Changes in employee benefits-limits
A proposal to introduce a separate limit for the exemption of medical employee benefits from personal income tax was approved, which entered into force on January 1, 2025. This limit is set up to the average salary for the given year, i.e., CZK 46,557 for 2025.
A separate limit applies to the purchase of medical devices on prescription, as well as to health, medical, and hygiene services and goods from medical institutions. These benefits will continue to be covered by the employer's non-tax costs, while remaining tax-and insurance-free on the employee's side. This change responds to the demands of employers and unions, who consider health benefits to be the most desirable and beneficial for employees.
Other non-monetary benefits, such as education, sports, and cultural activities, remain subject to the total limit of half the average salary (CZK 23,279 for 2025), which was introduced last year.
The amendment provides employers with greater flexibility in providing tax-advantaged benefits, but also brings greater administrative complexity in monitoring various limits. We would like to remind you that benefits cannot be provided without proper setting in the internal guidelines.