Taxation of income from employment
Child tax credits for a second, third and subsequent child are to be increased. The amendment approved by the Chamber of Deputies is yet to be approved by the Senate and the President.
- The tax credit for a first child will remain the same, i.e. CZK 13,404 per year (CZK 1,117 per month).
- The tax credit for a second child will increase from the current amount of CZK 17,004 to CZK 19,404 per year (CZK 1,617 per month); the tax credits for a third and subsequent child will be increased by another CZK 300 per month, i.e. from the current CZK 20,604 to CZK 24,204 per year (CZK 2,017 per month).
- A new form of Taxpayer’s Statement (Prohlášení poplatníka) has been effective since January 2017 (template no. 25).
- Gross wage on which solidarity tax is levied has been increased from the current level of CZK 108,024 to CZK 112,928.
- Minimum wage has been increased by CZK 1,100 since January 2017, i.e. to CZK 11,000 per month.
- Lower rates of minimum wage have been abolished for recipients of a disability pension. As a result, the recipients must receive a minimum wage of CZK 11,000 with effect from January 2017.
- The amount paid to recipients of a disability pension will also increase to CZK 9,300 per month.
- In addition, the basic hourly rate will be adjusted from the current CZK 58.70 to CZK 66.00.
Changes in social security
- The maximum assessment base for social security applicable in 2016 was CZK 1,296,288. The maximum assessment base for 2017 has been increased to CZK 1,355,136.
- A new social security benefit is expected to be approved – paternal postnatal care. This benefit would be paid to each insured male caring for a child whose father he is, provided that he pays social security contributions.
- The paternal postnatal care leave may be taken within 6 weeks of the child’s date of birth or the date of placement in care and may be taken for up to 7 working days;
- The parental postnatal care benefit for a calendar day is 70% of the daily assessment basis. The time taken as parental postnatal care leave is considered excluded time for the purposes of pension insurance registration documents.
- With effect from 1 January 2017, the requirement of common household has been changed in respect of claiming the family member care benefit. The group of relatives entitled to the care benefit has been extended and the care benefit will also be paid in cases when the common household requirement is not met.
- As a result, the family member care benefit will also be provided to employees not living in a common household with their parents, grandparents, children, grandchildren and great-grandchildren. However, the benefit is not available for siblings, father-in-law and mother-in-law.
Changes in health insurance
- Since January 2017, the minimum assessment base has been increased to the minimum wage amount.
- The new assessment base is CZK 11,000 and the monthly premium derived from the base is CZK 1,485 (CZK 1,337 in 2016).
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