In 2026, a number of changes in payroll and HR administration will come into effect. This article provides an overview of the most important ones.

 

Minimum wage and minimum contributions

The minimum wage will increase from CZK 20,800 to CZK 22,400 per month (for a fixed monthly wage) or to CZK 134.40 per hour (for an agreed hourly wage) for a standard weekly working time of 40 hours. The hourly minimum wage in 2025 amounted to CZK 124.40.

This increase also applies to employees who are recipients of an invalidity pension for disability of the first, second or third degree.

The increase in the minimum wage mainly affects health insurance contributions. For employees for whom health insurance must be paid from the minimum assessment base and whose income does not reach the minimum wage, the employer is obliged to pay health insurance contributions from the minimum assessment base, i.e. from the minimum wage. The minimum health insurance contribution for such employees will therefore increase from CZK 2,808 to CZK 3,024.

The increase in the minimum wage also affects the assessment of entitlement to the tax bonus. For employees, the entitlement is assessed so that their income in a month must reach at least half of the minimum wage valid on 1 January of the relevant calendar year. Consequently, in 2026 an employee will be entitled to a tax bonus if their income in a calendar month amounts to at least CZK 11,200.

The assessment base for the payment of health insurance contributions for persons for whom the state is the payer of the insurance will increase from 1 January 2026 from CZK 15,749 to CZK 16,206.

 

Thresholds for insurance contributions on agreements

From 1 January 2026 there will be changes to the thresholds for social security and health insurance contributions on employment agreements as follows:

 

Agreement to perform work

For agreements to perform work, the decisive amount for insurance contributions is set at CZK 12,000. Social security and health insurance contributions will therefore not be paid in the case of a DPP with a monthly remuneration of up to CZK 11,999.

 

Agreement on work activity

In this case, there is no change compared with the previous year. Social security and health insurance contributions will not be paid if the monthly income does not exceed CZK 4,499. This can be used in particular for agreements on work activity or remuneration for performing the function of an executive director.

 

Meal voucher lump sum

The meal voucher lump sum – the limit for the employer’s cash contribution to employees’ meals – will increase from 1 January 2026 up to CZK 129.50 per shift (provided that the employee works at least three hours on the given day and the conditions for subsistence allowance in the context of a business trip are not met).

The amount of CZK 129.50 represents 70% of the subsistence allowance for a one-day business trip, which for 2026 is set at CZK 185. The employer may treat an amount up to this limit as tax-deductible expenses.

The lump-sum meal allowance continues to be exempt from personal income tax as well as from social security and health insurance contributions.

 

Calculation of sickness benefits

From 1 January 2026 the reduction thresholds for calculating sickness benefits will increase. This change also affects the reduction thresholds for calculating wage compensation for temporary incapacity for work or ordered quarantine.

The reduction thresholds of the average hourly earnings for calculating wage compensation for 2026 are set as follows:

• first reduction threshold for wage compensation – CZK 285.78,
• second reduction threshold for wage compensation – CZK 428.58,
• third reduction threshold for wage compensation – CZK 856.98.

 

Threshold for higher taxation of personal income

From the beginning of 2026, the threshold from which the income of individuals is taxed at the rate of 23% will also change. Tax at the rate of 15% will newly be calculated on the tax base up to three times the average wage (CZK 146,901 per month), and tax at the rate of 23% on the part of the tax base exceeding this multiple.

 

Remuneration of members of statutory bodies

In future, remuneration of members of statutory bodies (executive directors, members of the board of directors) who are Czech tax non-residents will no longer be subject to withholding tax (withholding tax is abolished), similarly to the treatment of Czech executive directors.

Their income will be subject to advance income tax (15% or 23%) through monthly tax advances applying progressive taxation. Income above CZK 146,901 per month will therefore be taxed at the 23% rate. If the annual remuneration exceeds CZK 1,762,812, the obligation to file an income tax return will arise.

