An amendment to the Labour Code, effective from 01.10.2023, introduced compensation for so-called home office work, along with a related remote work agreement.
A remote work agreement means that, upon prior agreement with the employer, you will perform work from a location other than the employer's workplace. One of the key changes is that the remote work agreement must be concluded in writing, no later than 01.11.2023.
The conclusion of such a remote work agreement is linked to the right to reimbursement of costs for working from home. The employer is obliged to reimburse the employee for costs associated with remote work (costs for water, electricity, gas, internet, etc.). Reimbursement will most likely be handled through a flat-rate amount, as proving these costs would be fairly problematic. However, it is not excluded that reimbursement of actual costs may also be possible.
How to handle this in ABRA Flexi?
Wage components are available from version 2023.5.
Home office flat rate
The flat-rate allowance set by the decree of the Ministry of Labour and Social Affairs currently uses a rate of CZK 4.80 per hour of work from home (year 2025). Payments up to this amount are treated similarly to travel allowances within the limit from a tax perspective — i.e., they are exempt from tax and insurance contributions.
If a rate higher than CZK 4.80 is set (for 2025), the amount exceeding this limit is included in the assessment base for health insurance, social insurance, and income tax.
For 2026, the rate is CZK 4.70.
Records can be entered in Employees -> HR -> Permanent wage components - here, use the "New" button to add a new wage component "Home office flat rate" and fill in the date and amount per hour.
After entering the home office details in HR, you can proceed to Payroll Update. After opening the detail of a specific employee's payroll, you will find "Home office flat rate" under the basic wage tab.
Here you need to open the component detail and, as a user, enter the number of hours for the given month.
We then recommend performing a "payroll recalculation" using the button at the top of the page.
If a rate higher than CZK 4.80 (for 2025) that is not subject to tax is set, the amount is split into a taxable portion and a tax-exempt portion. The number of hours is not divided separately for home office within the limit and above the limit.
Home office – actual costs
This represents reimbursement of documented actual costs. The prerequisite for this component is that the employee worked from home for the entire month.
The wage component is exempt from tax and insurance contributions and is automatically applied to the payroll at the specified amount.
In the event of a future change, the component must be treated like any other permanent wage component — i.e., its validity must be terminated and a new component created with a new effective-from date.
Records can be entered in Employees -> HR -> Permanent wage components - here, use the "New" button to add a new wage component "Home office costs" and fill in the date and amount per month.
After entering the home office details in HR, you can proceed to Payroll Update and calculate the payroll for the given month. After opening the detail of a specific employee's payroll, you will find "Home office costs" under the basic wage tab.
Company settings and Home office
In order to generate payroll liabilities and internal documents after payroll processing and review, it is essential to define the document type for this wage component after recording home office details in employee HR records.
Company settings -
Company Agenda -> Settings -> Modules -> Employees -> Document types -> Internal document type "Home office within limit" - if you want a special document type for home office, you need to create it in internal document types and then attach it here.
Frequently Asked Questions
2, Allowances
3, Bonuses
4, Deductions