In this brief survey, we would like to inform about what changes important there are in the payroll agenda in the year 2022.
Increase of the minimum wage
- The minimum wage for full-time workload will increase from the current CZK 15,200 to CZK 16,200.
- The minimum hourly wage has increased from CZK 90.50 to CZK 96.40.
Implications of the increase in minimum wage from 1 January 2022
- The limit for exemption of income from regularly paid pensions has increase to the amount of CZK 583,200.
- The limit for the discount for the placement of a child in a preschool facility has increased to CZK 16,200.
- The minimum amount of advance payment for health insurance has increased.
- Child tax credit – the threshold for payment of the tax bonus has increased, the minimum amount of income under articles 6 and 7 of the Income Tax Act (“ITA”) is CZK 97,200.
Maximum assessment base for 2022, general assessment base, conversion coefficient, average wage
- The maximum social insurance assessment base for 2022 has increased from CZK 1,701,168 to CZK 1,867,728.
- The general assessment base for 2022 has increased from CZK 34,766 to CZK 36,119.
- The conversion coefficient for the year 2022 has changed from the original 1.0194 to 1.0773.
- The average wage (base x coefficient) for 2022 has increased from CZK 35,441 to CZK 38,911.
Higher tax credit per taxpayer
- From 2022, there will be a further increase in the tax credit per taxpayer. For income for the year 2022, it will reach the amount of CZK 30,840.
Conditions for participation in sickness insurance
- As of 1 January 2021, the decisive income for participation in sickness insurance was increased to CZK 3,500 and this amount is also valid for the year 2022.
Increase in sickness benefit and reimbursement of wage in case of incapacity to work
- As of 1 January 2022, reimbursement of wage paid by the employer as well as the sickness benefit paid by the Czech Social Security Administration in case of temporary incapacity to work has increased due to the increase of reduction limits.
- As of 1 January, the reimbursement of wage and sickness benefits for employees sick in the long term has increased.
Reduction limits for reimbursement of wage in the year 2022
Reduction limit
First CZK 227.15
Second CZK 340.55
Third CZK 681.10
Length of paternity leave doubled
- The paternal post-natal care benefit (paternity benefit) can now be taken for two weeks instead of one.
Higher maximum unemployment benefit
- The maximum amount of unemployment benefit can reach up to CZK 21,488.
- The maximum support for retraining can reach up to CZK 24,081 per month.
Higher legal earnings when registered with the Labour Office
- Newly you can earn a maximum of CZK 8,100 per month (gross).
Unseizable minimum for calculation of enforcement distraint
- The unseizable minimum per debtor newly reaches CZK 8,006.25.
- The unseizable minimum per spouse or a child newly reaches CZK 2,668.75.
Flat-rate contribution to meals
- The amount of the flat-rate contribution to meals for the year 2022 – maximum limit reaches CZK 82.60 (70% of CZK 118), for the year 2021 it was CZK 75.60.
Subsistence expenses on business trips
For every calendar day of a business trip, subsistence expenses pertain to the employee in the amount:
- CZK 99, if the business trip lasts 5 to 12 hours,
- CZK 151, if the business trip lasts longer than 12 hours but only up to 18 hours,
- CZK 237, if the business trip lasts longer than 18 hours.
The rate for basic reimbursement for the use of road motor vehicles
The rate for basic reimbursement for 1 km of a ride under article 157 paragraph 4 of the Labour Code reaches as follows, at minimum:
- CZK 1.30 in case of single-track vehicles and three-wheelers
- CZK 4.70 in case of passenger road motor vehicles
The average fuel prices
As of 1 January 2022, the average fuel prices have changed as follows:
- CZK 37.10 for 1 litre of 95 octane petrol,
- CZK 40.50 for 1 litre of 98 octane petrol,
- CZK 36.10 for 1 litre of diesel oil,
- CZK 4.10 per 1 kilowatt-hour of electricity
