News | 12th September 2024
Czech Republic: Finance & Payroll Updates 2024
The Czech government has announced important updates to be considered for payroll, effective 1 January 2024.
Notably, this will see a change to social security contributions as employees will now be required to pay a 0.6% sickness insurance. This increases the total contribution rate to 7.1% (inclusive of 6.5% pension insurance contribution). The rate for employers remains unchanged at a total of 24.8%.
Each year, the maximum assessment base is confirmed and is equal to 48 times the average monthly wage. In 2024, the maximum gross amount considered for social security contributions in 2024 is 2,110,416 CZK. The Minimum Monthly Wage for 2024 has also been confirmed at CZK 18,900 (based on a 40-hour week)
Changes have also been made to the limit for progressive tax from 2024, which will have a significant impact on employees. The tax rate for gross salaries above 1,582,812 CZK, will be subject to a higher tax rate of 23%. Anything below this will be taxed at a rate of 15%.
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