 employees are obliged to fulfil the so-called mandatory quota for the employment of persons with disabilities in the amount of 4% of the total recalculated number of employees. This obligation may be fulfilled by the direct employment of persons with disabilities, by substitute performance in the form of purchasing products or services, or by a payment to the state budget.

Since 2025, a fundamental change has occurred in the calculation of the substitute levy amount. The previous uniform coefficient of 2.5, by which the average wage in the national economy was multiplied, has been replaced by a differentiated system of coefficients, which now depends on the actual share of employed persons with disabilities.

The following coefficients now apply:

• coefficient 1 – if the employer employs at least 3% of persons with disabilities
• coefficient 2 – if the employer employs at least 1% but less than 3%
• coefficient 3.5 – if the employer employs less than 1%

Another significant change is the limitation of substitute performance. Employers providing substitute performance may now provide it only up to 14 times the national average wage (for the first to third quarters of the previous calendar year) for each recalculated employee with a disability employed in the previous year. Previously, substitute performance could reach up to 28 times the average wage.

Although these changes already apply to the fulfilment of the quota for 2025, their practical impact will be reflected in 2026, particularly when calculating and paying any substitute levy.

Mandatory Pension Savings Contributions for High-Risk Professions

From 1 January 2026, employers must pay a pension savings contribution for employees performing work classified in the third risk category.

The obligation arises in months when the employee performs at least three shifts of high-risk work. In such cases, the employer contributes 4% of the social security assessment base to statutory retirement savings products, namely supplementary pension savings or pension insurance with a state contribution.

The legal regulation also includes an information obligation. Employees must be informed about the contribution and its conditions before starting high-risk work. For employees who were already performing such work before the new regulation took effect, the information had to be provided no later than 15 January 2026.

Electronic Reporting of Workplace Accidents from 2026

From 1 January 2026, Government Regulation No. 322/2025 Coll. on employers’ obligations in the event of workplace accidents becomes effective. From this date, employers are required to report workplace accidents and submit accident records exclusively in electronic form, through the portal of the State Labour Inspection Office.