Employee Net / Gross Salary in Czech Republic
Social- and Health Charges on Salaries, Employer's part and Employee's partAn 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%), mith a maximum of cca 500K CZK,
- Employee's part health charges (4.5%),
- Employee's part income tax (15%, over solidarity limit: 2020 and before: 22%, starting 2021: 23 %).
- The solidarity limit goes up each each by cca 100.000 CZK, currently it is about 1.7 M CZK
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 34% more than the gross salary.
UPDATE 2021: how to calculate Income TaxFor 2020 and before, the Income Tax was cacluated on the *super gross* income, so basically also taxes were paid on social- and health contributions by the employer - a quite illogical system.
Starting 2021, the income taxes are calculated from the gross salary (as is common in many countries). The result is that, compared to 2020, an employee will get a few 1000 CZK more net salary. The salary costs for the *employer* will not change, though.
For this reason, many companier use the 'Schwarz-system', hiring people on živnostenský list instead of employing them. Invoicing the 'gross salary' results in a much higher 'net salary' and the employer does not pay the 'super hruba' part. In theory, the social office could issue a penalty if they decide the external worker is in fact a fulltime employee. However, we have yet to come across such a situation, so the risk is quite small and only in very specific cases
Examples of Net, Gross & Supergross amounts for Czech salaries 2021 vs 2020
|Super Gross Salary||20070||26760||33450||40140||46830||53520||66900||80280||93660||107040||120420||133800||167250||200700||234150||267600|
|Social Contributions - Employer||3720||4960||6200||7440||8680||9920||12400||14880||17360||19840||22320||24800||31000||37200||43400||49600|
|Health Insurance - Employer||1350||1800||2250||2700||3150||3600||4500||5400||6300||7200||8100||9000||11250||13500||15750||18000|
|Social Contributions - Employee||975||1300||1625||1950||2275||2600||3250||3900||4550||5200||5850||6500||8125||9750||11375||13000|
|Health Insurance - Employee||675||900||1125||1350||1575||1800||2250||2700||3150||3600||4050||4500||5625||6750||7875||9000|
|Net Salary 2021||13350||17120||20820||24520||28220||31920||39320||46720||54120||61520||68920||76320||94820||112661||129161||145661|
|Net Salary 2020||12405||15850||19295||22740||26185||29630||36535||43425||50315||57205||64095||71000||88225||104718||120193||135683|
|Difference 2021 / 2020||945||1270||1525||1780||2035||2290||2785||3295||3805||4315||4825||5320||6595||7943||8968||9978|
|Net / Gross %||89||85||83||81||80||79||78||77||77||76||76||76||75||75||73||72|
|Super Gross / Net %||150||156||160||163||165||167||170||171||173||173||174||175||176||178||181||183|