A positive change for 2025 is the introduction of a new limit for employees’ in-kind benefits.
Since the start of 2025, several legislative changes have come into effect that will impact both employees and employers in the Czech Republic. These changes are crucial for health and benefits professionals to understand, as they will influence various aspects of employee compensation and benefits.
Increase in Maximum Annual Assessment Base and Threshold for Progressive Tax
The minimum wage has been increased from CZK 18,900 to CZK 20,800 for a fixed weekly working time of 40 hours. The hourly minimum wage is now CZK 124.40. This change aims to improve the standard of living for employees and ensure fair compensation for their work.
Increase in Maximum Annual Assessment Base and Threshold for Progressive Tax
Both financial and non-financial meal allowances are now exempt up to an aggregate of 70% of the upper limit of the meal allowance that can be provided to salaried employees for domestic business trips of five to 12 hours. For 2025, an allowance of CZK 123.90 is thus exempt. This adjustment is designed to provide better support for employees during business trips.
Introduction of New Limits for In-Kind Benefits
A positive change for 2025 is the introduction of a new limit for employees’ in-kind benefits. Health-related benefits are now exempt from tax, social security, and health contributions up to the average wage, set at CZK 46,557 for 2025. The exemption limit for leisure-related non-financial benefits remains at 50% of the average wage, i.e., CZK 23,278.50 for 2025. Benefits above these limits will be subject to taxation, social security, and health insurance contributions.
Upcoming Changes in Labour Code
We are also expecting further significant changes in the Labour Code, which will likely take effect on 1 June 2025. Watch this space!
Our experts are on hand if you have any questions or need further clarification on any of the changes mentioned in this blog or Health & Benefits in general in the Czech Republic.
Petra Petrů
Specialist Health & Benefits GrECo Czech Republic
GrECo Czech Republic
T +420 735 175 613
