The Tax Package 2021
13. 1. 2021 - Tereza Ondráčková
Before Christmas, a new tax package and changes for 2021 were approved. The changes will affect the income of each of you.
The Chamber of Deputies approved the abolition of the super-gross wage (the tax base will no longer be increased by compulsory insurance premiums for employers of 33.8%) and its replacement by two personal income tax rates of 15% and 23%. The higher rate applies to income over CZK 141.764 per month.
The basic tax rebate per taxpayer is also increased from the current CZK 2.070 to CZK 2.320 per month (from CZK 24.840 to CZK 27.840 annually).
Furthermore, the minimum wage is increased from CZK 14.600 to CZK 15.200, the minimum hourly rate is CZK 90.50 in 2021 and the minimum health insurance payment is assessed at CZK 2.052.
The maximum assessment base for social insurance is CZK 1.701.168 (48 times the average wage of CZK 35.441).
Finally, the monthly income of employees establishing participation in sickness and pension insurance increases from CZK 3.000 to CZK 3.500, which also applies to Agreement to Perform Work.