Changes in Payroll Accounting for 2025

Significant changes in payroll accounting are coming in 2025, affecting all employers in the Czech Republic. These changes primarily concern the increase in minimum wage, changes in social and health insurance, and new rules for income tax calculation.

From January 1, 2025, the minimum wage increased to CZK 20,800 per month, representing an increase of CZK 1,900 compared to 2024. This change will be reflected in the calculation of minimum guaranteed income, which is important for more complex wage systems.

The social security insurance rate remains the same - 7.1% paid by the employee, 24.8% by the employer. The maximum assessment base for 2025 is CZK 2,234,736 annually.

The health insurance rate does not change - 13.5% of the base (4.5% employee, 9% employer). The minimum base for health insurance for self-employed persons is CZK 23,278.50 per month.

The basic allowance per taxpayer remains CZK 30,840 annually. However, changes in the application of certain tax benefits are newly introduced.

1. Update your payroll systems according to new rates 2. Inform employees about changes 3. Prepare for increased labor costs 4. Consult specific situations with experts According to Act No. 586/1992 Coll., on income taxes, and Act No. 589/1992 Coll., on social security insurance premiums, employers are obliged to implement these changes no later than January 31, 2025.