Every year, the reduction thresholds for average hourly earnings for the purpose of determining reimbursement of wages for the first 14 days of incapacity for work or quarantine are adjusted. In addition, the reduction thresholds for the daily assessment base or earnings for the purposes of calculating sickness benefits payable in the event of continuing incapacity for work or quarantine from the 15th calendar day onwards will also be subject to valorisation. The changes are effective from 1 January 2022.

Valorisation

The valorisation of the reduction thresholds for sickness insurance has not increased the percentage rates for determining the amount of reimbursement of wages or sickness benefit, these remain the same. Only the part of income, which is included (taken into account) when calculating social benefits or reimbursement of income, is increased.

New reduction thresholds

For the year 2022, the following reduction thresholds have been set to adjust the daily assessment base:

• The first reduction threshold is CZK 1,298
• The second reduction threshold is CZK 1,946
• The third reduction threshold is CZK 3,892

For the purpose of determining reimbursement of wages, the calculation of average hourly earnings is used. The following reduction thresholds have been set for the calculation of average hourly earnings for the year 2022:

• the 1st reduction threshold of CZK 227.15 instead of the current CZK 206.85, with 90% of that amount to be counted against the average income.
• 2nd reduction threshold CZK 340.55 instead of the current CZK 310.28 – 60% of the income exceeding the 1st reduction threshold up to the value of the 2nd reduction threshold is counted.
• The 3rd reduction threshold is CZK 681.10 compared to the current CZK 620.38, with 30% of the amount exceeding the 2nd reduction threshold up to the amount of the 3rd reduction threshold being counted.
• Amounts above the third reduction threshold are not counted, not taken into account.

Reimbursement of wages or other income shall then be 60% of the hourly earnings determined in this way.

Sickness benefits

The calculation of sickness benefits also does not take into account the entire earning, but only a certain part of it. Reduction thresholds are also set here. 
Reduction of the daily base of assessment

• 90% of the daily assessment base is counted in the 1st reduction threshold,
• 60 % of the amount between the 1st and the 2nd reduction threshold is included,
• 30 % of the amount between the 2nd and 3rd reduction threshold is included,
• an amount above the 3rd reduction threshold is not taken into account.

Other sickness benefits

Valorisation will mainly affect:

• maternity assistance (maternity benefits)
• caregiver allowance
• paternal postnatal care benefits
• long-term caregiver allowance.