Dear Business Partners,

We would like to inform you about key legislative changes taking effect in the Czech Republic as of January 2026, which impact employee remuneration, taxation, and health and social insurance. FIKU closely monitors these developments, evaluates their implications, and ensures correct mplementation within the scope of our mandate so that your companies remain fully compliant with Czech legal requirements. Below you will find an overview of the main changes.

KEY CHANGES FOR EMPLOYERS IN 2026 – SUMMARY

1. Minimum wage increases to CZK 22,400 (monthly) and CZK 134.40/hour.
2. Domestic per diem allowances: new rates CZK 155, CZK 236, and CZK 370 depending on the
length of the business trip.
3. New DPP limit for social and health insurance: CZK 12,000/month; DPČ remains CZK 4,500.
4. New threshold for the 23% income tax rate: CZK 1,762,812/year (CZK 146,901/month).
5. Employee benefits: health-related benefits exempt up to the average wage (CZK 48,967), other
leisure benefits up to half of the average wage.
6. Introduction of the Unified Monthly Employer Report (JMHZ) – mandatory electronic filing by the
20th day of the following month (mandatory from April 2026).
7. Minimum health insurance contribution increases to CZK 3,024/month.
8. VAT and excise tax: further digitalisation, reciprocity principle for foreign VAT refunds, higher
rates on tobacco and alcohol.