Payroll Newsletter - Archive 2025
You will find below all payroll and personal agenda related articles from 2025.
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:
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.