On 24 October 2024, a Communication of the Ministry of Labour and Social Affairs was published in the Collection of Laws No. 307/2024 Coll.announcing, for the purposes of sickness insurance, the amounts of the reduction thresholds for the adjustment of the daily assessment base applicable in 2025.
How are the reduction limits determined?
The reduction thresholds are determined according to Act No. 187/2006 Coll., on Sickness Insurance, § 22 in the following manner:
The first reduction limit is set as one thirtieth of the product of the general assessment base determined in accordance with the Pension Insurance Act for the calendar year two years preceding the calendar year for which the amount of the reduction limit is determined and the conversion coefficient determined in accordance with the Pension Insurance Act for the adjustment of this general assessment base.
The amount of the general assessment base for 2023 and the conversion coefficient for adjusting this assessment base were published in Government Decree No 282/2024 Coll. of 30 September 2024. The amount of the general assessment base for 2023 is CZK 43,682. The conversion coefficient for adjusting this assessment base for 2022 is 1.0658.
The second reduction limit is equal to 1,5 times the amount of the first reduction limit.
The third reduction threshold is 3 times the amount of the first reduction threshold.
The amounts of the reduction thresholds shall be rounded up to whole crowns after all reduction thresholds have been calculated.
Reduction thresholds for sickness insurance purposes
The reduction thresholds for the purposes of sickness insurance in 2025 are:
The first reduction threshold for adjusting the daily assessment base is CZK 1,552
The second reduction threshold for adjusting the daily assessment base is CZK 2 328
The third reduction threshold for adjusting the daily assessment base is CZK 4,656
Which sickness insurance benefits are affected by the reduction thresholds?
The reduction threshold affects the amount of these sickness insurance benefits:
- Sick leave
- Nursing
- Long-term care allowance
- Paternal postnatal care
- Maternity cash assistance
- Pregnancy and maternity allowance
Calculation of the reduction threshold for the calculation of compensation for temporary incapacity for work and quarantine
From the above reduction thresholds set out in MSPV Notification No. 313/2023 Coll., the reduction thresholds for the calculation of compensation for temporary incapacity for work and quarantine paid to employees by the employer in the first 14 days are calculated. The conversion coefficient is 0.175 and the amount calculated is rounded up to the nearest penny.
The amount of the reduction threshold for calculating wage compensation for DPN and quarantine is:
- First reduction limit - CZK 271.60 (CZK 1,552 x 0.175)
- Second reduction limit - 407,40 CZK (2 328 CZK x 0,175)
- Third reduction limit - CZK 814.80 (CZK 4,656 x 0.175)
