Payroll in Czechia 2026: contributions, income tax and JMHZ

In Czechia the employer withholds 7.1% social insurance, 4.5% health insurance and a monthly income tax advance of 15% (23% on high pay, minus the CZK 2,570 taxpayer credit) from each salary. On top, the employer pays 24.8% social and 9% health insurance, about a third of gross pay, and settles everything by the 20th of the following month.

Payroll in Czechia at a glance

Social security contributions

Social insurance (sociální pojištění) goes to the Czech Social Security Administration (ČSSZ) and covers pensions, sickness benefits and the state employment policy. Public health insurance (zdravotní pojištění) goes to the health insurer the employee has chosen. Both are calculated on gross pay.

Ceiling. The 2026 maximum assessment base for social insurance is 48 times the average wage of CZK 48,967, so CZK 2,350,416 a year. Pay above it carries no social insurance. Health insurance has no maximum assessment base.

Health insurance mechanics. The employer calculates 13.5% of the employee's assessment base, rounds it up to the whole koruna, deducts one third from the salary (4.5%) and pays the remaining two thirds (9%) itself. For employees in an employment relationship the minimum wage is the minimum assessment base, so the minimum monthly health insurance in 2026 is CZK 3,024.

Higher employer rates. Employers pay 27.8% social insurance for employees in risky jobs (28.8% in 2027 and 29.8% from 2028) and 29.8% for paramedics and fire-brigade members.

Small jobs. An employee takes part in sickness and pension insurance in a month when pay reaches CZK 4,500, and a person working under an agreement to perform a job (DPP) once pay from it reaches CZK 12,000 in 2026.

Income tax on salaries

Employment income is taxed through monthly advances that the employer deducts from pay. The tax base is the employment income itself, the gross pay: the employee's contributions do not reduce it and no expenses are deducted.

Taxpayer credit. Every taxpayer can claim the sleva na poplatníka of CZK 30,840 a year. An employee who signs the tax declaration (prohlášení poplatníka, the "pink form") with one employer receives it monthly as CZK 2,570, which reduces the advance. Child tax credits (CZK 15,204 for the first child, CZK 22,320 for the second and CZK 27,840 for each further child a year in 2025) and other credits are claimed in the same way.

Annual reconciliation. After the year an employee who had income only from employment can ask the last employer in writing, at the latest by 15 February, to carry out the annual reconciliation of advances (roční zúčtování); otherwise they file their own return. The employer also files the annual statement of withheld tax (vyúčtování daně z příjmů ze závislé činnosti): for 2025 by 2 March 2026 on paper or 20 March 2026 electronically.

Czechia has no regional or municipal income tax on salaries.

Minimum wage, working time and mandatory pay

Minimum wage. From 1 January 2026 to 31 December 2026 the minimum wage for a 40-hour working week is CZK 22,400 a month or CZK 134.40 an hour, an increase of CZK 1,600 on 2025 (announcement of the Ministry of Labour and Social Affairs No. 356/2025 Coll.). Employees who agree to a shorter working week receive it in proportion: at 20 hours a week the monthly minimum is CZK 11,200.

Top-up to the minimum wage. If pay in a month does not reach the minimum wage, the employer pays the difference as a supplement.

Thirteenth salary. Czech law does not require a 13th or 14th salary; where they exist they come from the employment contract or a collective agreement.

Monthly payroll calendar and filings

1. 1Register as an employer with ČSSZ and the Financial Administration. Since 1 April 2026 new employees are registered with ČSSZ through the JMHZ system: at the latest before they start work, and for Czech citizens the basic data before the start with the remaining details within 8 days. Notify the employee's health insurer of the start of employment within 8 days.
2. 2Collect the declaration (prohlášení) if the employee wants the monthly taxpayer credit; an employee can sign it with only one employer at a time.
3. 3Pay social insurance and health insurance for each month between the 1st and the 20th of the following month.
4. 4File the unified monthly employer report (JMHZ) with ČSSZ between the 1st and the 20th of the following month. It became mandatory with the April 2026 period (due 20 May 2026) and replaces the former monthly overview of social insurance (PVPOJ) and the registration forms; the missing January to March 2026 reports were filed between 1 April and 30 June 2026. Health insurers are not part of JMHZ, so their monthly overviews continue unchanged.
5. 5Pay the income tax advances withheld in a month to the tax office by the 20th of the following month.
6. 6After the year, carry out the annual reconciliation for employees who asked by 15 February and file the annual statement of withheld tax.

Worked example: CZK 50,000 a month

A single employee without children earns CZK 50,000 gross a month, has signed the tax declaration and works full time.

The 23% rate would apply only to the part of monthly pay above CZK 146,901, and social insurance would stop once the year's pay reached CZK 2,350,416.

Common mistakes

1. 1Granting the taxpayer credit twice: the declaration can be signed with only one employer for the same period.
2. 2Reducing the tax base by the employee's contributions. The tax base is gross pay.
3. 3Splitting health insurance wrongly: calculate 13.5% first, round it up, then deduct one third.
4. 4Ignoring the minimum health insurance base of CZK 22,400 for employees with lower pay.
5. 5Continuing social insurance after pay passes CZK 2,350,416 in the year, or capping health insurance, which has no ceiling.
6. 6Missing the 20th: contributions, tax advances and the JMHZ report share the same deadline.
7. 7Forgetting DPP and small jobs that cross the CZK 12,000 or CZK 4,500 thresholds and become insured.

How Clientlly helps

Clientlly does not ship a built-in payroll profile for Czechia. An administrator enters the Czech payroll rates once in the payroll tax settings: the income-tax bands, the personal allowance, the employee and employer contribution rates and the minimum wage. Clientlly then calculates gross to net and the employer contributions and produces payslips. Check the Czech specifics for each employee: the signed tax declaration and credits, the health insurance minimum base and the annual social insurance ceiling.

Alongside payroll, the human resources module handles leave requests and approvals with a leave calendar and keeps HR documents, and attendance and time tracking records working hours and overtime. For the wider month-end routine, see our month-end close checklist.