How Does the Cafeteria Save Money?

Everything is based on the law

The amount provided by the employer to the employees in benefit points is exempt from income tax and social and health insurance contributions, so the employee saves 26,6% compared to the wages. The employer will save 5.7% on social and health insurance starting from January 2024 compared to the same amount provided in gross wages. And even though, starting from January 1, 2024, the limit for total benefits is set at half of the average monthly wage, it’s still a pleasant development, isn’t it?

Sample example of your savings from January 1, 2024

Total remuneration of CZK 25,000

Provided as monetary compensation CZK 25,000 CZK 24,000
Provided in benefits CZK 0 CZK 1,000
Provided as monetary compensation CZK 25,000 CZK 24,000
Employer's contribution to social security CZK 6,200 CZK 5,925
Employer's contribution to health insurance CZK 2,250 CZK 2,160
Total taxable income CZK 25,000 CZK 24,000
Social security contribution CZK 1,775 CZK 1,704
Health insurance contribution CZK 1,125 CZK 1,080
Income tax CZK 1,180 1 030 Kč
Income tax and social security and health insurance contributions CZK 4,080 CZK 3,814
Net income (monetary compensation) CZK 20,920 CZK 21,186
Net income (wages in kind) CZK 0 CZK 1,000
Total net income CZK 20,920 CZK 21,186
Difference in net income   CZK 266
Savings for employees (in %)   26,6 %
Employer's contribution to social security and health insurance CZK 8,450 CZK 8,112
Difference in the social security and health insurance contributions   CZK 338
Tax deductibility of expenses CZK 25,000 CZK 24,000
Income tax of legal persons CZK -7,025 CZK -6,744
Income tax of legal persons difference   CZK -281
Total cost impact on employers   CZK 57
Total impact on employers (in %)   5,70 %

Saving company costs without cutting costs on employees is a smart philosophy of every well-functioning company.

How can you save?

  • Launch a cafeteria with us

    It will help you avoid increasing wages. At the same time, your employees will receive 26,6% more from their salary and your company will save 5,7 % on costs.

  • Mitigate the impact of pay cuts

    If you have to reduce wages, convert some of it into benefits. The real drop in your employees' earnings will be 26,6% smaller.

  • Choose your swap

    Your employees will have the option to increase their real income and reduce your company's costs by converting part of their earnings to cafeteria benefits.

Calculate your direct costs and savings

The cafeteria saves at all times

It’s simple. Your employees can use the cafeteria to find the items they need to buy, no matter what. In addition, when they purchase them using employee benefits, they get an extra 26,6% off their shopping. This way, your company is saving costs as well.

Let the facts speak for themselves

According to the Czech Statistical Office, the average annual amount spent on health is CZK 3,870 per household member. This number includes CZK 2,796 for pharmaceuticals and medical aids and CZK 921 for emergency health care. On average, a household spends 2.6% of its expenditure per year! And that’s not a small number. For comparison – one member of an average Czech household spends CZK 1,440 on education, which is 1% of total consumption expenditure.