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Czech govʼt to lower income tax for low and medium income groups

The Czech government has approved a proposal for the abolition of the so-called "super gross" wage which would significantly lower peopleʼs taxes, according to a report by Czech Radio.

Photo by Janusz Pienkowski /

The proposal would see income tax cut from the present 20% to 15% for low and medium income groups. People with an income of over CZK 139,000 (EUR 5,323) a month would pay a 23% tax.

The super gross wage, which has been the base for calculating employee income tax since 2008, is the sum of an employeeʼs gross wage plus social and health insurance premiums.

The government also has approved a proposal to give pensioners a one-off bonus of CZK 5,000 (EUR 191), in view of higher living costs and additional expenses linked to the coronavirus crisis. The sum would be added to pensions in December.