With effect from 1 January 2024, the amount of the non-dischargeable amount for the calculation of executions and insolvencies is changed. The reason for the change is Act No. 407/2023 Coll. published in the Collection of Laws, Part 188, on 27 December 2023, which Repeals Section 26a of Act No. 117/1995 Coll., introduced in 2022, which regulates the amount of the increase in the normative housing costs.
What was the amount of the increase in the standard cost of living and how did it affect the calculation of the non-forfeitable amount?
Amount of increase in standard housing costs introduced many question marks in the calculation of the non-forfeitable amount in 2022 and it was not entirely clear whether it should be included in the calculation of the non-forfeitable amount or not.
It was only after the Supreme Court's decision of 8 June 2022 under case number Cpjn 202/2022 that clarity was provided. On the basis of this opinion, it was decided that the amount of the increase in the standard cost of living should be included in the calculation of the non-chargeable amount.
From 1 January 2024 with does not count this amount again a the non-forfeitable amount is calculated from only two amounts and these are normative housing costs a the minimum subsistence level for an individual.
Amount of normative housing costsis listed in § 26 of Act No. 117/1995 Coll., on state social support. For the purpose of calculating the amount that cannot be charged, the amount of the normative housing costs for one or two persons for an apartment used under a lease agreement in a municipality with at least 70,000 inhabitants is used (§ 1 of Government Regulation No. 595/2006 Coll., on the method of calculating the amount...). For 2024 the amount remains unchanged and remains in the amount of CZK 14,197.
Individual subsistence amount is adjusted § 2 of Act No.110/2006 Coll., on the minimum subsistence level of an individual. The above for 2024 also remains unchanged and is monthly 4.860 CZK.
Calculation of the amount to be recovered per person of the debtor
The method of calculating the amount to be withheld is regulated by Government Regulation No. 595/2006 Coll. and is as follows:
- 2/3 of the sum of the individual's subsistence minimum and the normative cost of living = 2/3 of the sum of CZK 4,860 + CZK 14,197 = 12.705 CZK
The basic non-deductible amount per person liable for 2024 is CZK 12,705.
Calculating the amount of the non-forfeitable amount per dependent
The calculation of the non-forfeitable amount per dependent is:
- 1/4 of the non-forfeitable amount per person of the obligor = 1/4 of the amount of 12.705 CZK = 3.176 CZK
The non-forfeitable amount per dependent is CZK 3,176.
Calculation of the fully attachable amount
The fully confiscable amount is equal to 1.5 times the sum of the individual's subsistence amount and the standard cost of living
- Fully confiscable amount = 1.5 x (CZK 4,860 + CZK 14,197) = 28.585,50 CZK
The fully attachable amount, or the amount above which the remainder of the net wages are deducted without limitation, is CZK 28,585.50.
TIP: Amount of non-forfeitable amount per obligor, per dependent and amount of fully forfeitable amount for payroll processing in the program AVENSIO SW will be included from January 2024 in the version to be issued in the second half of January. We will inform users about its release.
