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Employee benefits 2027 in Czechia: what is tax-exempt and what changes
Tým P&T Europe Services 10/26/2026 9 min
From 1 January 2027 the shared benefit limit for sport and culture ends, holidays get their own CZK 20,000 limit, preventive healthcare is not income and tips become exempt. All tax-exempt benefits in 2027 under Act No. 180/2026 Coll., compared with 2026.
Table of Contents
New rules for employee benefits apply in Czechia from 1 January 2027. They come from Act No. 180/2026 Coll., published in the Collection of Laws on 7 October 2026, which amends Section 6 of the Income Tax Act. The biggest changes: the shared annual limit for sport, culture and other leisure benefits ends, holidays and trips get their own CZK 20,000 limit, and preventive healthcare is not treated as employee income at all. Here is what is tax-exempt in 2027, up to what amount and under what conditions. All based on the wording of the act in force from 1 January 2027, as of 26 October 2026.
Overview: benefits in 2026 and 2027
| Benefit | 2026 | 2027 |
|---|---|---|
| Healthcare services and prescribed medical devices | up to the average wage (CZK 48,967 a year) | up to the average wage (CZK 51,663 a year) |
| Preventive healthcare under Annex 4 | within the health-benefit limit | not employee income, no limit |
| Sport, culture, educational and recreational facilities, company nursery, library, printed books | shared limit of half the average wage (CZK 24,483.50 a year) | no limit (company events and contributions to cultural and sports events must be customary and reasonable) |
| Holidays and trips | within the same shared limit | separate limit of CZK 20,000 a year |
| Company events for a limited group | exempt if customary and reasonable | same conditions |
| Contribution to social services (personal assistance, home care etc.) | — | newly exempt |
| Tips in food service | taxable | exempt up to 7% of monthly food-service income (revenue) |
| Meal contribution (cash meal allowance, meal vouchers) | up to CZK 129.50 per shift | 70% of the upper meal-allowance limit, 2027 amount not yet published |
| Contributions to retirement savings and long-term care insurance | up to CZK 50,000 a year | up to CZK 50,000 a year |
| Temporary accommodation | up to CZK 3,500 a month | up to CZK 3,500 a month |
| Interest-free loan | principal up to CZK 300,000 | principal up to CZK 300,000 |
| Home-office allowance | CZK 4.70 per hour | 2027 amount not yet published |
Health: two regimes
Preventive healthcare under Annex 4 to the Income Tax Act is, from 2027, not treated as employee income at all (Section 6(7)(f)), so it does not count towards any limit. The annex lists specific services from healthcare providers, for example:
- above-standard preventive check-ups,
- diabetes screening for risk groups and cardiovascular risk tests,
- cancer screening (mammography, colonoscopy, dermatology checks, gynaecological screening and similar),
- vaccination at the person's own request (other than regular, special, extraordinary and travel vaccination),
- related laboratory and imaging tests.
Other health benefits (health, medical, hygiene and similar goods and services from healthcare facilities and prescribed medical devices) remain exempt up to the average wage, i.e. CZK 51,663 a year for 2027 (Section 6(9)(d)(1)).
Sport, culture and education: the shared limit ends
Until 2026 leisure benefits shared an annual limit of half the average wage. From 2027 the following are exempt without a limit (Section 6(9)(d)(2)):
- use of educational or recreational facilities,
- use of a company nursery or other pre-school childcare facility,
- the employer's library and sports facilities,
- participation in a company event, including events with a cultural or sports programme, held for a limited group,
- a contribution to cultural or sports events,
- a contribution to printed books (except books where advertising exceeds 50% of the space).
For company events and contributions to cultural and sports events there is a condition: they are exempt only if providing them is customary for the employer given their nature and their form and scope are reasonable. The law sets no specific amount, so it is advisable to set out the benefit rules in an internal regulation.
Holidays and trips: CZK 20,000 a year
Holidays and trips are no longer part of the leisure limit but have a separate limit of CZK 20,000 per tax year (Section 6(9)(d)(3)). Any amount above it is taxable employee income subject to contributions. Note the difference: a holiday or trip falls under the CZK 20,000 limit, whereas use of the employer's recreational facility is among the benefits without a limit.
New: contribution to social services
A contribution to personal assistance, home care, emergency care, respite care, early intervention or a day-service centre or day-care facility is newly exempt, provided these are community-type services provided under a licence under the Social Services Act (Section 6(9)(d)(4)). It is especially useful for employees caring for relatives.
Meals: cash meal allowance and meal vouchers
The meal contribution, i.e. workplace catering, meal vouchers and the cash meal allowance, is exempt up to 70% of the upper meal-allowance limit for employees paid a salary on a 5–12-hour business trip, per shift with at least 3 hours worked in which the employee was not entitled to a meal allowance from a business trip (Section 6(9)(b)). For 2026 that is CZK 129.50 per shift. The 2027 amount will follow from the MPSV travel-allowance decree for 2027, which has not been published yet.
