With the amendment to the Labour Code, a decree on the determination of the flat-rate amount of reimbursement for telework (home office) for the year 2023 also entered into force on 1 October. The amount of this compensation has been set at CZK 4.60 for each hour of telework. The amount of compensation in excess of this limit will be treated as taxable income of the employee, while compensation up to the limit will not be subject to personal income tax. The flat-rate amount is based on data from the Czech Statistical Office on the consumption of an adult in an average household in the Czech Republic.

However, flat-rate reimbursement is only one of the options. Reimbursement of costs that the employee demonstrably incurs in connection with the performance of telework is the second option. If a flat-rate method of reimbursement is agreed or fixed, proven costs of the same type cannot be provided. Among other things, the employer has the option of entering into an agreement with his employee that he is not entitled to any compensation in this respect.

Author: Roman Burnus, Anna Beránková