Summary

The Czech Republic operates a comprehensive social security system which provides a range of old age, invalidity, unemployment and other social benefits, including family allowances and income guarantees. There is a separate Health insurance scheme which covers sickness, maternity and attendance benefits. Entitlement to benefits generally derives from and individual’s contribution history, although some benefits arise due to residence in the Czech Republic.

Current market practice is generally to try to avoid becoming liable to Czech social security due to its high cost. 

Details

Contributions

Employer contributions are 24.8% of annual income up to approximately $115,000, plus 9% health insurance (on total income), and employee contributions are approximately 7.1% on the same capped level of income, plus 4.5% health insurance contributions (uncapped).

Treaties

The Czech Republic has social security agreements with all European Economic Area countries and 24 non-EEA countries, including the US, Canada, Brazil, Australia, Turkey, Japan and India. These agreements generally determine which country has the right the levy social security contributions, has the obligation to provide benefits, and prevent social security being levied twice on the same income. Most inbounds expatriates to the Czech Republic therefore continue to pay home country social security contributions.

There is no UK agreement but moves between the two countries are in general covered by the UK/EU Trade and Cooperation agreement, although this limits home country coverage to two years, without the possibility of extension Special rules apply to individuals working in the Czech Republic and other EEA countries (plus the UK) on a regular basis.

Exemptions

Health-related benefits of up to $2500 per year have become exempt from social security and health insurance contributions. Aside from these, benefits in kind are usually treated as income subject to social security, and the statutory limits for expense reimbursements are low. The Czech Republic generally uses a system of tax credits rather than income reductions which do not have an impact of the amount of social security due.

Administration

Currently, employer and employee contributions are paid by the 20^th day of the following calendar month to the social security ministry and, for health insurance contributions, one of the 7 public health insurance providers (if locally employed, or Czech citizen or registered resident) or to a provider chosen by the individual if not. Contributions to both are calculated as part of the monthly payroll process.

However, a new, unified electronic monthly report for employers, which is mandatory and aims to reduce bureaucracy, has been introduced, with the first quarterly reports due by June 30, 2026. 

Benefits

The Czech state pension is the most significant benefit, and this is calculated by reference to the number of years of contributions in the Czech Republic (or other countries which have social security agreements with CR). Claims for health benefits are made directly to the insurer to which contributions were made (one of the 7 companies offering state health insurance if state contributions were made, or the private insurer if not).

Other

Because of the high cost of social security, maintaining home employment and using a certificate of coverage to retain home country contributions is by far the most common practice for expatriates inbound to the Czech Republic. 

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