A clear summary of the most important changes was published on the epravo.cz website by Lenka Zalabáková, Payroll Supervisor at ASB Group. She especially points out that the so called “Stabilization Package” -- Act No. 500/2012 Coll., on amendment to tax, insurance and other acts in connection with reducing the budget deficit -- came into effect just before the end of 2012. This act implemented the so called solidarity tax and cancelled the cap for general health insurance premiums.
The 7% solidarity tax applies to higher income payers, respectively to the part of their annual income that exceeds 48 times the average salary (CZK 1,242,432). Employers will have to pay the advance on the solidarity tax already in the corresponding month on behalf of employees whose monthly income exceeds CZK 103,536 (four times the average salary). High income employees (over CZK 150,822 per month) will also be affected by the cancellation of the cap on public health insurance premiums as now they will have to pay health insurance on the basis of their full earnings.
Other significant legislative changes associated with wages in 2013 include:
- cancellation of the basic taxpayer tax discount for old-age pensioners,
- increasing of the withholding tax rate for non-residents,
- 2nd and 3rd pillars of the pension reforms,
- cancellation of the decreased rate of the minimum wage,
- the average wage and maximum tax assessment bases for social and health insurance,
- wage compensation in the event of incapacity for work,
- new rates for travel expense reimbursements,
- new tax administration structure,
- changes in distraint proceedings.
You can read Lenka Zalabáková’s full article here: Legislative changes in wages in 2013.