Starting January, Czech employees will see a significant boost in their workplace benefits package, with tax-free leisure benefits increasing by nearly 1,300 CZK annually. The new annual limit for tax-free leisure benefits will rise from 21,984 CZK to 23,278 CZK.
These tax-advantaged benefits can be used for various purposes, including cafeteria systems, benefit cards, theater subscriptions, sports passes, zoo memberships, and vacation allowances for both employees and their family members. The cap is set at half the average wage, which the government has established at 46,557 CZK for the coming year.
In a significant development, health-related benefits will now be separated from leisure benefits, addressing a previous system where both were combined, with non-healthcare benefits typically being preferred. The Ministry of Finance spokesperson, Gabriela Krušinová, confirmed that health benefits will now enjoy a higher tax-free limit, matching the full average wage of 46,557 CZK.
The health benefits package covers a wide range of services, including vitamins, vaccinations, rehabilitation, psychological counseling, and dental care. This expansion reflects a growing emphasis on employee wellness and preventive healthcare.
Public sector employees will also see changes in their Cultural and Social Welfare Fund benefits. While previously half of the fund (which comprises 1% of wage funds) had to be allocated to retirement savings, new legislation currently in the Senate will provide more flexibility. In workplaces with union representation, benefit allocation will be determined through collective bargaining, while other employers will have discretion in fund distribution.