Maximální vyměřovací základ pro rok 2023

Maximum assessment base for 2023

As every year, the Government has approved a regulation setting out the parameters relevant for the calculation of the maximum assessment base for social security purposes.

The maximum amount of gross income subject to social security contributions in 2023 will be CZK 1,935,552. The basic rates of social security contributions should remain unchanged, i.e. 6.5% of the assessment base will be paid by the employee and 24.8% by the employer. In specific cases, which we outlined in one of our previous alerts HERE, the employer's contribution rate may be reduced to 19.8%.

The same maximum assessment base will apply to self-employed persons. In their case, however, the assessment base is calculated as 50% of the difference between the taxable income from self-employment and the related tax-deductible expenses. The insurance premium rate for self-employed persons should remain 29.2% of the assessment base for those who are not covered by sickness insurance and 31.3% for those self-employed persons who are voluntarily participating on the sickness insurance.

The amount of the maximum assessment base also has a significant impact on the taxation of individuals. The income exceeding the maximum assessment base for social security contributions of CZK 1,935,552 will be subject to the higher rate of 23% whilst income under this threshold will be taxed at 15%. %.

For the sake of completeness, we would like to add that the health insurance contributions are not affected by the above threshold as they are paid out of employee’s total income or the assessment base of a self-employed person.

If you have any questions, please contact the authors of the article or our EY advisory team with whom you work.

Authors:

Helena Nastoupilová

Matouš Rucki