CHANGES TO THE SUBSISTENCE MINIMUM FROM 1 JULY 2024 AND THEIR IMPACT

From 1 July 2024, the subsistence minimum is increasing, which will affect various social benefits, allowances and income tax figures. What is the new level of the subsistence minimum and what other changes can you expect?

WHAT IS THE SUBSISTENCE MINIMUM AND WHEN DOES IT CHANGE?

Under Act No. 601/2003 Coll. on the Subsistence Minimum, the subsistence minimum is defined as the minimum income threshold of an individual below which a person is in material need. The subsistence minimum changes every year on 1 July and applies until 30 June of the following year. Many other figures are derived from this amount, and they change either from 1 July or from 1 January.

THE SUBSISTENCE MINIMUM FROM 1 JULY 2024

The following subsistence minimum amounts apply from 1 July 2024 to 30 June 2025:

• €273.99 per month for one adult individual,
• €191.14 per month for each additional jointly assessed adult individual,
• €125.11 per month for a self-supporting minor child or a dependent child.

COMPARISON WITH THE AMOUNTS FOR THE PREVIOUS PERIOD

The basic amount of the subsistence minimum has increased by €5.11 per month. This increase is smaller than in the previous period, when the amount rose by €34.46 per month.

THE IMPACT OF THE CHANGE IN THE SUBSISTENCE MINIMUM ON OTHER FIGURES

INCOME TAX FROM 1 JANUARY 2025

The change in the subsistence minimum also affects certain income tax figures:

• Non-taxable portion of the tax base for the taxpayer (NČZD): €479.48 per month, €5,753.79 per year (21 times the subsistence minimum).
• Tax base above which the NČZD is reduced: €25,426.27 (92.8 times the subsistence minimum).
• Non-taxable portion of the tax base for a spouse (maximum): €5,260.61 (19.2 times the subsistence minimum).
• Tax base above which the 25% tax rate applies: €4,046.79 per month, €48,441.43 per year (176.8 times the subsistence minimum).
• Obligation to file a tax return: €2,876.90 (1/2 of the annual NČZD).

PARENTAL ALLOWANCE FROM 1 JANUARY 2025

The parental allowance will increase by 1.9%:

• Parental allowance (if the parent did not receive maternity benefit): €351.80
• Parental allowance (if the parent received maternity benefit): €482.30

Employee’s minimum health insurance contributions from 1 January 2025

An employee’s minimum health insurance contributions are:

• Monthly advance payment: €41.08
• Annual contributions: €493.17

OTHER FIGURES AFFECTED BY THE CHANGE IN THE SUBSISTENCE MINIMUM

The following will also change from 1 July 2024:

• Amount protected from enforcement: €383.58
• Early old-age pension amount required for entitlement: €438.40
• Maximum remuneration an unemployed person may receive without being removed from the register of jobseekers: €273.99

CONCLUSION

Changes to the subsistence minimum have a wide-ranging impact on social benefits, tax reliefs and other economic indicators. For more detailed information on how these changes will affect your particular circumstances, we recommend consulting an expert or contacting your accounting firm.