Czech Republic

Changes in the calculation of wage deductions

The change in the calculation of legal wage deductions occurred already in the processing of monthly wages for June 2019. This concerns an amendment to Government Regulation No. 91/2019 Coll. amending Government Regulation No. 595/2006 Coll. on the method used for calculating the base amount that cannot be deducted from the monthly wage in the event of a distraint ruling and on establishing the amount at which wages are subject to deductions without limitations (regulation on non-distrainable amounts).

Also read our recent newsletter on Payroll Deductions

The amount above which the remainder of the net wage calculated in accordance with the first sentence of Section 279 (1) of the Code of Civil Procedure is reduced without limit is twice the sum of the individual’s subsistence minimum and the amount of normative housing costs for one person.

Therefore, the fundamental change is that the word “sum” is replaced by “double the sum” for the method of calculation (regulation on non-distrainable amounts).

This means that in the case of all deductions from wages in the period from 1 January 2019 to 31 May 2019, the amount above which the wage is distrainable without limitation in the amount of CZK 9,643 becomes CZK 19,286 as of 1 June 2019.

  • The amount above which the wage is distrainable without limitation in the period from 1 January 2019 to 31 May 2019
    • = subsistence minimum + housing expenses
    • CZK 3,410 + CZK 6,233 = CZK 9,643
  • The amount above which the wage is distrainable without limitation beginning 1 June 2019
    • = twice the sum of the subsistence level + housing costs
    • CZK 9,643 x 2 = CZK 19,286
  • Highest thirds from 1 January 2019 to 31 May 2019
    • CZK 9,643: 3 = CZK 3,214
  • Highest thirds from 1 June 2019
    • CZK 19,286: 3 = CZK 6,428
  • The non-distrainable amount per person obliged is 2/3 of the amount of CZK 9,643, i.e. CZK 6,428.67
  • The non-distrainable amount for each person for whom the debtor is obliged to provide maintenance (hereinafter only the separate non-distrainable amount) is one-quarter of CZK 6,428.67, i.e. CZK 1,607.17.

Examples of non-distrainable amounts:

  • A single childless debtor will have a basic non-distrainable amount of CZK 6,428.67.
  • A married debtor with two children and a wife will have the base non-distrainable amount.
    • CZK 6,428.67 + CZK 1,607.17 + CZK 1,607.17 + CZK 1, 607.17 = CZK 11,250

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