Superhrubá

Superhrubá mzda is a Czech term for the wage base used to calculate personal income tax. It represents the employee’s gross wage plus mandatory employer contributions to social security and health insurance, reflecting the total cost of employment to the employer. The concept was introduced in the 2007 tax reform and remains a standard part of payroll calculations and tax administration.

To determine the tax base, the superhrubá mzda is used as the amount on which personal income tax is applied. The tax is calculated according to the applicable rates (a progressive structure with a lower rate up to a threshold and a higher rate on the excess), and then tax credits such as the basic personal allowance are subtracted to arrive at the final tax payable.

In practice, the inclusion of employer contributions in the base explains why tax appears to be computed on a larger figure than the employee’s gross wage. This approach has shaped payroll processes and payroll cost planning for both employers and employees.

The concept continues to be referenced in Czech tax law and payroll practice, though specific rates, thresholds, and credits are subject to legislative changes.