Net Salary Calculator 2024

The minimum gross salary in 2024 is CZK 18,900 CZK. The minimum net salary in the Czech Republic after deducting employee contributions for social security (7.1% of gross salary), health insurance (4.5 % of gross salary), and income tax, the net salary is CZK 16,442.

On minimum salary, the employee doesn't pay income tax. Because a tax discount of CZK 2,570 covers the employee tax amount.

The average gross salary in 2024 is CZK 43,967. The average net salary in the Czech Republic after deducting employee contributions for social security(7.1% of gross salary), health insurance( 4.5 % of gross salary), and employee income tax( 15% of gross salary), the average net salary is CZK 34, 841.

On the average salary, the employee pays partly income tax. Because a tax discount of CZK 2,570 covers part of the employee income tax amount.

Employee tax rates remain 15% or 23% depending on total income, but include the following changes in 2024.

• The coefficient to determine who pays the higher Czech tax rate of 23% changes from average gross salary x 4 to x 3.

• Example: average monthly gross salary (CZK 43,967) x 3 = CZK 131,901. This is the income threshold on the progressive tax rate. Earn anything over this amount, and you pay at the tax rate of 23%.

Income tax, social security, and health insurance are paid to Czech authorities by full-time employers, and employees receive a net salary. Further, both the employer and the employee pay into social security and health insurance.

For the employee, this comes out of their gross salary. Employees pay 7.1% of gross income into social security, and 4.5% into health insurance. The employer then pays from your gross salary 24.8% into social security, which distributes as 21.5% to retirement insurance, 2.1% sickness insurance, and 1.2% unemployment insurance. Another 9% of the employee’s gross annual then goes into health insurance.

“Tax discounts” are any deductibles which reduce a taxpayer’s total income tax. Take for examples the standard taxpayers’ discount, life insurance payments, mortgage interest rates, and claiming a spouse with lower income. Each of these events reduces the total taxable net income on the tax return. A tax credit on the other hand is a refund amount from the financial office depending on your income. One of the most common tax credits is claiming a child under 21 years old. Taxpayers may also use tax credits in replace of tax discounts when filing.

The tax credit is a payment refund from the financial tax office depending on your income. If your income tax is higher than your tax discount, then a tax credit can be used as a tax discount for a tax deduction. The tax credit is applied for kids under 21 years old and only one parent can claim the child tax credit.