We would like to inform you about one of the changes in the Labour Code and we are also providing details on the planned tax package – the abolition of the “super-gross” wage.
An amendment to the Labour Code is also set to take effect in 2021, with one of the changes involving the introduction of a “shared” job.
The employer may, by means of a written agreement, arrange a shared job between two or more employees with shorter working hours.
The agreement must include detailed terms of the sharing, such as:
- How employees will transfer work to one other;
- How the employer will assign tasks;
- How far in advance employees will submit a written schedule, etc.
As part of a shared job, employees schedule their working hours in such a way that the sum of the workloads in one job does not exceed the set weekly working hours. The schedule must be prepared in such a way that employees fulfil their average weekly workload for the compensation period, which is a maximum of four weeks.
Employees must also provide the employer with a written schedule of their working hours at least one week in advance. If the schedule is not submitted by the employees themselves, the employer is obliged to create the schedule on his own immediately. Employees are to notify the employer of changes to the schedule in writing at least two days in advance, unless they agree on another deadline.
The shared post may be terminated by agreement on a date agreed by the parties.
The shared post can also be terminated in writing without giving a reason with a 15-day notice period.
Repeal of the “super-gross” wage
We would also like to provide information on planned changes in the area of personal income tax from the “tax package”, namely the abolition of the super-gross wage.
At present, employees pay income tax of 15% of the super-gross salary, which consists of the employee’s gross salary and the employer’s social and health insurance contributions.
In total, therefore, the insurance paid by the employer increases the gross wage by 33.8%.
The Chamber of Deputies approved the abolition of the super-gross wage and employees will thus pay income tax of 15% only on the gross wage, without the current increase. The second proposed rate is a 23% tax on income in excess of four times the average wage.
Tax deductions per taxpayer
Another planned change that has not yet been finally approved is an increase in the tax deduction per taxpayer. In 2020, an employee is entitled to a discount of CZK 24,840 per year. According to the proposal that is to be adopted, the taxpayer’s discount should be equal to the average gross wage for the previous year. For the year 2021, the deduction per taxpayer should be CZK 34,125. Changes to the tax package at this time must be approved by the Senate and signed by the President.
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