Prague — Social security insurance, which ranks among secondary staff costs, in the Czech Republic is one the highest in the world, according to a survey conducted among 36 countries by consulting company Deloitte.
While social insurance paid from an average monthly wage is more or less also average, it increases with the growing wage. In the category of wages around 50,000 Kč, the Czech Republic ranks among the most expensive countries along with Slovakia, Estonia and Belgium.
“In Great Britain but also in Malta or Cyprus, for instance, secondary staff costs paid by employers per employee with income around 50,000 Kč a month amounts to less than one quarter (in comparison with CR). Unlike most countries, employers in the Czech Republic have to pay markedly higher insurance for employees to the state than employees themselves,” Deloitte manager Lucie Rytířová said.
Insurance paid by employers in the Czech Republic amounts to 34 percent.
Entrepreneurs in the CzechRepublic pay markedly lower insurance. Present insurance rates for entrepreneurs are relatively high, standing at 13.5 percent for health insurance and 29.2 percent for social security insurance, but the basis for their calculation is only one half of net profit, the study noted.