Gross, net and super gross wages: How do they differ?
You may have experienced this in your first job – the disappointment of seeing a nice number on your salary contract but having a noticeably lower amount come into your account. The basis of everything is the so-called gross salary. That is to say, what is stated in the employment contract. Statutory deductions are then made from the gross salary, resulting in the amount that actually goes into your account – the so-called net salary.
Previously, the Czech Republic also used the term super gross wage. This was the gross wage plus the employer’s levies. The super gross wage was used to calculate income tax. However, the government abolished this system in 2021 and today tax is calculated directly on gross wages.
Deductions and deductions from wages are governed by the Labour Code, but also by the Social Security Act, the Public Health Insurance Act and the Income Tax Act. The employer is obliged to list all deductions on the pay slip.
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What is deducted from the employee’s wages?
Employers must deduct social security, health insurance and income tax from each employee’s wages. For 2025, the following amounts and percentages apply:
- Social insurance is 6.5% of gross wages.
- Health insurance is 4.5% of gross wages
- Income tax has a basic rate of 15% and 23% for high incomes above CZK 131,901 per month.
In addition, tax credits are also included in the calculation of net pay. These allowances are as follows:
- Basic taxpayer discount (monthly CZK 2,570).
- Child tax credit (1st child CZK 1,267, 2nd child CZK 1,860, 3rd child and others CZK 2,320).
- Student, disability or spousediscount (under certain conditions).
These discounts affect the final amount of income tax, not social and health insurance.
How it works in practice:
Imagine an employee with a gross salary of CZK 35,000. He is childless and claims only the basic ratepayer discount.
This means that he is subject to the following levies:
- Social insurance: 6.5% of CZK 35,000 = CZK 2,275
- Health insurance: 4.5% of CZK 35 000 = CZK 1 575
- Income tax before discount: 15% of 35 000 = CZK 5 250
- Discount per taxpayer: -2 570 CZK
- Actual income tax: 2 680 CZK
The total levy for the employee is therefore CZK 2 275 + 1 575 + 2 680 = CZK 6 530.
The net salary will therefore be CZK 35 000 – 6 530 = CZK 28 470.
For similar calculations, we recommend using the net wage calculator, which quickly calculates the resulting amount taking into account your specific allowances, children or executions.
What extra does the employer pay?
The employer pays additional mandatory deductions from their employee’s gross wages, which are not deducted from the employee’s wages but still increase the company’s costs. These are social insurance (24.8% of gross wages) and health insurance (9% of gross wages).
The total employer contributions therefore increase the wage by 33.8%.
How it works in practice:
Let’s stay with our example of an employee with a gross salary of CZK 35,000:
- Social insurance: CZK 8,680
- Health insurance: CZK 3,150
- Total contributions: 11 830 CZK
The employer’s wage cost for this employee is therefore CZK 35 000 + CZK 11 830 = CZK 46 830.
This difference is crucial for the entrepreneur and must be taken into account when comparing the cost of the employee. Because although the employee receives “only” CZK 28,470, the company pays almost CZK 47,000 for him. This is where the payroll calculator will help you, by showing you the employer’s costs in addition to the net pay.
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How are garnishments and other deductions from wages deducted?
In addition to these statutory deductions, there may, of course, be situations where your wages are reduced by other items. A typical example is foreclosure and insolvency. The employer is also obliged to make deductions from wages on the basis of court decisions and must send the deduction it takes from the debtor’s wages to, for example, the bailiff, insolvency administrator or the court. The amount of deductions is then governed by the rules on the amount to be withheld, which depends on the minimum subsistence level and the number of dependants. In other words, how much you have to keep, regardless of the foreclosures. The amount you can deduct varies regularly according to your net income and the number of dependants.
This amount is adjusted each year according to:
- the individual’s subsistence level (for 2025 this is CZK 4,860)
- and the so-called standard cost of living (for 2025, approximately CZK 15 597, which may vary according to the number of persons and place of residence)
Thus, the basic non-forfeitable amount in 2025 is CZK 13,638 per month. If the employee has a spouse (with whom he/she lives in the same household) or children, the non-forfeitable amount increases for each dependent.
In addition, voluntary deductions may be made from wages. These include, for example, contributions to retirement savings, meals, union dues or other amounts agreed upon between the employer and employee.
How it works in practice:
An employee has a net salary of CZK 30,000, is married and has two children. He has one non-priority foreclosure.
- Base: CZK 13,638
- Wife: CZK 3 410
- Child 1: CZK 3 410
- Child 2: CZK 3 410
= 23 868 Kč non-alienable minimum
Amount to be distributed: 30 000 – 23 868 = 6 132 CZK.
In the case of a non-priority execution, one third of this amount is deducted, i.e. CZK 2 044. The employee will therefore receive the following: CZK 23 868 + CZK 4 088 (two thirds) = CZK 27 956.
In insolvency, a larger part of the salary is usually deducted than in a normal execution. However, the system is still governed by the non-forfeitable amount. Most of the money above this minimum goes to the insolvency administrator on a repayment plan.
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Summary
Your employer can deduct statutory contributions from your wages, i.e. social security (6.5%), health insurance (4.5%) and income tax (15% or 23% for higher incomes), while tax allowances (e.g. for the taxpayer, children or studies) also affect the amount of tax. In addition to these compulsory deductions, your employer may deduct amounts from your wages based on court orders – typically in the event of foreclosure or insolvency, where a so-called non-forfeitable amount must remain (in 2025, the base is CZK 13,638, increasing according to the number of dependants). In addition, voluntary deductions can be made from wages, such as contributions to savings, meals or trade unions. It is also important to know that, in addition to deductions from your wages, your employer pays additional amounts to the state (24.8% for social security and 9% for health insurance), which significantly increases the company’s total wage costs. To get an idea of your net pay and your employer’s costs, it is worth using a payroll calculator.
