The government is preparing the largest wage reform in thirteen years. Taxes on workers would drop significantly – ČT24 – Česká televize

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“We will basically want to get the maximum so that people simply see it and, of course, are not afraid to spend money,” states the Prime Minister and chairman of the ANO movement, Andrej Babiš. According to him, the ideal range would be fifteen percent. “So the total abolition of the super-gross wage, I would like to enforce that, I am talking about it with the Minister,” he added.

For employees with lower incomes, taxes would fall by hundreds of crowns a month, and those with above-average salaries by several thousand. The latest and probably the last attempt to abolish the super-gross wage while significantly reducing taxes has clear support in the House. Previously, the same proposal was unsuccessfully promoted by the ODS.

For example, Evžen Kiecka works in the North Moravian engineering company Anaj Czech as a maintenance worker. He earns 30,000 gross a month, and less than 23,000 net will come to his account. “I think taxes are high enough. In some states they are lower. And the earnings there are then adequate, “he says. If he abolished his super-gross wage and kept the tax rate, his net salary would increase by fifteen hundred. “I would use it for travel,” he adds.

For example, a worker with a salary of 36,000 gross would save over eighteen hundred a month, and a manager with an income of 80,000 would save four thousand. On the contrary, for example, employees with a salary of 21 thousand would have an additional thousand left.

Prime Minister Andrej Babiš thus intends to enforce the most radical way of abolishing the super-gross wage; a 15 percent tax would only be calculated on the gross wage. “This makes sense, of course, but as Minister of Finance, I must point out that it means a big budgetary impact, it is about 90 billion,” says Deputy Prime Minister and Minister of Finance Alena Schillerová (for YES).

“Only self-employed people are helped, and I would like the government to help employees as well. So we have an agreement that in the next few weeks the Minister will propose the abolition of the super-gross wage, “states the Minister of Labor and Social Affairs and Vice-President of the CSSD Jana Maláčová.

Babiš’s plan would probably go smoothly in the House

“If the Prime Minister supports our proposal and with it the YES movement to reduce the tax to fifteen percent of gross wages, which is about seven percent net for each employee, then this is great news for taxpayers,” says the chairman. Parliamentary Club and 1st Deputy Chairman of the ODS Zbyněk Stanjura.

According to MP and chairman of KDU-ČSL Marian Jurečka, the plan is realistic if there is a will. “I just remind you that in 2015 it was already on the table, it was blocked by the then Minister of Finance Andrej Babiš,” he said.

The abolition of the super-gross wage was written by the government coalition in a program statement. She has already tried to agree on a specific form several times. So far, however, she has not succeeded.

“The government periodically says it will cancel or not cancel it, this is about the fourth time during the election period that they have made a turn. So until I see the proposal, I will not believe it, “recalls Mikuláš Ferjenčík (Pirates), Deputy Chairman of the Budget Committee of the Chamber of Deputies.

“The question is how the government would cope with the shortfall in the state budget,” says Věra Kovářová, vice-president of the parliamentary club and vice-president of the STAN movement.

The coalition wants to enforce the proposal from January 1. Entrepreneurs demand that the government decide on such a fundamental change as soon as possible. They will have to adjust their accounting systems. “I estimate that the software company that supplies us with the accounting program would be able to do it in two months,” says the owner of the company Anaj Czech, Vavřinec Pečínka.

The cabinet plans to come to the Chamber of Deputies with a specific proposal in September.

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