Sickness insurance paid by the employee

At a glance

• The government introduced a fiscal reform package.
• This reintroduced sickness insurance which is paid by the employee at a rate of 0.6% of the monthly assessment base (gross wages). Previously, sickness insurance has only been paid by the employer.
• As of January 2024, the total social security contributions for the employee thus increased to 7.1% (instead of 6.5%).
• The limit of tax-free employee’s benefits has changed to 50% of the average wage in comparison to the current annual limit of CZK20,000.
• Several tax discounts have been removed or limited (eg ‘child placement’ discount, student discount and spouse discount).