Based on the draft government decree, the average wage will increase to CZK 46,557 in 2025. Since the proposal has already been approved, below is a summary of the specific changes to the indicators that will be affected by the new average wage level.

Progressive tax rate

The key to applying the rate is 36 times the average wage, which for 2025 will be CZK 1,676,052. Employees’ income exceeding CZK 139,671 per month will be taxed at a progressive tax rate of 23% in 2025 (CZK 7,770 more than in the previous year).

Exemption limit for non-monetary benefits

The annual limit for the exemption of non-cash employee benefits will increase to CZK 23,278.50 for 2025 (an increase of CZK 1,295 compared to the previous year).

Small-scale employment

Furthermore, the qualifying income for small-scale employment will probably increase to CZK 4,500 (from CZK 4,000 previously).

Maximum assessment base

The limit for the maximum assessment base is set at 48 times the average wage, which means that the amount for 2025 is CZK 2,234,736 (CZK 124,320 more than in the previous year). No social security contributions are payable on income above this threshold. 

Minimum base of assessment

The average wage also affects the minimum assessment base for determining public health insurance contributions for self-employed persons. The calculation of advance payments is based on the average monthly gross salary, with an insurance rate of 13.5%. For the year 2025, the monthly amount is therefore increased to CZK 3,161 (instead of the current CZK 2,968).

Social security contributions for self-employed persons will also increase. The minimum amount of the advance payment of the insurance premium is now increased to CZK 4,786 for the main activity and to CZK 1,505 per month for a secondary activity.