Among the benefits perceived by employees as the most valuable are especially health benefits. However, from 2024, the exemption of leisure benefits from employment income tax has been limited to half of the average wage per year. Such a limitation is undesirable for most companies.
The introduction of the cap was most problematic for health in particular. Most companies provided this benefit. This includes, for example, vaccinating employees against influenza, providing medicines and immunity support products during epidemics, providing medical devices and many others.
It is therefore proposed to modify the current exemption of non-monetary benefits provided by the employer to employees listed in Section 6(9)(d) of the ITA. This provision is proposed to be divided into health benefits, which would be exempt up to the amount of the average wage for the tax period (for 2025, the limit is 46.557 CZK) and the remaining benefits that are currently in Section 6(9)(d) of the ITA, where the exemption limitation would continue to apply up to half of the average wage (for 2025, the limit would be 23,278 CZK). Both limits should be monitored separately.
Companies have become accustomed to looking after the health of their employees and the state should continue to incentivise them to do so. Therefore, the state promises that if companies take care of the health of their employees, the state will save significantly both in the area of health care and sick pay.
This change can be found as an amendment to the Employment Act with an expected effective date of 1 January 2025. It is likely that this amendment will be adopted by the end of the year.
Autor: Jiří Jandečka
The introduction of the cap was most problematic for health in particular. Most companies provided this benefit. This includes, for example, vaccinating employees against influenza, providing medicines and immunity support products during epidemics, providing medical devices and many others.
It is therefore proposed to modify the current exemption of non-monetary benefits provided by the employer to employees listed in Section 6(9)(d) of the ITA. This provision is proposed to be divided into health benefits, which would be exempt up to the amount of the average wage for the tax period (for 2025, the limit is 46.557 CZK) and the remaining benefits that are currently in Section 6(9)(d) of the ITA, where the exemption limitation would continue to apply up to half of the average wage (for 2025, the limit would be 23,278 CZK). Both limits should be monitored separately.
Companies have become accustomed to looking after the health of their employees and the state should continue to incentivise them to do so. Therefore, the state promises that if companies take care of the health of their employees, the state will save significantly both in the area of health care and sick pay.
This change can be found as an amendment to the Employment Act with an expected effective date of 1 January 2025. It is likely that this amendment will be adopted by the end of the year.
Autor: Jiří Jandečka