As of 1 July 2019, the “waiting period“ („karenční doba”) will be cancelled. The employees who will be temporarily unable to work will receive the salary compensation for their first three days of temporary inability to work. Currently, there is no compensation for them.
For the employers, it is expected to cause an increase of employment costs and an increase of short-term inability to work. The employers will be therefore compensated by reducing the rate of sickness insurance contributions paid by employers by 0,2%.
Currently the employers are obliged to pay 25% of the assessment base on social security contributions. As of 1 July 2019, this rate is reduced to 24,8% (of which 21,5% is on pension insurance, 2,1% on sickness insurance and 1,2% on state employment policy).
This will affect also calculation of tax base, known as super-gross salary. It is generally calculated as 134% of the gross salary. It will be calculated as 133,8% of the gross salary newly. In this respect, employment income tax will slightly decrease.
The reduction in sickness insurance premium also applies to self-employed individuals who have been contributing to sickness insurance premiums voluntarily. The minimum monthly sickness insurance premium will be reduced from CZK 138 to CZK 126.
CONTACT
Kateřina Hrůzová
Tax Manager | Czech Republic
Tel: +420 222 753 480
E-mail: katerina.hruzova@accace.com
