Rate changes from January 1, 2025: Are you prepared?
The new year will bring important changes to the world of HR. Whether it’s the minimum wage, meal allowances, travel reimbursements, or limits for deductions in agreements – here’s an overview of the most important ones.
1. Minimum wage: New calculation, new amount
From January 2025, the minimum wage will be CZK 20,800/month or CZK 124.40/hour . This corresponds to the new calculation method – 42.2% of the average wage in the national economy. The aim is for the minimum wage to correspond to the development of the average wage in the national economy.
2. Agreements: New limits for levies
If you employ a “contractor”, the limits for insurance premium payment will be as follows:
- Work performance agreement (DPP): up to 11,500 CZK.
- Employment agreement (EPA): up to 4,500 CZK.
Important change: the notified agreements regime will be abolished (i.e. the current system of DPP reporting and DPP income remains valid from 1 July 2024).
3. Compensation and fuel rates for work trips
If employees use a personal car for work , the compensation provided by the employer per 1 km will increase to CZK 5.80 (previously CZK 5.60).
The average fuel prices for calculating travel reimbursements are adjusted as follows:
- Gasoline 95: 35.80 CZK/l (down from 38.20 CZK/l)
- Gasoline 98: 40.50 CZK/l (down from 42.60 CZK/l)
- Diesel: 34.70 CZK/l (down from 38.70 CZK/l)
- Electricity: 7.70 CZK/kWh (unchanged)
4. Increase in meal allowance during business trips
Employees sent on business trips can look forward to higher meal allowances:
Private sector (Section 163 of the Labor Code):
- 5–12 hours: 148 CZK
- 12–6 p.m.: 225 CZK
- Over 6 pm: 353 CZK
Public sector (Section 176 of the Civil Code):
- 5–12 hours: 148–177 CZK
- 12–6 p.m.: 225–271 CZK
- Over 6 pm: 353–422 CZK
5. Remote work: Increase in flat-rate compensation
If employees work from home and have agreed to provide reimbursement of costs by reference to the statutory flat rate, this amount increases to 4.80 CZK/hour . Even though this is a small increase, employees will certainly appreciate it.
6. Meal voucher lump sum: Tax optimization
The meal voucher flat rate remains a popular option. As of January 1, 2025, its tax-optimal amount is CZK 123.90 per shift.
7. Mandatory contribution for disabled people: New contribution limits
If you fulfill your obligation to employ people with disabilities (PWDs) through financial compensation, the amount of this amount now depends on the degree of fulfillment of the obligation to employ a specified number of PWD employees:
- 3% or more: levy equal to 1 time the average wage.
- 1–3%: levy equal to 2 times the average wage.
- Less than 1%: a contribution of 3.5 times the average wage.
8. Employee self-scheduling: More flexibility for employees
A major change in the field of work organization: if you agree with the employee in writing, the employee can schedule his or her own working hours . Be careful about setting potential limits correctly and the employer’s obligation to keep records of working hours in this case as well.⏳
Be prepared
Although the flexi amendment to the Labor Code will not be approved and effective until spring 2025, the changes effective from January 1st bring new obligations and opportunities for better planning and optimization. Review your internal guidelines, check contracts, and ensure your employees are informed.
