Up until 1.1.2021, the income tax had been deducted from the super gross salary. What do the terms super gross, gross, and net salary mean?
Super gross salary
The super gross salary is the employee’s gross salary plus the percentage of social security and health insurance payments that are paid by the employer. This means:
- 25% for the social security insurance;
- 9% for health insurance.
The difference between the super gross salary and net salary (the actual amount of money the employee receives) is with the average Czech salary over 40%.
The gross salary is the amount you will agree on with your employer/employee. The reason for the gross salary being used and not the net salary is that different people may have different bonuses and tax discounts, which can influence the final calculations.
The net salary is the actual amount the employee will receive. It is counted from the gross salary in the following way:
- 6,5% for the social security insurance;
- 4,5% for the health insurance;
- 15% for the employee income tax (15% from the gross salary)
From the income tax, we can deduct tax discounts. All employees can claim the basic tax discount, which for the full year 2023 reached 30 840 CZK. Additional discounts, such as the student tax discount, the disability discount, or the child discount (only one parent can claim these) can also be deducted from the final income tax amount.
Since counting the final net salary amount can be complicated, there are net salary calculators available online that will do the counting for you.
Changes in 2021
The Czech super-gross salary and solidarity tax were cancelled beginning 1.1.2021. As employers don't need to pay additional income tax for employees in super-gross salary, it might affect employees' net gross Czech Republic salary, and employees can earn higher clean salaries.
Czech employees with high wages always paid solidarity tax. The solidarity tax has been cancelled from 1.1.2021 but tax rates have changed, as follows:
- Tax rate up to 161 296 CZK monthly gross salary is 15%
- Tax rate over 161 296 CZK monthly gross salary is 23%
The minimum gross salary in the Czech Republic is 17 300 CZK and the average gross salary is 41 265 CZK in 2023.
You can check all taxes, contributions, and clean salaries on our Net salary calculator