Czech Republic

The number one employee benefits people in the Czech Republic care about is the so-called third pillar pension plan, or voluntary supplementary pension plan. The state matches employees’ contributions, up to a certain point, which makes it very attractive.

 

Asinta Partner
Natalia Zaborovska

MAI-CEE

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Country Insight

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When asked to rank three other common benefits in order of importance, people from the Czech Republic would answer: Meal Vouchers, Individual Life Insurance with tax advantage and Disability/Death.

Another quite surprising fact is that the second pillar pension plan (a fully private fund) has all but disappeared. Due to a change of government, this was abolished in 2016.

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The current trend is to draw more attention to products without an associated tax advantage. Examples are group life or accident insurance.

Average Cost For Employer Sponsored Benefits

This, of course, depends on the benefits provided. However, most employers pay towards the third pillar pension plan which is usually 30-50 Euros per employee per month. Meal vouchers are also considered a normal employee benefit at 50-70 Euros per employee per month. Other benefits such as life or accident insurance depend on the scope and sums insured and vary from industry to industry.

Advice

Employees are only interested in benefits with tax advantages. This will have an influence on your employee benefit plans. Also, avoid mixing business with pleasure, and do not ask personal questions relating to age, health, finances etc. Social etiquette is considered very important when conducting business in the Czech Republic.

Surprising Fact

What is very surprising to new employers in the Czech Republic is that native Czech employees do not expect to get either private or voluntary health insurance. They consider it a waste of money.

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