Czech Sickness Benefits 2025 — How Sick Pay and Salary Compensation Work (Step-by-Step Example)

Czech Sickness Benefits 2025 — How Sick Pay and Salary Compensation Work

Czech sickness benefits 2025 explained: employer salary compensation during days 1–14 and ČSSZ sickness benefit from day 15 — including 2025 reduction bands, rates, and a worked example for HR and employees.

Czech sickness benefits 2025 — illustration of sick pay calculation and salary compensation in the Czech Republic

Czech sickness benefits 2025 are among the most common payroll questions. Employers must distinguish between salary compensation and state sickness benefits correctly — errors can affect ČSSZ reporting and employee net pay. For employees, understanding how each stage is calculated explains why sickness income differs from regular take-home pay.

1) Two phases of Czech sick pay

Days 1–14: the employer pays salary compensation for the scheduled working hours lost to sickness. Day 15 onward: ČSSZ pays the sickness benefit (nemocenské) for every calendar day of incapacity. Both parts are based on the employee’s average earnings but follow different rules.

Important: the former three-day unpaid waiting period was abolished in July 2019 — salary compensation now starts from the first missed shift.

2) Employer salary compensation (days 1–14)

The compensation equals 60% of the reduced average hourly earnings from the previous quarter. Reduction bands valid for 2025 are applied before the percentage is calculated:

Hourly band (CZK)Portion counted
Up to 271.6090%
271.60 – 407.4060%
407.40 – 814.8030%
Above 814.800%

Compensation covers only scheduled working days — weekends are paid only if the employee normally works them.

3) Sickness benefit from ČSSZ (from day 15)

The benefit is based on the daily assessment base (DVZ) — usually average gross income over the past 12 months divided by 30. Reduction bands apply as follows:

Daily band (CZK)Reduction rate
Up to 1 55290%
1 552–2 32860%
2 328–4 65630%
Above 4 6560%

The resulting reduced base is multiplied by 60% (days 15–30), 66% (days 31–60), or 72% (from day 61 onward).

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4) Worked example (2025) — detailed

Inputs (clearly stated):

  • Monthly gross pay: 40,000 CZK.
  • Average hourly earnings (prior quarter): 250 CZK (typical 160 working hours/month).
  • Average daily gross for DVZ: 1,333 CZK (40,000 ÷ 30 for illustration).
  • Absence length: 30 calendar days.
  • Days 1–14 include 80 scheduled working hours (Mon–Fri schedule in this period).

Step A — Employer salary compensation (days 1–14):

  1. Hourly reduction: 250 CZK falls into the first band (≤ 271.60) ⇒ reduced hourly = 250 × 90% = 225 CZK.
  2. Compensation rate: 60% of reduced hourly ⇒ 225 × 60% = 135 CZK/hour.
  3. Total for days 1–14: 135 × 80 hours = 10,800 CZK.

Step B — ČSSZ sickness benefit (from day 15):

  1. DVZ (daily assessment base): 1,333 CZK.
  2. Daily reduction: DVZ is below the first 2025 threshold (1,552) ⇒ reduced DVZ = 1,333 × 90% = 1,200 CZK (rounded).
  3. Benefit rate: days 15–30 are paid at 60% ⇒ 1,200 × 60% = 720 CZK/day.
  4. Number of benefit days: 16 calendar days (days 15–30).
  5. Total benefit: 720 × 16 = 11,520 CZK.

Worked-example total = employer compensation (10,800) + ČSSZ benefit (11,520) = 22,320 CZK. Exact results depend on the employee’s real prior-quarter average and day schedule.

Shift schedules & atypical rosters: Replace the 80 hours in days 1–14 with the actual scheduled hours for that specific period (including weekends/night shifts if they were normally scheduled). ČSSZ benefit (from day 15) is always per calendar day, regardless of roster.

5) Employer duties and compliance tips

  • Keep eNeschopenka and attendance records accurate.
  • Pay salary compensation together with regular payroll.
  • Report sickness start and end dates electronically to ČSSZ.
  • Store documentation for at least 10 years.
  • Apply correct social rates (employee 7.1 %, including 0.6 % sickness insurance).

6) Common payroll mistakes

  • Mixing working and calendar days: employer compensation covers working days; ČSSZ benefit is calendar-based.
  • Using outdated reduction bands: always apply the 2025 thresholds listed above.
  • Not updating averages quarterly: refresh the reference period at each new quarter.
  • Incorrect eNeschopenka coding: wrong absence codes delay ČSSZ payments.

Disclaimer: General guidance only — verify official ČSSZ/MPSV parameters before processing payroll.

Need ready-to-use wording for your Czech leave policy?

The Czech Payroll Guide explains family-related benefits and sickness in context and includes sample policy wording, checklists and worked examples you can adapt for your own company.

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