Social insurance premiums

Maximum assessment base 

The maximum assessment base for the payment of premiums for social security in 2023 amounts to CZK 1 935 552. Its amount is specified as 48 times the average wage that, for the purposes of the premium for the year 2023, amounts to CZK 40 324 (40 324 x 48 = 1 935 552). 

Discount on premiums from 1.2.2023 

As of 1 February 2023, Act No. 216/2022 Coll., which amends Act No. 589/1992 Coll., comes into effect. Under this law, employers will be able to benefit from a discount on social insurance per calendar month in the amount of 5% from the total assessment bases of the employees for which the discount is applied. 

The discount applies only to employees in service or employment who:

a)       are over 55 years of age

b)      are caring for a child up to 10 years of age

c)       are caring for a close person under the age of 10 who is dependent on the assistance of another person in the first, second or third degrees.

d)      is also preparing for a future profession through studies

e)      have undergone retraining in the 1 year period prior to the calendar month for which the discount applies

f)        are disabled

g)       are younger than 21 years of age

and who work between 8 and 30 hours per week (not applicable to employees under 21 years of age). 

The discount cannot be applied to employees working with a contract for work or work performance agreement, to statutory representatives of the company, etc. The conditions for applying the discount must be met for the employee throughout the calendar month or for a part of the month in the event of the start or the termination of the employment during the calendar month.

If the employee performs more than one job with the same employer, the discount on the insurance fee is only for one job; the limit on the number of hours applies to all these jobs together.

In the event that an employee works with more than one employer, only one employer is entitled to a discount per calendar month. The employer will be able to verify whether an employer has already registered an intention to apply a discount to the insurance premium for a particular individual by logging into the Czech Social Security Administration portal (ePortál) through the new "Record of intent to apply a discount on the insurance fee for an employee” service. 

The discount on the employee's insurance premium shall not apply if:

• the employee's assessment base from all employment relationships is higher than 1.5 times the average wage (i.e., CZK 60 486)
• the employee's assessment base from all employment relationships per hour is higher than 1.15% of the average wage (CZK 463,73)
• the time worked from all the employment relationships is greater than 138 hours. 

The discount on the insurance premium is rounded up to the whole crown and it will be possible to apply if for the month of February 2023 (i.e., in the payment period in March 2023). 

The employer must inform the Czech Social Security Administration electronically of its intention to apply a discount on the employee insurance premium by means of a new e-submission ‘Notice of intent to apply a discount on the employee insurance premium’ no earlier than 1 month before the date from which it will apply the discount on the insurance premium and no later than by the deadline for giving an overview of the amount of the premiums for the calendar month for which it applies the discount on the insurance premium for that employee. The notification may not be submitted before the employee's entry into employment is submitted. 

The employer may only apply the discount until the payment date for the calendar month to which the discount on the insurance premium pertains, specifically on the ‘Overview of the amount of premiums for 2023’ form. The employer shall then deduct the discount from the amount of insurance premiums for the calendar month in question. If the employer deducts a discount on an insurance premium in excess of the amount that could have been deducted, the amount by which the premium was thus reduced shall be treated as a debt on the insurance premium. On the contrary, if a discount on the premium is deducted from the amount of the premium in a lower amount than might have been deducted, arrears on the premium discount will not arise.