Changes in payroll 2026 in Czechia

Starting in 2026, major changes will reshape payroll and reporting obligations for employers in the Czechia. A new Single Monthly Report, effective from April, will replace up to 25 existing reports, streamlining administrative processes. Minimum and average wages have increased, along with other adjustments, including new electronic reporting requirements.

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SME Info Czechia Nr.2026-1 – Changes in payroll 2026 in Czechia:

Single Monthly Report

Live from 1 April 2026 (with retroactive effect from January 2026), is replacing up to 25 current reports.
January to March 2026 social insurance reports are not required, not effecting the payments.
Monthly reports for January to March 2026 are due with April to June 2026 reports.

Reference values

Minimum wage is increased to CZK 22,400 per month (CZK 134.40/hour).
Average wage increased to CZK 48,967
Contribution for remote work: CZK 4.70
Meal allowance – the daily tax-free limit increases to CZK 129.50

Social insurance

assessment base: CZK 2,350,416.
DPP (Agreement to perform work): decisive income increased to CZK 12,000.
DPČ (Agreement on Work Activity): decisive income remains CZK 4,500
New report from 1.1.2026 to 31.3.2026: Employment report of a beneficiary of an early retirement pension and a beneficiary of an old-age pension with a reduced retirement age
Compulsory old-age allowance: From 1 January 2026, employers are obliged to contribute to old-age savings (supplementary pension insurance and supplementary pension savings) for employees in the third category of risky work (increased heat and cold load, physical demands, vibrations, dynamic work), in the amount of 4% of the assessment base, if they work at least 3 risky shifts per month. Employer’s information obligation – the employer informs the employee in writing of the right to a mandatory contribution.

Health insurance

Minimum assessment base: CZK 22,400 (linked to the minimum wage).
From 1 January 2026, the category of insured persons of the state for a person caring for at least 2 children under 15 years of age will be abolished – the employer will now only report the start of maternity or parental leave
employee caring for a child under 7 years of age – The minimum assessment base does not apply to an employee who personally and properly cares for at least one child under 7 years of age. To make a claim, the employee must notify and document this fact to their health insurance company, wait for the assessment and confirmation of the claim by the insurance company and then submit the confirmation to the employer. The claim is accepted from the date specified in the notification, but not earlier than from the day following delivery to the insurance company. Retroactive recognition is not possible.
From 1 January 2026, reports: Employer’s Collective Notification (HOZ) and Summary of Premiums (PPPZ) will be submitted exclusively electronically (e.g. via the portal of the given insurance company or a data box).

Taxes

Progressive taxation: The rate of 23% will be applied to annual income over CZK 1,762,812 – monthly on an amount above CZK 146,901.
From 1 January 2026, the deadline for the payment of advance tax and withholding tax is unified to the 20th calendar day of the following month
Annual limit for exemption of benefits:
Leisure activities: CZK 24,483.50.
Health benefits: CZK 48,967.
Withholding taxes on remuneration of non-resident statutory bodies are abolished from 1 January 2026

Employee registration

From 1 January 2026, the obligation to report agreements arises no later than 8 days after the start of the month (i.e. it is not possible to report agreements after the end of the month);
in addition to the above change, the current generous 8-day period for registering a Czech employee from the start of the contract applies only until 30 June 2026.
Applicable from 1.4.2026 for foreign nationals: full registration in the Register of Employees no later than before the moment of commencement of work, at the earliest 8 days before the expected date of commencement of employment
From 1 July 2026, the obligation to (at least partially) register all employees before starting work arises

Download the English+Czech bilingual pdf of this newsletter:
SME Info Czechia Nr.2026-1 – Changes in payroll 2026 in Czechia:

Former Czech SME INFO newsletter:

Changes in employment of foreigners in Czechia

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