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?
How Does the Cafeteria Save Money?
Everything is based on the law
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?
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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.
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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.
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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.