 

Insurance contribution rates and reductions in contributions

If you apply reductions in insurance contributions for your employees, bear in mind that from 1 January 2026 the limits for the total assessment bases will change.

For applying the reduction, the total assessment bases of the employee are automatically monitored to check whether they do not exceed 1.5 times the average wage, or 1.15% of the average wage per hour worked.

From 2026, the employer’s contribution rate to social security for employees who work in so-called high‑risk jobs will increase from 26.8% to 27.8%.

 

Employer’s contribution to old-age savings products

From the beginning of January, Act No. 324/2025 Coll. introduces a mandatory employer contribution to old-age savings products (supplementary pension savings / pension insurance) amounting to 4% of the assessment base (gross wage).

This obligation applies to employers whose employees perform work in the third risk category and work at least three shifts per month in risky conditions. Specifically, this concerns work involving:

• vibrations,
• exposure to cold or heat,
• or dynamic physical strain (heavy manual work).

 

The employer is obliged to inform employees in writing about their right to the mandatory contribution and about how to exercise this right. The employee must apply for the mandatory contribution (and thus exercise the right). They do so by submitting a written application in which they designate their pension company.

The first payment is due by the end of the month following the end of the first reference period, which starts after the entitlement is exercised, i.e. the month in which the risky work was performed.

The contribution counts towards the overall annual limit of CZK 50,000 for contributions to old-age savings products, which is tax-exempt for the employee. It may be substituted by a voluntary employer contribution already provided in at least the same amount. For the employer, the contribution is a tax-deductible expense.

 

Mandatory quota of employees with disabilities

For the levy for failure to meet the mandatory 4% quota of employing persons with disabilities for 2025, which is payable to the Labour Office by 15 February 2026, the new calculation rules based on the actual proportion of such employees (1x, 2x or 3.5x the average wage for each missing employee) will already apply.

In addition, it will no longer be possible to meet the quota through substitute performance from related parties (this means that the quota cannot be met by placing orders with persons or companies connected with one’s own company, with the exception of integration social enterprises).

 

Flat-rate reimbursement for remote work

If employees work from home and are entitled to reimbursement of costs by reference to the statutory flat-rate amount, the flat-rate reimbursement for remote work (home office) for 2026 is CZK 4.70 for each commenced hour. This is a slight decrease compared with the rate of CZK 4.80 per hour valid until the end of 2025.

 

News in employee benefits

Changes in the exemption of non-cash benefits

From 1 January 2026, the limits up to which employee benefits (leisure and health-related) are exempt from tax and insurance contributions will also change. The limits are derived from the average wage, which for 2026 has been set at CZK 48,967.

• Leisure benefits (e.g. contributions to holidays, cultural and sports events, educational activities) have a maximum annual limit of CZK 24,483.50, i.e. half of the average wage for 2026.
• Health benefits (e.g. contributions to health care, medical services, preventive care, medical aids, the purchase of medical products on prescription, services of healthcare providers, etc.) have a maximum annual limit of CZK 48,967 (the amount of the average wage for 2026).

 

If a benefit exceeds the above limits, the excess amount is subject to tax and insurance contributions.

 

More precise definition of employee benefits

An important change in legislation now explicitly stipulates that a tax-exempt benefit must be granted in addition to wages. It must not have the character of wages, remuneration or compensation for work. This measure is intended to prevent tax avoidance through, for example, cafeteria systems or vouchers which could previously serve as “hidden wages”.

For benefits, it is essential to ensure proper record-keeping and to monitor whether the specified limits are not exceeded. Exceeding the limits could lead to tax liabilities for both the employee and the employer.

If the value of provided benefits exceeds the specified annual limits, the amount above the limit is taxed as ordinary employment income. It is therefore included in the employee’s gross wage and taxed at the standard income tax rate. In addition, social security and health insurance contributions are payable on this amount.

For employers, this would mean higher payroll costs but also the possibility to treat these expenses as tax‑deductible.

