According to Act No. 435/2004 Col. on Employment 4 % of employees of any employer with 25 and more employees must be handicapped persons.
The law defines three ways employer can comply with this Act:
1) Direct employment of handicapped persons
- Direct compliance with this obligation for large and medium size firms means that 4 % of their employees must be handicapped.
2) Purchasing products, services and contracting an order
- Providers include protected work-shops, civic associations, not-for-profit organizations and employees with ratio of handicapped employees exceeding 50 %.
- Number of persons a company can be credited for depends on the volume of purchased services and the average wage; purchasing goods for the price equal to seven times the average wage the company is credited with facultative compensation for one handicapped employee.
- This type of fulfillment is used more and more frequently because it often has the nature of standard business relationship with the advantage of automatic fulfillment of the legal requirement.
3) Payment to the state’s budget
- This payment is also known as “handicapped tax”.
- The amount to be paid is 2.5 times the average wage per person.
Example:
If your company employs 25 persons you must do one of the following:
- Employ one handicapped person.
- Purchase goods and services in the amount of CZK 166,082 without VAT every year from an organization, which is entitled to provide facultative compensation.
- Pay to the state’s budget c. CZK 59,315; 2.5 times the average wage.
The value of goods and services that must be purchased by the company is calculated as follows (compensation for 1 person an employer must employ):
- Average monthly wage in the Czech Republic in the first three quarters of the previous year times 7 (average monthly wage in 2011 was 23,726×7 = 166,082 CZK / calendar year).
Payment to the state’s budget is calculated as follows:
- Average monthly wage in the Czech Republic in the first three quarters of the previous year times 2.5 (average monthly wage in 2011 was 23,726×2.5 = 59,315 CZK / calendar year); this payment must be made by the employer by February 15th of the following year via the Bureau of Labor.
Calculator for facultative compensation:
Here you can download excel file with the calculator (CZ only).
Here you can download 2011 declaration confirming that we employ handicapped persons (CZ only).