Payroll Changes for 2022

We would like to inform you about what payroll changes you can expect from 1 January 2022. For example, you can learn about the increase in the minimum wage or the changes in drawing paternity leave.

Minimum wage increase

The minimum monthly salary for full-time work will increase from the current CZK 15,200 to CZK 16,200.
The hourly wage increases from CZK 90.50 to CZK 96.40.

Guaranteed wage increase

Maximum assessment base for 2021

The maximum assessment base for social security contributions in 2021 increases from CZK 1,701,168 to CZK 1,867,728.

Changes to tax credits

With effect from January 2022, the basic tax credit per taxpayer has been increased from CZK 2,320 to CZK 2,570 per month.

At the same time, the tax credit for dependent children has been increased for the second, third and each subsequent child. It will be possible to claim the higher tax credit retrospectively for 2021 as a part of the annual settlement or tax returns.

The tax credit now amounts to CZK 1,860 per month for the second child and CZK 2,320 per month for the third and each subsequent child. The tax credit for the first child in the amount of CZK 1,267 remains the same. 

Changes to sickness benefits

As of January 2022, the support period for paternity leave increases from one week to two weeks. The requirement to take paternity leave continuously before the end of a period of six weeks from the date of birth still applies; this period is extended by any period for which the child is hospitalised.

Another change was made to the drawing of the long-term carer’s allowance, where the required period of hospitalisation was reduced from seven to four consecutive calendar days. These four calendar days include the day of admission to the hospital ward and the day of discharge from the hospital.

The last change is the modification of the conditions for drawing the carer’s allowance, where the condition of a shared household with a close relative was revoked. Therefore, it is no longer necessary to share the household with direct relatives (parents, children, grandparents, grandchildren) and spouses, registered parents, siblings or parents of a spouse or a registered partner to qualify for the carer’s allowance benefit.

Sickness benefit and salary compensation for incapacity for work to increase

As of 1 January 2022, the compensation paid by the employer and sickness benefit paid by the Czech Social Security Administration in the event of temporary incapacity for work have increased as a result of the increase in reduction limits.

With effect from 1 January, salary compensation and sickness benefit will also increase for employees on long-term sickness leave.

Basic compensation rate for the use of motor vehicles

Pursuant to Section 157 (4) of the Labour Code, the basic compensation rate for 1 km of driving amounts to at least:

• CZK 1.30 for two-wheeled vehicles and tricycles,
• CZK 4.70 for passenger motor vehicles.

Meal allowance for business trips

For each calendar day of an inland business trip, employees are entitled to a meal allowance in the amount of

• CZK 99 to CZK 118, if the business trip lasts from 5 to 12 hours,
• CZK 151 to CZK 182, if the business trip lasts from 12 to 18 hours,
• CZK 237 to CZK 283, if the business trip lasts longer than 18 hours.

Average fuel price

As of 1 January 2022, the amount of average fuel prices changes as follows:

• CZK 37.10 per 1 litre of 95-octane gasoline,
• CZK 40.50 per 1 litre of 98-octane gasoline,
• CZK 36.10 per 1 litre of diesel fuel,
• CZK 4.10 per 1 kilowatt-hour of electricity.

We will be happy to relieve you of your worries and take over your payroll. Contact us!