While last year there was a single limit for the provision of tax-free employee benefits, this year is different. In 2025, employee benefits have been split into two groups, namely health benefits and other benefits. Each of these groups of benefits has a different limit for tax exemption.
In general, benefits are defined as non-monetary benefits provided by the employer to the employee or his/her family member from the cultural and social needs fund, from the social fund, from after-tax profits or against expenses that are not expenses for the achievement, provision and maintenance of income.
Medical benefits
Starting in 2025, employers have the option to provide health benefits to their employees. The tax exemption limit for these benefits is the average wage for the tax year. This year it is possible to provide employees with health benefits without the obligation to pay taxes and premiums in the amount of CZK 46,557.
The category of health benefits includes goods and services of a medical, therapeutic, hygienic and similar nature. An important condition for the exemption of this non-monetary benefit is that the goods and services are purchased from medical establishments or on prescription. For these purposes, health care facilities means premises for the provision of health care services.
Leisure benefits
Other "leisure" benefits under Section 6(9)(d) of the Income Tax Act provided by the employer to the employee are tax exempt up to the limit of half of the average wage, which is CZK 23,278.50 in 2025.
Other "leisure" benefits include the employer's non-monetary contribution to:
- Sports events
- Cultural events
- Recreation
- Use of pre-school childcare facilities, including kindergartens, under the Education Act
- Education (other than for employment purposes)
- Printed books
It should be noted that the tax exemption limit is assessed for each employer separately. Therefore, if an employee has several employers at the same time or several employers consecutively within a calendar year, he can draw tax-free benefits from each of his employers up to the limits mentioned above.
To learn more about this topic, log on to Spring e-Conferenceorganised by the Wage Academy. The conference will be addressed by Ing. Hanus Kytler with his lecture.
