Payroll Newsletter - Archive 2024
You will find below all payroll and personal agenda related articles from 2024.
Other upcoming changes to the Labour Code
On 27.8.2024, a bill to amend the Labour Code was submitted to the deputies as Parliamentary Print 775/0. One of the objectives of the proposed amendment to the Labour Code is to increase the flexibility of the Labour Code in the interests of both employees and employers, to respond to the development and needs of the modern labour market and to strengthen the conditions for families with children.
Deductions from wages
On 3 September 2024, Act No. 252/2024 Coll., amending Act No. 182/2006 Coll., on bankruptcy and methods of its resolution (Insolvency Act), as amended, Act No. 99/1963 Coll., Civil Procedure Code, as amended, Act No. 119/2001 Coll., came into force, No 120/2001 Coll., on bailiffs and enforcement activities (the Enforcement Code) and on amendments to other acts, as amended, and Act No 312/2006 Coll., on insolvency administrators, as amended. A substantial part of this Act shall enter into force on 1 October 2024.
There is a change in the area of deductions from wages, both in insolvency and in enforcement.
There is a change in the area of deductions from wages, both in insolvency and in enforcement.
Amendment to the Labour Code
In connection with the adoption of Act No. 230/2024 Coll., several amendments were made to Act No. 262/2006 Coll., the Labour Code, as amended. The effective date of the law is August 1, 2024, but some changes do not take effect until January 1, 2025.
Increased pensions
Government Decree No. 286/2023 Coll. changes the basic amount of old-age, disability, widow’s, widower’s and orphan's pensions - for the year 2024 it amounts to CZK 4 400. The basic amount of the pension was thus increased by CZK 360 per month compared to 2023 for all pensions awarded before 1 January 2024.
Sickness insurance
The Ministry of Labour and Social Affairs (MLSA) in Announcement No. 313/2023 Coll. from 10 October 2023 increases the reduction limits for the adjustment of the daily assessment base (DAB) valid from 1 January 2024 for the calculation of the amount of sickness insurance benefits. The new reduction limits are as follows:
Social insurance premiums
Effective from 1.1.2024, the obligation to pay sickness insurance premiums also arises for employees (until now, employees were only payers of pension insurance premiums). The total premium rate for employees from 1.1.2024 is 7.1%.
Health insurance
The minimum assessment base for the payment of health insurance in 2024 amounts to CZK 18 900 per month, the minimum amount of the monthly premium amounts to CZK 2 552 (18 900 x 13.5% = CZK 2 552).
Taxes
As of 1.1.2024, some tax discounts for natural persons have been abolished in connection with the adoption of the consolidation package. This applies to the discount for a student (until 31/12/2023: Section 35ba (1) (f) of the Income Tax Act) and the discount for the placement of the child, i.e. school fees (this discount will be applied for the last time in the application for annual tax settlement or in the tax return for the year 2023). The taxpayer discount and the tax advantage for children remain unchanged in 2024.
Travel allowances
The basic rules for providing compensation for travel expenses remains unchanged. Employees in an employment relationship continue to be entitled to compensation, as are (under certain conditions) employees performing activities according to agreements to perform work or fixed work agreements, or executives and members of statutory bodies.
Wage deductions
From 1.1.2024, there is a decrease in the (basic) unseizable amount, as well as the limit of the fully seizable remainder of net wages (i.e. the calculation base), applied during enforcement deductions from wages and similar income.
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