Due to the reduction of tax limits, four out of ten Czech companies reduced employee benefits. This follows from a new survey by the Chamber of Commerce among 457 companies of all sizes across fields, which is available to Czech Radio. This is how companies react to the fact that, as of January 1, non-monetary benefits are only exempt from tax up to half of the average monthly salary.
Prague
1:24 p.m May 6, 2024
Share on Facebook
Share on LinkedIn
Print
Copy the url address
Abbreviated address
Copy to clipboard
Close
Due to the reduction of tax limits, four out of ten Czech companies reduced employee benefits (illustrative photo) | Source: Profimedia
The limitation of the tax exemption for employee benefits was part of the consolidation package, and for example the Chamber of Commerce warned last fall that companies would limit taxed benefits. Now it has the first concrete numbers.
40 percent of Czech companies limit employee benefits. Tomáš Jeník’s report summarizes what the workers lost
Up to 19 percent of companies reduced the number of benefits, 17 percent reduced their amount. And 9 percent of companies canceled benefits completely.
“The benefits were most often limited by small companies, because they cannot deal with the huge, unnecessary additional bureaucracy. For small companies, even every other company cut back on benefits,” Tomáš Prouza, head of the Trade and Tourism Association, tells Radiožurnál.
Untouchable food stamps
For example, food stamps are basically inviolable. Almost 90 percent of employers provide them to employees, and according to Jana Havrdová, vice-president of the Chamber of Commerce, nothing will likely change.
“A company that would cancel meal benefits would significantly harm itself in a very competitive labor market,” she is convinced.
‘Restrictions on health prevention’
They were the first companies to cancel, for example, various health benefits, i.e. various preventive examinations, vaccinations or psychological support.
Sociologist Prokop: The costs of prevention should be borne by insurance companies so that they have an incentive to invest in it
Read the article
“This means that health prevention is limited in the Czech Republic because of this. And this means a long-term worsening of the health status of the Czech population,” Prouza points out.
The Chamber of Commerce is therefore now negotiating with the Ministry of Finance to exclude health and social benefits from the tax ceiling from next year. According to Havrdová, it would certainly be welcomed by operators of fitness centers and other sports venues, who are worried about the outflow of customers.
“A lot of people are motivated to exercise by, among other things, the opportunity to draw a favorable entrance fee, which they received as one of the employee benefits. Sports grounds would then of course have lower sales,” he says.
Somewhere they don’t cut corners
Despite the results of the survey by the Chamber of Commerce, at least in some fields – especially in IT – companies are in no hurry to cancel benefits. Some of them converted benefits directly into wages, or companies found other forms of improvement to retain or attract employees.
The Labor Office was not prepared for crises. I’m not surprised at the frustration of the employees, says CEO Kristof
Read the article
“As a result of inflation, the wage battle is burning between companies. Companies overpay their employees and unfortunately have to accept the fact that they have to keep these benefits even at the cost of the fact that it will be more costly for them,” says Jiří Halbrštát from the Manpower Group staffing agency.
The so-called consolidation package was approved by the House and then the Senate last fall. The government hopes to stabilize public finances from him. During this year and next, the state budget should improve by approximately 150 billion crowns.
Tomáš Jeník
Share on Facebook
Share on LinkedIn
Print
Copy the url address
Abbreviated address
Copy to clipboard
Close
