From 1 January 2026, new values for key calculation parameters came into force in the Czech Republic. In practice, this means business owners and accountants need to update their payroll settings, review the limits that apply to different contract types, and adjust the rules for business trips, meal allowances, and compensation for remote work.
Below, we explain in plain language what exactly changed in 2026 and where these updates show up in payroll calculations.
Minimum wage in 2026
From 1 January 2026, the minimum wage (minimální mzda) increased to
- CZK 22,400 per month
- CZK 134.40 per hour
In 2025, it was CZK 20,800 per month and CZK 124.40 per hour.
The minimum rate is set for full-time work, i.e. 40 hours per week. For contracts agreed outside standard employment relationships, the hourly minimum wage is more commonly used as the reference point.
What the minimum wage increase affects
An increase in the minimum wage matters not only for those who earn the minimum. It automatically shifts a number of thresholds and conditions used in payroll calculations.
— Income threshold for the monthly child tax bonus (DBD)
For an employee to receive the monthly child tax bonus (daňový bonus na dítě) through payroll, they must earn at least half of the minimum wage in a given month.
In 2026, this is CZK 11,200 per month.
In 2025, it was CZK 10,400.
In practice, this means that for low-hours employment or irregular payments, payroll teams need to check this threshold month by month.
One-off work agreement (DPP) in 2026: new insurance and tax threshold
From 2026, a new threshold applies to the one-off work agreement (DPP, dohoda o provedení práce).
If monthly income under a DPP is below CZK 12,000, that income
- does not create participation in sickness insurance (nemocenské pojištění)
- is not subject to social security contributions (sociální zabezpečení) or health insurance contributions (zdravotní pojištění)
If, in addition, the taxpayer’s declaration (Prohlášení k dani) has not been signed, DPP income is usually taxed via a 15% withholding tax (srážková daň).
In 2025, the threshold was CZK 11,500.
Small-scale employment in 2026 remains unchanged
For small-scale employment (zaměstnání malého rozsahu), where income is not agreed in advance or is agreed below the threshold, the rules on participation in insurance remain the same as in 2025.
Participation in sickness insurance arises once monthly income reaches CZK 4,500.
Average wage in 2026 and the 23% bracket threshold
In 2026, the average wage (průměrná mzda) used for calculation purposes is CZK 48,967 per month. In 2025, the applied figure was CZK 46,557 per month.
As a result, the threshold from which the progressive 23% income tax rate applies has changed.
In 2026
- up to a tax base of CZK 146,901 per month (CZK 1,762,812 per year), the tax prepayment is calculated at 15%
- above this amount, the 23% rate applies
In 2025, the threshold was CZK 139,671 per month (CZK 1,676,052 per year).
In practice, this matters for higher earners, because it changes the point at which part of their income starts to be taxed at the higher rate.
Employee benefits: new limits in 2026
In 2026, the tax-exempt limits for non-cash benefits (nepeněžní benefity) provided by employers to employees increased.
Non-cash health-related benefits (zdravotní nepeněžní benefity)
In 2026, the tax exemption applies up to CZK 48,967.
Important: these benefits must not be used as a substitute for salary.
Other non-cash benefits (ostatní nepeněžní benefity)
In 2026, the tax-exempt limit is CZK 24,483.50.
In 2025, the limit was CZK 23,278.50.
Employee meals: new tax-free limit in 2026
A meal allowance (příspěvek na stravování) — whether provided as workplace catering, meal vouchers (stravenky), or a cash contribution — is tax-exempt up to a limit of CZK 129.50 per shift, provided the relevant conditions are met (in 2025, the limit was CZK 123.90).
For businesses, this means that if you provide meals or a cash meal contribution to employees, it is worth updating the limit in your payroll settings to avoid unnecessary taxation on any amount above the permitted threshold.
Business trips within the Czech Republic in 2026: new rates
The 2026 rates for domestic travel reimbursements (tuzemské cestovní náhrady) were published in the Collection of Laws (Sbírka zákonů) under No. 573/2025 Sb.
Basic reimbursement for using a car
The basic reimbursement rate per 1 km (základní náhrada za 1 km jízdy) in 2026 is CZK 5.90 per km (it was CZK 5.80 per km in 2025).
Daily allowances: upper tax-exempt limits (horní hranice stravného)
- 5–12 hours: CZK 185
- 12–18 hours: CZK 284
- over 18 hours: CZK 442
Daily allowances: minimum amounts (minimální výše stravného)
- 5–12 hours: CZK 155
- 12–18 hours: CZK 236
- over 18 hours: CZK 370
Average fuel and electricity prices for calculations (průměrné ceny pohonných hmot)
- Petrol 95: CZK 34.70 per litre
- Petrol 98: CZK 39.00 per litre
- Diesel: CZK 34.10 per litre
- Electricity: CZK 7.20 per kWh
Your travel reimbursement calculations should be updated so that all payments are computed correctly and remain within the applicable limits.
Remote work in 2026: the flat-rate compensation is lower
The flat-rate compensation for remote work (paušální náhrada za práci na dálku) for 2026 was published in the Collection of Laws (Sbírka zákonů) under No. 572/2025 Sb.
In 2026, it is CZK 4.70 per hour.
In 2025, it was CZK 4.80 per hour.
If you reimburse employees for home office using the flat-rate method, it is worth updating the figure in your payroll calculations.
A short checklist for business owners on payroll and reimbursements at the start of 2026
• ✅ Update the 2026 parameters in your payroll software;
• ✅ Review employees whose pay is close to the minimum wage, as well as all hourly rates;
• ✅ Recalculate DPP arrangements under the new CZK 12,000 threshold;
• ✅ Take into account the new CZK 11,200 threshold for the monthly child tax bonus;
• ✅ Update the meal allowance limit to CZK 129.50 per shift;
• ✅ Update domestic travel rates and the reference fuel prices used for calculations;
• ✅ Update the flat-rate remote work compensation to CZK 4.70 per hour.
Want to understand how the 2026 changes will affect your business specifically, and what needs updating in your calculations? Contact DoMyTax for advice on accounting, taxes, and payroll.
DoMyTax works with companies of any size. We help business owners in the Czech Republic with bookkeeping and tax matters.
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