Changes to travel allowances from 1 January 2023
A draft amendment to the Decree of the Ministry of Labour and Social Affairs is currently under review, which is intended to change the rates of basic compensation for the use of road motor vehicles, meal allowances and the average price of fuel for the purpose of providing travel allowances with effect from 1 January 2023. Approval and publication of the decree in its final form is expected during December 2022.
Domestic meal allowance
Draft domestic meal allowance rates from 1 January 2023 for each working day of journey depending on its length (the final range may still change in the course of the discussion):
- CZK 127 to CZK 152, if the business trip lasts 5 to 12 hours,
- CZK 193 to CZK 233, if the business trip lasts longer than 12 hours but only up to 18 hours,
- CZK 303 to CZK 363, if the business trip lasts longer than 18 hours.
Following the increase in the meal allowance limits, the maximum amount of an employee’s tax-free flat-rate cash meal allowance (financial contribution to meals) will also change. From 1 January 2023, if the proposal is approved, the amount would be CZK 106.40 (currently CZK 99.40 can be exempted).
Compensation for using one’s own car and the average fuel prices
The rate of basic compensation for 1 km of travel will be:
- CZK 1.40 for single-track vehicles and tricycles (currently CZK 1.30),
- CZK 5.20 for other motor vehicles (currently CZK 4.70).
By contrast, there will be a decrease in the average fuel prices:
- CZK 41.50 for 1 litre of Natural 95 (currently CZK 44.50),
- CZK 45.20 for 1 litre of Natural 98 (currently CZK 51.40),
- CZK 45.70 per 1 litre of diesel (currently CZK 47.10),
- CZK 6.00 per 1 kilowatt-hour of electricity (rate remains).
Foreign meal allowance
In addition to changes in domestic meal allowances, an increase in the rate of foreign meal allowances is also proposed for some countries, mainly due to rising prices. In the meantime, the proposal foresees an increase in rates for 25 countries, each by EUR 5 (or USD 5). Among European countries, this includes for example Poland, Sweden, Finland and Denmark. On the contrary, no increase has been proposed for the countries, where Czech employees travel most frequently (Germany, Austria, Slovakia, Italy, France).
Please do not hesitate to contact us for more information.
Author: Roman Burnus, Vendula Florešová