30-12-2023
Payroll
Czech Republic
payroll, employee benefits, tax progression, sickness insurance, e-mobility, meal vouchers
Download here the English+Czech bilingual pdf of this newsletter:
Legislative changes impacting payroll in Czechia in 2024 – II – SME Info Czechia 2023-04 2
Minimum wage
The full-time minimum wage has been increased to CZK 18,900 per month (CZK 112.5 per hour).
Social security
The maximum base for insurance payments is CZK 2,110,416.
The employee’s insurance rate has been increased by 0.6% – the total employee rate will therefore be 7.1%. The employer’s rate remains unchanged at 24.8%.
Meal allowance, meal vouchers, meal subsidy
The rules for the meal allowance, meal vouchers and meal subsidy have been newly unified.
From 1 January 2024, the amount up to 70% of the upper limit of statutory meal allowances (5-12 hours) for employees is exempt from tax and at the same time this amount is tax deductible for employers. For 2024, this amount is CZK 116.20.
Home office allowance
The amount of Home office allowance valid from 1st January is 4,50 CZK per hour.
Income Tax
The threshold for the increased (progressive) tax rate of 23% has been reduced to CZK 1,582,812 per year (CZK 131,901 per month).
From 1 January 2024, the student tax credit has been cancelled.
The tax credit for kindergarten fees has been also abolished and a time limit for the tax credit for spouses has been set and is available only for spouses with 3-year-old and younger children.
Tax deduction for examinations verifying the results of further education and the deduction of the contribution paid to a trade union has also been abolished.
Benefits
An annual limit for the exemption from payroll contributions for certain non-monetary employee benefits has been set – for 2024, it is CZK 21,983.50. Benefits above this limit will be subject to employee’s as well as employer’s contributions.
The limit of CZK 21,983.50 is not applicable for meal allowances, contributions to education organized by the employer (professional training, language lessons needed for the performance of work) and contributions to life and pension insurance.
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Download here the English+Czech bilingual pdfσ of two newsletters:
Part II Legislative changes impacting payroll in Czechia – SME Info Czechia 2023-04-2
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Part I Legislative changes impacting payroll in Czechia – SME Info Czechia 2023-04
The purpose of SME INFO is to provide general information and to draw the attention to the current changes in law which we believe to be important for the business operation of our clients. It is not a replacement for careful review of the acts and rules and the consultation with your tax advisor. © Copyrights 2023, Process Solutions, – All rights reserved