Hi everyone, I'd appreciate some enlightenment about Czech taxation laws. The few jobs I've looked at advertise as paying about 25-30 000 K a month. How much of that can I expect to get in the hand? Is taxation collected from the pay every month, or will I have to give up a whole whack of money at the end of the fiscal year? Also... health system. Does the state cover the costs of visits to GPs, specialists, hospitals, etc? Do I need my own health insurance? I'm a Czech citizen but have only lived here two weeks, so know nothing about these practicalities. Any advice much appreciated. Cheers, Klara
First a little about taxation - you are supposed to pay (automatically, as the employer deducts and pays the taxes for you) 1. health insurance (if I remember it well, it is 4.5 %), 2. social security insurance (8.5 %), 3. general income tax. There is also a given amount, so called nontaxable part of the base (varying according to the number of persons dependent on you, i.e. spouse and children up to 26 years of age, if they are studying). The rest represents the base for calculating the insurance and the tax. An accountant would tell you more, but you can expect to get approx. 14-18 000 Kc out of 20-25 000. At the end of the year, you will get a report for the district financial office and you will have to report all eventual other income and pay the taxes (if there are any) or get the difference back. If you have just one employer and no other income at all, the employer will send your tax report automatically. Now the health care: It is up to you to choose your health insurance company (there are dozens of them in the country)and sign a contract with them. The employer will need the identification code of your health insurance company and will pay them your monthly contribution. The ID health insurance card will cover most of the treatment you might need (there are some exceptions, e.g. certain dental work or medication where you will have to pay a part of the costs, but basic care, hospitalization and surgery are covered by the insurance). Some private GP´s and specialists ask for so-called above-standard care contribution, but it is usually 1-3 000 Kc per year, and you do not have to accept it. I hope it helps some.
I recommend Vseobecna Zdravotni Pojistovna, health insurance is cca 1000 Kc month. If you are in Prague address is: Na Perstyne 6, Praha 1 (just one block from TESCO department store)
Health insurance cost Magan mentions applies to unemployed people, self-employed people, and students (26 years and older). Otherwise, you have to pay the appropriate percentage of your income. Všeobecná zdravotní pojišťovna is the biggest company, however, thousands of people left it recently and switched to other ones, e.g. vojenská pojišťovna or pojišťovna ministerstva vnitra. It is better to check on the advantages they offer before signing up with any of them.
VZP is the only insurance that a foreigner can obtain (via their employer, u can go buy some other one if u choose) AND COVERS, WELL, ABOUT NOTHING. Notoriously know as the worst insurance company in the country. Forget about any dental, unless an emergency, which they paid about 20% of it. Broken arm? They paid for the xray, nothing more! Just the rehab of my arm cost me more than the whole policy for a year, which, for a 27 year old is now about 18,000 kc annually...if you go to buy insurance on your own, it obviously isnt calculated by your income. It is done in the normal fashion, age, smoker, etc... So, if you go to but insurance, choose a different company. If you are not czech and work here, you are stuck with VZP.
Thanks everyone for all that info and the recommendations, I suppose I'll get started checking out the various different health insurance companies. Sorry to hear about your bad experiences KJP, I hope things change soon, that really doesn't sound fair. But with more people from Europe having workrights here, there may be a big enough stink to change things.
