Forvis Mazars Payroll Newsletter 1/2025

Minimum wage

The government approved a regulation on the coefficient for calculating the minimum wage in 2025 and 2026, which sets one of the key parameters of the minimum wage indexation mechanism. The regulation was issued on the basis of the mandate of the Labour Code, which sets out the minimum wage indexation mechanism and the government's obligations in the process of updating the minimum wage. The Regulation...

Amendment to the Labour Code

In connection with the adoption of Act No. 230/2024 Coll., a change was made to Section 87a of Act No. 262/2006 Coll., the Labor Code, as amended, effective from January 1, 2025.

Increase in pensions, education

Government Decree No.282/2024 Coll. changes the basic rate of old-age, disability, widow's, widower's and orphan's pensions - for 2025 it is CZK 4 660. The basic amount of the pension was thus increased by CZK 260 per month compared to 2024 for all pensions awarded before 1 January 2025, and the percentage rate was increased by 0.6%.

Sickness insurance

The Ministry of Labour and Social Affairs (MLSA) in Announcement No. 307/2024 Coll. from 24 October 2024 increases the reduction limits for the adjustment of the daily assessment base (DAB) valid from 1 January 2025 for the calculation of the amount of sickness insurance benefits. The new reduction limits are as follows:

Social insurance

Health insurance

The minimum assessment base for the payment of health insurance in 2025 amounts to CZK 20 800 per month, the minimum amount of the monthly premium amounts to CZK 2 808 (CZK 20 800 x 13.5% = CZK 2 808).

Taxes

As of 1 January 2024, the child placement discount (known as the "childcare allowance") has been abolished in connection with the adoption of the consolidation package - this discount can no longer be claimed in the annual tax return or in the tax return for 2024.

Travel allowances – meals

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.

Lump sum for remote work

The amount of the lump sum for the reimbursement of costs for remote work is specified by Decree of the Ministry of Labour and Social Affairs No. 474/2024 Coll. of 19 December 2024.

Wage deductions

As of 1 January 2025, there is a change in the calculation of the non-forfeitable amount (Government Decree No. 465/2024 Coll.). It is now not possible to include a spouse or registered partner among dependants unless they have been granted an old-age pension, a second- or third-degree disability pension or an orphan's pension. For the purposes of enforcement, the only dependent will therefore be...