Czech Republic: Personal Taxation
Social Security Taxes
Social Security contributions are paid by the employee and the employer. These are deducted from salary – 45% of an employee’s salary, broken down by 34% paid by the employer and 11% by the employee. The contributions go towards pension and sickness, unemployment and medical insurances, with the largest proportion of the contributions being for pension provision (19.5% of the employer’s contribution and 6.5% of the employee’s contribution).
For higher income earners, a new "social tax" has been introduced from 1 January 2013. Under the new rules, income exceeding CZK100,000 per month an additional 7% is payable. The "social tax" will apply until 31 December 2015.