Employee Net / Gross Salary 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%), 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 Tax

For 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
Gross Salary 15000 20000 25000 30000 35000 40000 50000 60000 70000 80000 90000 100000 125000 150000 175000 200000
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
Income Tax 2250 3000 3750 4500 5250 6000 7500 9000 10500 12000 13500 15000 18750 23159 28909 34659
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

Source: kurzy.cz