 

Holiday contribution as a leisure benefit

The holiday contribution also falls within the category of leisure employee benefits. For this benefit, a single annual limit equal to half of the average wage now applies, i.e. CZK 24,483.50 for 2026.

This limit applies to all leisure benefits combined, including the reimbursement of holidays or trips. Any contribution above this amount is already subject to tax and insurance contributions.

 

Contributions to savings products and insurance

Voluntary employer contributions to employees’ pension insurance, supplementary pension savings, life insurance and long-term investment products will continue to be exempt from tax and insurance contributions up to a total of CZK 50,000 per year per employee in 2026. Any amount above this limit is subject to tax and insurance contributions.

 

Rates of reimbursements for fuel used on business trips

The reimbursement paid by the employer to an employee who uses their own car for work will increase. The rate for 2025 was CZK 5.80, for 2026 it is CZK 5.90.

The average fuel prices for calculating travel expense allowances are adjusted as follows:

• petrol 95: CZK 34.70 per litre (decrease from CZK 35.60 per litre),
• petrol 98: CZK 39.00 per litre (decrease from CZK 40.30 per litre),
• diesel: CZK 34.10 per litre (decrease from CZK 34.30 per litre),
• electricity: CZK 7.20 per kWh (decrease from CZK 7.70 per kWh).

 

Amount of subsistence allowance on business trips

From 2026, employees in the private sector will be entitled to subsistence allowance for each day of a business trip in the following amounts:

• CZK 155 for business trips lasting 5 to 12 hours (an increase of CZK 7),
• CZK 236 for business trips lasting 12 to 18 hours (an increase of CZK 11), 
• CZK 370 for business trips lasting more than 18 hours (an increase of CZK 18). 

 

For employees in the public sector, the subsistence allowance is set as a range. For each day of a business trip, the range in 2026 is:

• CZK 155 to CZK 185 for business trips lasting 5 to 12 hours, 
• CZK 236 to CZK 284 for business trips lasting 12 to 18 hours
• CZK 370 to CZK 442 for business trips lasting more than 18 hours. 

 

Changes in work injuries

Under Government Regulation No. 322/2025 Coll., from 2026 there will be simplified procedures for dealing with work injuries on the part of the employer. The aim of the new legislation is to reduce the administrative burden not only for employers but also for labour inspection authorities and other stakeholders.

The regulation sets out in more detail the procedures to be followed by employers in fulfilling their obligations in connection with occupational accidents, whereby some actions may be carried out remotely via the portal of the State Labour Inspection Office.

 

Compensation for loss of earnings and maintenance of survivors

At the same time, there will be an increase in compensation for loss of earnings and in compensation for the maintenance costs of survivors. Under the Labour Code, such compensation is payable to employees who have suffered damage as a result of an occupational accident or occupational disease, and to survivors of employees who have died as a result of an occupational accident or occupational disease. The average earnings before the damage occurred, on which the amount of this compensation is based, will be increased by 2.6% or by CZK 240.

 

Other changes entering into force in the course of 2026

Further legislative changes will come into effect during 2026. The key ones are described in the following sections.

 

Newly introduced unified monthly employer report

This electronic report is intended to replace approximately 25 existing reports submitted by employers to various institutions. Instead of dozens of forms, companies will newly submit a single consolidated monthly report. This should significantly simplify administration and speed up the sharing of information between individual authorities (the Ministry of Labour and Social Affairs, the Czech Social Security Administration, the Labour Office of the Czech Republic, the State Labour Inspection Office, the General Financial Directorate, etc.).

 

Unified employee registry

Part of the preparation for filing the Unified Monthly Employer Report is the keeping of a unified employee registry, which was established concurrently with the registry of employers. The goal is to have an overview of all persons performing work for an employer and to make illegal employment more difficult.

 

Effective dates of the changes

The law enters into force on 1 January 2026, with the main obligations, including the obligation to submit the single monthly report, taking effect from 1 April 2026.

