On 4 December 2023, the Czech Statistical Office published the average wage for the 1st to 3rd quarters of 2023, which amounted to 42.427 CZK. This is an increase of CZK 3,110 compared to last year.
The average wage for Q1 to Q3 2023 will also be used to calculate the 2023 mandatory disability share. Find out what the mandatory share is, how it is calculated and how employers can meet their obligation in this article.
Compulsory employment of people with disabilities
Employment of persons with disabilities is regulated by the Act 435/2004 Coll., on employment.
Who is a person with a disability?
Persons with disabilities are defined in § Section 67(2) and (6) of the Employment Act a they are persons who are recognised by the social security authority:
- disabled in third degree of invalidity (people with more severe disabilities)
- disabled in first degree or second degree of invalidity
- the disabled (people with disabilities)
- That are no longer disabled, for a period of 12 months from the date of this assessment.
What is the mandatory PWD share?
Mandatory share of PWD is the obligation of employers with more than 25 employees in an employment relationship, employ a mandatory proportion of disabled people. Mandatory shares are 4 % of the total of the employer's employees.
In the case of employment agencies, the total number of employees in employment does not include employees who are temporarily assigned to work for the user.
How will the employer fulfil its obligation?
Employers fulfil their obligation in the following ways:
- Employing people with disabilities in an employment relationship
- Subscribing to products or services from employers with whom Labour Office entered into an employer recognition agreement, or by awarding contracts to these employers
- Taking products or services from people with disabilities, who are self-employed and do not employ any employees, or by awarding contracts to such persons
- By diverting to the state budget
- There may also be a combination of the above methods
For the purpose of determining the total number of employees, the total number of employees who are persons with disabilities and the mandatory share, the average annual headcount is decisive.
What is the amount of the state budget levy?
Above a levy on the state budget is 2.5 times the average monthly wage for each disabled person the employer should employ and does not employ in the national economy for the first to third quarters of the calendar year in which the obligation to meet the mandatory share of persons with disabilities arose.
This Levy the employer sends by 15 February of the following calendar year to the state budget through the Labour Office.
Filling the compulsory share and the manner of it, the employer must notify the regional office of the Labour Office in writing namely until 15 February the following calendar year.
AVENSIO SW programme
Specifying the type of disability of the employee for the purposes of the mandatory proportion of persons with disabilities, shall carry out in the programme on the tab Employee (Employee card - Personal data), in the line Healthy. disability. Via the button with three dots, the Overview of the employee's disabilitywhere you fill in the type of disability.
In addition, it is important that employees who are to count towards the mandatory PWD share have the following set up for the function (Main menu - Dictionaries - Functional and professional classification - ISCO functions) in the line Not to be counted in the PWD value Count.
Background report for employers' compliance in connection with Act No. 435/2004 Coll., on Employment, is Report No 011300 - Recapitulation Share of persons with disabilities. If you check the Tax discount condition for this report, the report serves as a basis for applying a tax discount according to the provisions of Section 35(1) of Act No. 586/1992 Coll., on Income Taxes.
Warning: The average wage for Q1-Q3 2023 will be updated in the program with the version that will be released in the latter part of January. If you need to print a report now, you can manually change the amount in the report entry window.
TIP: You can also find detailed information on the processing of the mandatory share for persons with disabilities in the Online Help for the programme. (Main menu bar - Help - Online help or MY ALPHA Customer Zone - Online Help).
