Employee Social- and Health Charges in Czech Republic

Social- and Health Charges on Salaries, Employer's part and Employee's part

An employee contract will normally show the gross salary and the employer (the company) is obligated to withhold a certain part of your gross salary (hrubá mzda):

• Employee's part social charges (6.5%),
• Employee's part health charges (4.5%),
• Employee's part income tax (15%).

What you get on your bank account is the net salary (cistá mzda), which is about 3/4 of the gross salary for an average pay (see table below).

On top of your gross salary the employer is paying his part in social charges (25%) and health charges (9%).
All those sums together form the so-called 'super-gross' (superhrubá) salary, which is almost twice the net salary and 1/3 more than the gross salary.*

For this reason, many companier use the 'Schwarz-system', hiring people on živnostenský list instead of employing them. The 'gross salary' results in a much higher 'net salary' and the employer does not pay the 'super hruba' part. Ofcourse, the social office is not happy with this and can give huge fines if they decide the external worker is in fact a fulltime employee, but not on the payroll.

Examples of Income Tax, Social- and Health charges for czech salaries - 2012

Net Salary	Čistá mzda	7120	8900	12405	15850	22740	29630	36520	53745	70970
Health Employee	Zdravotní Zaměstnanec	360	450	675	900	1350	1800	2250	3375	4500
Social Employee	Zdravotní Zaměstnanec	520	650	975	1300	1950	2600	32500	4875	6500
Tax deducted at source	Záloha na dan	0	0	945	1950	3960	5970	7980	13105	18030
Gross Salary	Hrubá mzda	8000	10000	15000	20000	30000	40000	50000	75000	100000
Health Employer	Zdravotní Zaměstnavatel	720	900	1350	1800	2700	3600	4500	6750	9000
Social Employer	Sociální Zaměstnavatel	2000	2500	3750	5000	7500	10000	12500	18750	25000
Supergross Salary	Superhrubá mzda	10720	13400	20100	26800	40200	53600	67000	100500	134000

Source: Finance.cz

Back Employee Income Tax Employee Services 10/02/2012