A. Update

According to the Act on Sickness Insurance (Section 94 of Act No. 187/2006 Coll.), employers are obliged to notify the commencement of employment within a period of 20 days of the following calendar month and termination of employment within 8 calendar days from the date of termination, for the participation in the sickness insurance scheme in the prescribed form "Notification of commencement/ termination of employment” (ONZ) for all the employees.

The Czech Social Security Administration (CSSA) has amended Act No. 187/2006 Coll. by including new block of data that will serve the Labour Office of Czech Republic for the purpose of unemployment benefits, so that it will not be necessary to document several facts separately. The new blocks of data are as following:

• Reason for not providing documents.
• Type of employment
• Average net monthly earnings
• Reason for the termination of employment relationship
• Severance pay – a multiple of income
• Surrender value - a multiple of income.
• Pension insurance period

The CSSA has insisted on using modified ONZ form in cases where the commencement or termination of employment occurred on or after April 01, 2022. The original ONZ form (2009) can only be used in case of retrospective reporting i.e., for commencement and termination of employment before April 01, 2022.

B. Statutory Compliance Release Date: April 01, 2022

C. Effective Date: April 01, 2022

A. Update

Decree 237/2022 released by the Ministry of Labour and Social Affairs has amended the rate of basic compensation for subsistence allowance and use of road motor vehicles during their business trip as summarized below:

1. Employees are entitled to a meal allowance during the business trip for each calendar day in accordance with Section 163(1) of the Labour Code which should be at least as follows:

2. 	Until August 19, 2022	From August 20, 2022
   Hours on business tripsAllowance amount	Allowance amount	Allowance amount
   Between 5 to 12 hours	CZK 99	CZK 120
   Longer than 12 hours to 18 hours	CZK 151	CZK 181
   Longer than 18 hours	CZK 237	CZK 284

   The average price of one litre of 98 octane petrol has increased from CZK 40.50 to CZK 51.40. The average price is used in calculations of reimbursements of travel expenses of employees who use their own vehicles during business trips and failed to document the actual price of fuel by means of a purchase document.

B. Statutory Compliance Release Date: August 19,2022

C. Effective Date: August 20, 2022

A. Update

The Czech government has released the Regulation No.586/1992 coll., amending the tax threshold and sickness insurance capping for the Tax Year 2023 as below.

1. Changes in Income tax threshold:

For the calculation of Income tax, the tax rate of 15% is to be applied on the revised monthly taxable base i.e., 161 296 CZK which is equivalent to 4 times of the average weekly wage i.e., 40 324 as provided below:

2. Sickness Insurance:

For the Tax year 2022, sickness insurance contributions are calculated on the minimum monthly cap of 3 500 CZK. However, after the current average wage revision, the minimum monthly cap has been changed for the Tax year 2023 as 4 000 CZK, i.e., 1/10 of average wage (40 324 CZK).

B. Statutory Compliance Release Date: October 11, 2022

C. Effective Date: January 01, 2023

A. Update

Under various sections of Act No. 262/2006 Sb., the Czech “Labour Code”, employees are entitled to Travel Compensation in form of compensation for use of road motor vehicle and/or meal allowance in certain circumstances. Using powers conferred under section 189 of the aforesaid Act, Ministry of Labour and Social Affairs, vide Decree No. 511/2021 Sb., has announced new rates applicable for the tax year 2022:

Rate of basic compensation for the use of road motor vehicles

The rate of basic compensation for 1 km of driving according to Section 157 par. 4 of the Labour Code is at least:

• single-track vehicles and tricycles CZK 1,30
• passenger road motor vehicles CZK 4,70
• wagon, bus, tractor CZK 9,40 (interpreted in line with section 158 of the Labour Code)

Meals

For each calendar day of the business trip, employees are entitled to a meal allowance in accordance with Section 163(1) of the Labour Code which should at least be as follows:

• CZK 99, if the business trip lasts 5 to 12 hours,
• CZK 151, if the business trip lasts longer than 12 hours, but no longer than 18 hours,
• CZK 237, if the business trip lasts longer than 18 hours.

