New legislation
As of 1 January 2026, the practice of the so-called salary swap, whereby employees received part of their salary in the form of non-cash benefits with a tax advantage, ended. The new regulation clearly separates salary and benefits and ends the possibility of replacing the agreed salary with tax-advantaged benefits in kind.
The new rule is that if benefits are provided at the expense of wages, they are considered taxable wages and are subject to tax and social and health insurance contributions. Exemption from tax is only possible if the benefit is non-monetary and provided in excess of wages, not as a substitute for them. The legislator has thus definitively put an end to the long-standing disputes about whether part of the wage can be “dressed up” as a benefit.
The two categories of tax-advantaged benefits – leisure and health benefits – remain, while their annual limits have been increased starting in 2026. Leisure benefits are exempt up to half of the average wage (CZK 24,483.50 per year), health benefits up to the full average wage (CZK 48,967 per year). Employers do not have to abolish benefits, but they must provide them as a real extra bonus, not as a replacement of part of the agreed remuneration.
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