Guide
How net salary is calculated
Social security, health insurance, and an income tax advance come off the gross salary. Tax credits and allowances lower the tax, and child tax benefits can create a tax bonus that's added to your pay.
1. Insurance
In the Czech Republic, employees pay 7.1% social security (6.5% pension and 0.6% sickness) and 4.5% health insurance, each rounded up to the nearest koruna. In Slovakia, employees pay 9.4% social security (1.4% sickness, 4% old-age, 3% disability, and 1% unemployment) and 5% health insurance.
2. Tax advance
In the Czech Republic, the base is the gross salary rounded up to the nearest hundred. The tax is 15%, and 23% on the part above CZK 146,901 a month. In Slovakia, the base is the gross salary minus insurance and the tax-free allowance. The tax is 19% up to EUR 3,665.28 a month, 25% up to EUR 5,029.10, 30% up to EUR 6,250.86, and 35% above that.
3. Tax credits and allowances
In the Czech Republic, the basic taxpayer credit is CZK 2,570 a month. For children, you deduct CZK 1,267 for the first, CZK 1,860 for the second, and CZK 2,320 for the third and each additional child. The amount doubles for a child with a ZTP/P card. In Slovakia, the tax-free allowance is EUR 497.23 a month and goes down once the tax base exceeds EUR 2,173.59.
4. Tax bonus
In the Czech Republic, if the child credit is higher than the tax, your employer pays you the difference. You need a gross salary of at least CZK 11,200, half the minimum wage, and the bonus must be at least CZK 50. In Slovakia, the child tax bonus is EUR 100 a month for each child under 15 and EUR 50 from 15 to 18. If it's higher than the tax advance, your employer pays out the difference.