By that time, employers or their external payroll departments should adapt their payroll software to reflect changes in employee registration and the submission of monthly reports. The period until the end of March should also be used to verify whether all employees, for whom monthly reports will be submitted, are correctly registered with the Czech Social Security Administration. In the first phase after the law takes effect, it will be necessary to supplement a number of new data items on employers and their employees.

In the period from January to March 2026, it will be necessary to keep records of data on the employer, employees, their employment and all other data required for the subsequent completion of statutory registers and for compiling the single monthly reports for these three calendar months. These data will then have to be submitted electronically as so-called additional reports.

During this period, employers will continue to register new employees, deregister them and report changes to the Czech Social Security Administration in the same way as before (under the Sickness Insurance Act).

For the first three calendar months (January to March 2026), employers will not submit the single monthly reports and will also not submit the overview of premiums.

 

Payment of insurance contributions in the interim period

The obligation to pay insurance contributions for social security and the contribution to state employment policy remains in force, with the same deadline as before, i.e. from the 1st to the 20th day of the calendar month following the month for which the contributions are paid.

Any reductions in insurance contributions will be reflected by employers in the amount of contributions paid and will be reported retrospectively in the subsequently filed single monthly reports.

Liabilities in the form of advance payments of tax on employment income must, where applicable, also continue to be met towards the tax authorities during this period.

 

Deadline for submitting supplementary data

Between 1 and 30 April 2026, employers will have to submit supplementary data on themselves and on their existing employees participating in sickness insurance, who will be missing in the records kept under the “unified monthly employer report” Act for the first quarter of 2026. They will therefore have to register in the employee register all employees for whom, under the sickness insurance regulations, there was no obligation to register with the Czech Social Security Administration by 31 March 2026 (such employees did not previously have to be registered in the insured persons’ register), for example employees in minor-scale employment.

 

Period from 1 April to 30 June 2026

Using the data that employers have kept for the purposes of JMHZ for the first three calendar months of 2026, they will have to submit unified monthly employer report for these months retrospectively to the Czech Social Security Administration (in electronic form), separately for each of the calendar months concerned.

From 1 April 2026, employees who newly take up employment will have to be registered in the register via the new electronic reporting format.

For Czech citizens, registration must be carried out no later than eight days after they commence employment.

For foreign employees, registration must be carried out no later than before the moment they start work, and no earlier than eight days before the expected commencement of employment.

The unified monthly employer report for April 2026 will be submitted in the standard way, i.e. between 1 and 20 May 2026. Employers will at the same time pay social security contributions and the contribution to state employment policy as before.

Until 30 June 2026, employers must register employees with the Czech Social Security Administration within eight days of their starting work. From 1 July 2026 this procedure will be tightened – registration must be carried out before the employee starts work, at the earliest eight days in advance.

 

Period from 1 July 2026

From 1 July 2026, for registering new employees in the employee register it will be necessary to distinguish whether the person is a Czech citizen or a foreign employee.

If the person is a Czech citizen, employers will be able to choose between two registration methods. In both cases, it will be necessary to register the employee no later than before the moment they start work, but not earlier than eight days before the expected commencement of employment.

The two registration methods are:

• sending all required data at once (single-step registration),
• sending a specified set of data (name, surname, birth surname, birth number, place of birth, nationality of the employee, expected commencement date of employment and the employer’s variable symbol) before the expected commencement of employment and sending the remaining data within eight days after the actual commencement of work (two-step registration).

 

A foreign employee may only be registered by sending all the required data at once, i.e. in a single step, no earlier than eight days before the expected commencement of employment and no later than before the moment they start work.

If the employee does not eventually start work, the employer must notify the Czech Social Security Administration of this fact no later than eight days after the expected commencement date.

Agreements not previously registered will be registered from 1 April 2026 exclusively electronically via REGZEC.