In 2025, the flat rate for home office expense compensation will increase in the Czech Republic

The Czech Ministry of Labour and Social Affairs has prepared a regulation that specifies the exact amount of flat rate compensation for employees working remotely in 2025. The compensation will be set at CZK 4.80 per hour, which is approximately $0.20.

New regulations for remote work in the Czech Republic (often referred to as home office) have been in effect since October 2023. One of the key changes is the establishment of flat rate costs that employers are required to compensate employees for their home office expenses. 

The specific amount is determined by an order based on the price dynamics of relevant goods and services, as assessed by the Ministry of Labour. This flat rate is calculated using data on energy consumption and other costs per adult in an average household in the Czech Republic, according to statistics from the Czech Statistical Office.

For the remainder of 2023, after the introduction of these new rules, a fixed rate of CZK 4.60 per hour (approximately $0.19) has been set, while for 2024, it will be CZK 4.50 per hour (about $0.18).

The Ministry of Labour has now prepared a regulation for 2025, proposing to increase the fixed compensation rate to CZK 4.80 per hour (approximately $0.20). 

The costs included in this calculation of average consumption cover gas, electricity, solid fuel, central heating, hot water supply, tap water, wastewater disposal, and waste removal. The total amount is calculated based on data regarding the consumption of one adult in an average Czech household for one hour, according to the explanatory note accompanying the regulation. 

Flat rate compensation is an option, not an obligation. However, a one-time reimbursement of expenses is only available if it is agreed upon in writing (either individually or collectively) or defined by internal regulations. The second option is to reimburse expenses that are clearly incurred by the employee in connection with performing work in a home office setting.

Additionally, the employer and employee can agree that the employer will not cover any costs associated with remote work.

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https://www.podnikatel.cz/aktuality/pausalni-nahrada-nakladu-na-home-office-se-v-roce-2025-zvysi