For each calendar day of the business trip, employees are entitled to a meal allowance in accordance with Section 176(1) of the Labour Code in the following amount range:

• CZK 99 to CZK 118, if the business trip lasts 5 to 12 hours,
• CZK 151 to CZK 182, if the business trip lasts longer than 12 hours, but no longer than 18 hours,
• CZK 237 to CZK 283, if the business trip lasts longer than 18 hours.

The average price of fuel

The amount of the average price of fuel according to section 158(3) sentence three of the Labour Code is:

• CZK 37,10 per 1 litre of 95 octane motor gasoline,
• CZK 40,50 per 1 litre of 98 octane motor gasoline,
• CZK 36,10 per 1 litre of diesel,
• CZK 4,10 per 1 kilowatt hour of electricity.

B. Statutory Compliance Release Date: December 23, 2021

C. Effective Date: January 01, 2022

A. Update

The Czech Government vide Decree No. 462/2021 Coll. has announced the per day basic rates of foreign meal allowance (also referred to as ‘Foreign Catering Fee’) for the year 2022.

Following are the rate changes for specific countries for 2022 vis-à-vis rates for 2021:

The complete list of rates for all prescribed foreign countries is available in annexure to the given Decree.

B. Statutory Compliance Release Date: December 10, 2021

C. Effective Date: January 01, 2022

A. Update

Czech Republic Government vide Regulation No. 405/2021 Coll. amended Decree No. 567/2006 Coll., wherein:

• The basic rate of the minimum wage for a standard weekly working time of 40 hours shall be:
• CZK 96,40 (from 90,50) per hour or
• CZK 16 200 (from 15 200) per month
• The lowest levels of guaranteed wages for a standard weekly working time of 40 hours, classified into 8 groups, shall be:

B. Statutory Compliance Release Date: November 05, 2021

C. Effective Date: January 01, 2022

A. Update

Czech Republic government announced an increase in the minimum monthly wage to CZK 16 200 from CZK 15 200 beginning January 1, 2022.

This will also have impact on minimum assessment base for Public Health Insurance Contribution.

B. Statutory Compliance Release Date: November 05, 2021

C. Effective Date: January 01, 2022

A. Update

The Ministry of Labor and Social Affairs, vide Regulation 380/2021 Sb., has declared that the amount of reduction limits valid in year 2022 for the adjustment of daily assessment base for the purposes of sickness insurance as under:

• the first reduction limit as CZK 1 298, increased from the current limit of CZK 1 182,
• the second reduction limit as CZK 1 946, increased from the current limit of CZK 1 773 and
• the third reduction limit as CZK 3 892, increased from the current limit of CZK 3 545.

B. Statutory Compliance Release Date: October 18, 2021

C. Effective Date: January 01, 2022

A. Update

As per Section 158 of Act No. 262/2006 Sb., the Czech Labor Code, employees are entitled to Travel Compensation in certain circumstances which, inter alia, provides for the ‘average rates’ per liter of fuel consumed to be used for calculating compensation when employee fails to demonstrate the price of fuel to the employer in a credible manner. Such ‘average rates’ are prescribed in Decree No. 589/2020 Sb.

Vide Decree No. 375/2021 Sb., the Czech Government has amended Decree No. 589/2020 Sb. thus providing that the amount of the average price of fuel according to Section 158 paragraph 3 sentence three of the Labor Code is increased to CZK 33,80 per liter (from CZK 27,80 per liter) of motor gasoline 95 octane.

B. Statutory Compliance Release Date: October 18, 2021

C. Effective Date: October 19, 2021

A. Update

As per Regulation 285/2021 Coll., following amendments have been made to Act No. 586/1992 Coll. on Czech Income Taxes:

• Monthly limit of tax bonus amount of CZK 5 025 has now been removed, and
• The annual tax credit has been increased to CZK 22 320 (from CZK 19 404) for the second child, and to CZK 27 840 (from CZK 24 204) for the third and each additional child.

B. Statutory Compliance Release Date: July 27, 2021

C. Effective Date: July 28, 2021

A. Update

As per Government Regulation No. 253/2021 Coll., the assessment base for Public Health Insurance premiums paid by the State, for a person for whom the State is the payer, is set at CZK 14 570 per calendar month.

This impacts contribution calculation for Public Health Insurance when the abovementioned person is hired by a private employer.

B. Statutory Compliance Release Date: June 30, 2021

C. Effective Date: January 01, 2022