New minimum wage regulations: What will change starting in 2026?

The Government Legislation Center has published a draft of a new law on minimum wages, which will go into effect on January 1, 2026. The changes are a result of the implementation of EU Directive 2022/2041 on adequate minimum wages in the EU.

The rules for calculating wages from January 1, 2026 will undergo significant changes, so if you are an employer or responsible for human resources, be sure to check what steps you need to take to comply with the new regulations.

What are the current regulations?

The way the minimum wage is set is regulated by the 2002 Minimum Wage Law. The minimum wage is intended to protect all workers, regardless of industry or region. It also covers part-time employees, where the salary amount is calculated proportionally.

Each year, the amount of the minimum wage is negotiated in the Social Dialogue Council, which includes representatives of the government, employees and employers. After the negotiations, the Council of Ministers issues a regulation that sets the minimum wage and the minimum hourly rate. The wage and hourly rate changes twice a year.

The law guarantees that the annual increase in the minimum wage will not be lower than the projected increase in consumer prices. The calculation of the minimum wage takes into account the basic salary, other components of employee remuneration and employee benefits, excluding such elements as jubilee awards, retirement benefits, disability retirement benefits, overtime pay and allowances for night work, seniority and special working conditions.

New salary rules: What will change from 2026?

First: the Social Dialogue Council will be given greater powers, becoming a key advisory body to support the Council of Ministers in setting and updating the minimum wage.

Representation of employees and employers will have a greater influence on final decisions, allowing for the development of a wage that simultaneously fulfills social and economic functions and ensures the competitiveness of the economy.

Second: The new legislation will make it mandatory to set the basic salary at the level of at least the minimum wage. The basic salary will become the basic and obligatory component of remuneration, without including additional benefits. As a result, additional salary components will regain their motivational function.

Third: The bill stipulates that the minimum wage will be assessed annually on the basis of a reference value of 55% of the projected average wage in the national economy, adopted for the drafting of the budget law.

Fourth: The minimum wage will be updated at least once every four years, taking into account factors such as:

• the purchasing power of the minimum wage,
• cost of living,
• the general level of wages and their distribution,
• wage growth rate,
• long-term national productivity levels and their changes
• the ratio of the amount of the minimum wage to the amount of the average wage in the national economy in a calendar year, as announced by the President of the Central Statistical Office.

What will not change? Important rules that will remain unchanged

The new bill does not change the procedure for the annual determination of the minimum wage and the minimum hourly rate. As before, the salary will be updated twice a year – as of January 1 and July 1, provided that the projected price index for the following year is at least 105%. If the index is lower, the salary and hourly rate will be changed only once a year – from January 1.

The entry into force of the new regulations means that employers will have to review their compensation systems and modify their pay regulations and employment contracts.

The new regulations will affect the amount of benefits that are tied to the minimum wage, such as cash severance pay in the case of mass layoffs, allowances for night work, compensation for unequal treatment, compensation for harassment, as well as sick pay and maternity pay and other benefits.

Want to learn more about the upcoming changes? Contact our labor law specialists at [email protected].