2021 will bring lower taxes, increased pensions

Tax amendments and amendments in the social sphere that come into effect in 2021 will improve the financial circumstances of many Czech families and employees.

Lower income tax and a higher tax rebate, for lower and medium income groups, will save employees several thousand crowns in their monthly pay check.

In addition, the minimum wage for which tens of thousands of people still work in the Czech Republic, has been raised by 600 crowns.

More families are expected to be eligible for child allowances from January and the state has agreed to pay child support for non-payers of alimony, and enforce payment from the debtor later.

Old age pensions will increase by an average of 839 crowns a month.