Social security contributions in detail
Employees contribute 6.5% of their gross taxable income to social security schemes. Employers contribute an amount equivalent to 24.8% of the gross taxable income of all employees. This comprises 2.1% for sickness insurance, 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 1,672,080 in 2020.
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 are lower than CZK 3,000, 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: April 2020
Note: All currency conversions into EUR were made on 1 February 2019, using a mid-market rate.