Social security contributions in detail
Employees contribute 6.5% of their gross taxable income to social security schemes. Employers contribute an amount equivalent to 25% of the gross taxable income of all employees. This comprises 2.3% for sickness insurance (2.1% as of 1 July 2019), 21.5% for pension insurance and 1.2% for the state unemployment scheme. The maximum annual assessment base for social security contributions for both the employee and employer is CZK 1,569,552 (EUR 61,031) in 2019.
There is no maximum assessment base for health insurance purposes in the Czech Republic. Employees contribute 4.5% of gross taxable income to health insurance. Employers contribute an amount equivalent to 9% of the gross taxable income of all employees.
Note that if a person’s earnings do not exceed CZK 3,000 (EUR 116.65), no social security payments are payable, but health insurance must be paid (as the threshold for that is the minimum wage).
Author: Randl Partners
Date: March 2019
Note: All currency conversions into EUR were made on 1 February 2019, using a mid-market rate.