Tips in food service
From 2027 tips in food service received voluntarily by an employee in an establishment where tipping is customary are exempt. The limit is derived from 7% of the employer's monthly food-service revenue, split among the employees who received tips that month; the employer may set a different split as long as the total does not exceed 7% (Section 6(9)(g)).
Benefits without change
- professional development and retraining related to the employer's business (no limit),
- soft drinks at the workplace,
- contributions to retirement savings products and long-term care insurance up to CZK 50,000 a year in total,
- temporary accommodation in a municipality other than the employee's residence up to CZK 3,500 a month,
- an interest-free loan up to a total principal of CZK 300,000,
- the home-office allowance up to the amount payable to employees paid a salary: CZK 4.70 per started hour for 2026 (Decree No. 572/2025 Coll.); MPSV has yet to publish the 2027 amount.
Conditions not to forget
- A benefit must not be pay: benefits under Section 6(9)(d) are exempt only if they are not wages, salary, remuneration or compensation for lost income. A benefit cannot replace part of the salary.
- Non-cash form: these benefits must be non-cash. Money paid to the employee, including reimbursing a receipt for a benefit the employee paid for themselves, is taxable income. Pay the provider directly instead, e.g. by invoice, benefit card or voucher.
- Source of funding: benefits under (d) must come from the cultural and social needs fund, a social fund, after-tax profit or non-deductible expenses. For the employer they are therefore non-deductible under Section 25(1)(h). Preventive healthcare under Annex 4 is different: it does not fall under Section 6(9)(d), so the funding condition does not apply, and Section 25(1)(h) does not list it. If the employer provides it under a collective agreement, internal regulation or employment or other contract, under the wording of the act it is an expense on employees' rights under Section 24(2)(j)(4), i.e. a tax-deductible expense.
- Family members: benefits under (d) can also be provided to the employee's family members.
- Limits are tracked for the whole year and for each employee separately.
Contributions: an exempt benefit carries no insurance
The assessment base for social and health insurance includes only income that is subject to tax and not exempt from it (Section 5 of Act No. 589/1992 Coll. and Section 3 of Act No. 592/1992 Coll.). A benefit within its limit is therefore free of tax and contributions. The part above the limit is taxed and contributions are paid on it as on wages.
Example: what changes in 2027
An employee receives sports and culture contributions of CZK 20,000 and a holiday worth CZK 25,000 in a year.
- 2026: both fall within the shared limit of CZK 24,483.50. CZK 20,516.50 is taxable.
- 2027: sports and culture contributions have no limit (if customary and reasonable), and the holiday is exempt up to CZK 20,000. Only CZK 5,000 is taxable.
On that CZK 5,000, the employee pays (in the 15% band) a tax advance of CZK 750 and contributions of CZK 580 (social CZK 355, health CZK 225), and the employer pays contributions of CZK 1,690.
What to do before the end of 2026
- Review your benefits programme and internal regulation: move holidays into the separate CZK 20,000 limit and consider expanding sport, culture and preventive healthcare.
- Set up tracking: from January your payroll or benefits system must track the CZK 20,000 holiday limit and the CZK 51,663 health-benefit limit for each employee. Record preventive healthcare under Annex 4 separately, so that check-ups and screenings are not mistakenly counted towards the CZK 51,663 limit.
- Describe what is customary and reasonable for company events and culture/sports contributions in an internal regulation.
- Food-service businesses: prepare records of food-service revenue and the split of tips.
- Meal allowance and home office: add the 2027 amounts once the MPSV decrees are published.
For the full overview of 2027 changes see Payroll and employer changes in 2027, and for the impact on net pay Net salary 2027. Want your benefits and their payroll tracking set up correctly? We are happy to help.
Sources (as of 26 October 2026): Act No. 180/2026 Coll. (Part Two, amendment to the Income Tax Act), Act No. 586/1992 Coll. on Income Taxes (Section 6(7) and (9), Sections 24 and 25 and Annex 4 as in force from 1 January 2027), Act No. 589/1992 Coll. (Section 5), Act No. 592/1992 Coll. (Section 3), Decree No. 572/2025 Coll. (2026 home-office allowance), Government Regulation No. 177/2026 Coll. (2027 average wage) and Financial Administration — employment income tax, general information.
Legal Notice
This article is for informational purposes only and does not replace professional legal or tax advice. Information is processed according to Czech law valid at the date of publication. We always recommend consultation with an expert for specific situations.
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Tým P&T Europe Services
Specialists in payroll accounting, HR and accounting
