http://cds.mfcr.cz/sys/cds/scripts/tiskopisy/tiskopisy-pdf2008/5405-1a_15.pdf 

http://www.praguepost.com/articles/2008/01/30/foreigners-panic-over-changes-in-tax-law.php

Most  important (source: articles above): claiming monthly tax relief of 2,070 CZK as a non Czech tax resident would be repealed; all employees are now to be treated as Czech tax residents.

http://prague.tv/articles/realestate/property-taxes-in-the-czech-republic

http://www.shell.com/home/content/euroshell-global-en/crt/existing_customers/existing_customers_czech_roadtax.html

http://www.shell.com/home/content/euroshell_crt_uk/our_services/road_services/es_czech_road_taxes_news_2311.html

(information written in german)

- 12.5% :social security and health contribution (details here )

- 12%-32% income tax (details here)

Gross salary – it’s usually the salary written in work contract. (plus any kind of salary bonuses, if it’s the case)

Netto salary – salary after tax deduction; money in hand.

Major changes came into effect on 1 January 2004 which would generally also require any foreign national working in the Czech Republic directly for a Czech company or an employer headquartered in a country with which the Czech Republic has concluded a social security agreement to pay the Czech mandatory health insurance and social security contributions. In these cases, employer contributions would also be required. Upon the accession of the Czech Republic to the EU in May 2004, any EU national working in the Czech Republic and their employer would also generally be required to pay the Czech social security and health insurance contributions unless otherwise exempt according to EU regulations.

Other income derived from a source in the Czech Republic is taxed through a personal tax return that should be filed with the relevant Tax Authority within 3 months after the end of the tax period (a 3-month extension may be granted if the tax return is prepared by a qualified tax adviser).

Source:

In addition, we would draw to your attention the following:

• Need to apply for work permits (only applies to non-EU nationals).
• Need to apply for residency permits. (In the case of EU nationals, they are entitled but not obliged to apply for a residence permit, but must only prove the purpose of stay, for example employment contract, or contract showing appointment as a director of a company ‘jednatel’ in Czech).
• Need to notify local Labour Office about their employment (also EU nationals).
• If the foreign staff have other taxable income, there might be a need to prepare year-end personal tax returns if they spend more than 183 days in the Czech Republic or are habitually domiciled here.
• Certain benefits provided by the Czech company such as accommodation, meal allowances during business travel exceeding statutory limits, school fees for children etc. would not be allowable for Czech tax purposes

Source:

Gross salary =  salary according to work contract + any salary bonuses, if the case

Taxes deducted/ retained from  gross salary = Health insurance+ social charges+ tax income

Netto salary (money in hand) = Gross salary – Taxes deducted.

Below is a table regarding aproximative salary calculation. For euro conversion, I estimated 1 EUR= 28 czk.

You can also check  these czeck links for salary calculation: 

http://www.penize.cz/nastroje/kalk/dane_zam_rodinna_2007.asp

http://www.finance.cz/dane-a-mzda/financni-kalkulacky/mzda-po-reformach/

http://www.clanbrandon.co.uk/dane.php?net=22000&rebate1=600&kids=0&depspouse=350£rate=39.5586&eurorate=27.4941&dollarrate=19.8398&Submit=Submit

—

Missions Abroad

http://aa.ecn.cz/img_upload/d5113ff636cd588fdf5da86513c81811/Bydleni_v_najmu.pdf

Note: only few czechs look for a rented apartment on the free market, because this type of accomodation is very expensive for them. Czechs usually pay a symbolic fee to the Czech government as a rent. 

Kindly please find below the Bible of your rights and duties as an employee in Czech Republic:

http://www.mpsv.cz/files/clanky/3221/labour_code.pdf

Source.

An individual pays tax on his income as a wage earner or as a self-employed person. A foreign resident who is employed in the Czech Republic pays tax only on income earned in the Republic. An employer is bound to deduct, immediately on a monthly basis, the requisite tax from employees salaries.

Czech Republic Individual income tax rates 2007

The statistical results from September 2005 show that the average wage in the country is CZK 18,833. In comparison to the year 2004, after the influence of inflation, the average wage grew 4.2%.

The average wage in the commercial sector is currently nearly the same as that of the state sector, which had the quickest growth during the year. Employees of private companies earn on average CZK 18,930 per month; state employees average CZK 18,497.

Detailed statistics show that two-thirds of employees don’t reach the average wage.

Employees in the technical fields and financial mediation have the highest wages. On the other hand, workers in the agriculture and textile industries have the lowest.

Source

COMMENTS:

19000 czk average salary is gross salary, before taxes. It is said that the real average salary in CZ is somewhere around 14-15000 czk gross salary. The reason is that statistics take into account salaries in Prague, the capital city of CZ; in Prague salary ranges are 10%-15% higher than in the rest of the country. Also, one should keep on mind what statistics show: two-thirds of employees don’t reach the average wage.

- costs living

- salary ranges

- salary calculation

- details about work contract