Employee health insurance

The employer pays health insurance for his employees and a part of his wage is paid for this purpose by the employee. Health insurance is interesting because everyone has to pay for it, the state does it for someone.

What counts premiums

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The basis of assessment is the total income from employment and emoluments that are subject to personal income tax and are not exempt from that tax, and which the employer has charged him in connection with employment (performance in cash and non-monetary form and other benefits provided by the employer).

On the contrary, they do not include :

  • damages under the Labor Code,
  • severance pay , severance pay and surrender benefits under special legislation
  • the loyalty of miners ,
  • remuneration paid under the Invention and Improvement Act, if the creation and application of the invention or the improvement proposal was not related to the performance of the employment,
  • one-time social assistance provided to the employee to bridge his extremely difficult circumstances resulting from a natural disaster, fire, environmental or industrial accident or other major incident,
  • services provided to the beneficiary of a retirement or invalidity pension for a third degree disability after one year from the date of termination of employment.

Minimum assessment base

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Health insurance must be paid at least from the minimum wage (Section 3 of the Act). Therefore, if the employee’s assessment base is lower than the minimum wage, the employee is obliged to pay the health insurance company through his employer a premium of 13.5% of the difference between these bases . If an employee has more employers, he / she is obliged to pay the premium through the employer of his / her choice, always with a premium payment in the following calendar month. However, if the assessment base is lower due to obstacles on the part of the organization, the employer is obliged to pay the difference.

For some people, however, the minimum assessment base does not apply . They are people

  • with severe physical, sensory or mental disability, who holds a ZTP or ZTP / P card
  • who have reached the age required to qualify for a retirement pension but do not qualify for their retirement,
  • who, all day long, personally and properly cared for at least one child under the age of 7 or at least two children under the age of 15,
  • who, at the same time, are self-employed in addition to employment and make advances from at least the minimum assessment base for self-employed workers,
  • for which the state is the payer , these persons are:
    • dependent children
    • pensioners
    • recipients of parental allowance
    • women on maternity and parental leave
    • job seekers, including jobseekers who have received short-term employment,
    • persons in need of assistance in material need, if they are not gainfully employed, are not in the register of job seekers and are not beneficiaries of a retirement pension, a third-degree disability pension, a widow’s or widower’s pension, or a beneficiary of a parental allowance or dependent child,
    • persons who are dependent on the care of another person in grade II (moderate dependence) or grade III (severe dependence) or grade IV (complete dependence), as well as those caring for them, as well as those caring for the younger 10 years who are dependent on the care of another person in grade I (light dependence)
    • persons serving an essential service in the armed forces, or civilian service, and persons called up for military training,
    • persons in security detention or in custody or imprisonment,
    • persons who are third-degree disabled or who have reached the age required to qualify for a retirement pension but do not qualify for the third-degree disability pension or retirement pension and have no income from employment, self-employment and no foreign income; or this pension does not exceed the monthly minimum wage per month
    • persons all day long and properly caring for at least one child up to seven years of age or at least two children under 15 years of age
    • juvenile placement in school facilities for institutional care and upbringing,
    • persons engaged in long-term voluntary service under contract with the sending organization,
    • foreigners who have been granted a residence permit in the Czech Republic, unless they have earned income from employment or self-employment,
    • recipients of a retirement pension for a specified period of time, a life pension or a pension for a specified period of time, with a fixed pension under the law governing supplementary pension savings until reaching the age required to qualify for a retirement pension.

The minimum assessment base may be reduced to a pro rata portion that corresponds to the number of calendar days if:

  • employment did not last for a month
  • employees were given time off for important personal barriers to work,
  • the employee is a person for whom the state pays the premium, or a person with a severe physical, sensory or mental disability who holds a ZTP or ZTP / P card, or a pensioner without a pension, or a person in person, day and day caring for child under 7 or two children under 15

Maximum assessment base

Maximum assessment base

For 2013-2015, the maximum assessment base for health insurance is canceled. In 2012, the maximum assessment base amounted to CZK 1,809,864. Citizens who exceeded the maximum assessment base did not pay health insurance from above the ceiling. Abolishing the ceiling also means higher wage costs for employers. In addition, the abolition of the ceiling will be reflected in the amount of personal income tax as income tax is calculated from the super-gross wage (ie gross wage plus social and health insurance paid by the employer).
Amendments to the Act on Public Health Insurance and Other Related Acts effective from 1 January 2015 revoked the provisions concerning the maximum assessment base, ie the term “maximum assessment base” does not apply to health insurance as of 1 January 2015.

A practical example

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  • An employee with an annual income of CZK 2,000,000 paid a health insurance of CZK 81,444 (4.5% of CZK 1,819,864), and from 2013 on the same income he would pay CZK 90,000 a year (4.5%) from CZK 2,000,000).
  • The employer would pay CZK 162,888 (9% of CZK 1,809,864) for health insurance in 2012 for an employee with an annual income of CZK 2,000,000, and thereafter annually CZK 180,000 (9% of CZK 2,000,000).

Health insurance premium rate

Health insurance premium rate

13.5% is deducted from the assessment base. One third (ie 4.5%) is paid by the employee, the remaining two thirds (ie 9%) are paid by the employer from his / her means.

Payment of health insurance premiums

The premium is paid for each calendar month and is payable from the 1st to the 20th day of the following calendar month.
The employer pays a part of the premium that he is obliged to pay for his employees. At the same time, it also pays a part of the premium that the employee is obliged to pay by deducting from his wage or salary, even without the employee’s consent.

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