Payroll Newsletter - Archive 2025
You will find below all payroll and personal agenda related articles from 2025.
Unified monthly employer reporting
Unified monthly employer reporting is a digitalisation project designed to serve as an effective means of communication between the state and business entities. Employers are required to provide information about themselves and their employees, which currently involves filling out and submitting many types of forms to various state institutions. The draft law from the Ministry of Labour and Social Affairs on the Unified Monthly Employer Reporting aims to significantly simplify administration. Instead of up to 25 forms, employers will only submit one report per month with all the necessary information, electronically. Another goal is more effective communication with the state.
Changes in reporting the hiring of foreign nationals from 1 October 2025
Changes in other important personal obstacles to work
In connection with the so-called Flexi-amendment, which fundamentally changed the Labour Code, some related regulations were also amended. Government Regulation No. 590/2006 Coll., which defines other important personal obstacles to work, was also amended. The changes took effect together with the Flexi-amendment on 1 June 2025.
Contractors – mandatory medical examinations from 1 June 2025 for risk category 2
On 1 June 2025, the so-called Flexi-amendment to the Labour Code came into force, along with other accompanying changes to laws, such as the Act on Specific Health Services. From June 2025, the obligation for employers to send employees who perform work in risk category 1 for initial medical examinations was abolished. However, due to an oversight, the exception for employment based on agreements concluded outside of an employment relationship (i.e. CFW and FWA) in risk category 2 was also removed, meaning that these employees must now also have a valid medical certificate before starting work.
Mandatory employer contribution to old-age savings products for the 3rd risk category
In relation to the adoption of the pension reform, which excluded employees working in the 3rd risk category of jobs from the possibility of early retirement, the Czech government promised to promote a law that would introduce a mandatory contribution to old-age savings products by employers for employees who perform work classified in the 3rd risk category. The aim of this amendment is to enable these employees to obtain higher financial resources to help them bridge the period before reaching the normal retirement age by drawing on a "pre-retirement pension", for example.
Mandatory share of persons with disabilities for 2025
Employers with more than 25 employees are required to employ at least 4% of persons with disabilities. The decisive indicator here is the employer's annual weighted number of employees. If this condition is not met, employers may instead use the option of purchasing services or goods from designated entities listed in the Employment Act, as part of substitute performance, or pay a levy to the state budget for failing to meet the mandatory quota.
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 does not set the actual amount of the minimum wage, but determines the coefficients for its subsequent calculation. Similarly, the lowest levels of the guaranteed wage will be announced.
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:
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