How we calculate Czech net pay

The calculator follows the payroll of an employee in a standard employment relationship for the whole year, with one employer and the same pay every month. The rules come from the Income Tax Act, the social and health insurance contribution acts, the government regulations on the average wage and the minimum wage rules — see data sources.

Social insurance

Employees pay 7.1% of gross pay (6.5% pension and 0.6% sickness insurance), employers 24.8%. Contributions are rounded up to the crown and are due only up to the maximum assessment base of 48 times the average wage: 2,350,416 Kč in 2026 and 2,234,736 Kč in 2025. Once it is reached, no social insurance is due for the rest of the year.

Health insurance

The contribution is 13.5% of gross pay, rounded up to the crown; the employee pays a third (4.5%) and the employer two thirds. There is no ceiling. The minimum base is the minimum wage (22,400 Kč); below it the employee pays on the difference.

Tax advance

The base is gross pay rounded up to the next hundred crowns. The advance is 15%, and 23% on the part of the base above three times the average wage (146,901 Kč a month, 139,671 Kč in 2025); it is rounded up to the crown. With a signed declaration the taxpayer credit of 2,570 Kč a month is deducted.

Child benefit and bonus

1,267 Kč a month for the first child, 1,860 Kč for the second and 2,320 Kč for the third and each further child. Whatever cannot be set against the advance is paid as a tax bonus, if it is at least 50 Kč and the month's pay reaches half the minimum wage. The calculator assumes one parent claims the benefit for the whole year.

Annual settlement

After the year, tax is worked out on the annual base rounded down to the hundred: 15% up to 36 times the average wage (1,762,812 Kč) and 23% above, minus the annual credits and benefits. The difference from the advances comes only from rounding, or from pay that varies during the year.

Employer cost

Employers pay 24.8% social insurance (21.5% pension, 2.1% sickness and 1.2% employment policy) up to the same ceiling and 9% health insurance. The statutory work-injury liability insurance (from 2.8‰) is not included.

Tests

Not yet included

• Agreements to perform work (DPP, DPČ) and several jobs at once.
• Spouse credit, disability, student status and deductions (mortgage interest, pension savings, donations) applied in the annual settlement.
• Pay that varies during the year, bonuses, sick pay and absences.

Estimates only. Not tax, legal or financial advice.