Which employees qualify?

The employee meets these conditions simultaneously (points 1, 2 and 3):

  1. a standard employment contract (not DPP or DPČ agreements),
  2. working hours of 8–30 hours per week,
  3. and is either:
    • over 55,
    • caring for a child under 10,
    • studying (must be full-time education, but there is no age limit of 26),
    • registered as a jobseeker undergoing retraining in the past 12 months,
    • disabled.

You can also claim this employer social insurance discount for all employees who work for you under a standard employment contract and are under 21. The part-time requirement does not apply to this group.

Conditions for claiming the discount

If you want to claim this discount, you must first notify the Czech Social Security Administration using a form that it has not yet published. 🙂

To claim the discount, the employee must give you proof of entitlement to it. This may be a child’s birth certificate, confirmation of studies, retraining confirmation or proof of disability.

The discount can be claimed monthly, provided the employee meets the conditions throughout the month. If your employee turns 21 on 15 June, for example, you can last claim the employer social insurance discount for May.

Is the discount worthwhile for you?

When claiming this discount, you pay employer social insurance of only 19.8% instead of 24.8%. To illustrate:

Without discount With discount
Gross wage CZK 15,000 CZK 15,000
Employer social insurance CZK 3,720 CZK 2,970
Employer health insurance CZK 1,350 CZK 1,350
Total employee cost CZK 20,070

CZK 19,320

(you save CZK 750 per month)
Employee’s net wage (with the basic taxpayer credit) CZK 13,350 CZK 13,350

Although I welcome state support for employing these groups, it currently looks as though the conditions for claiming the discount will be fairly complicated and apply only to a specific group of employees. If you are considering it, I definitely recommend discussing your situation with your accountant and deciding whether it is worthwhile for you :-).

If you are unsure, do not hesitate to get in touch and we can look at it together.