Travel allowances in Czechia — what to reimburse to employees and directors

When an employee or a director goes on a business trip — to a client meeting in another city, to a trade fair or to training — the company reimburses the expenses incurred. Under Czech law this is not a favour or a perk, but a statutory entitlement: travel allowances are governed by the Labour Code (Act No. 262/2006 Coll.) in its seventh part, and the employer must provide them, not merely may.

The allowances cover four categories of expense, each with its own rules. Some amounts — above all the meal allowance and the own-car reimbursement — are updated every year by a Ministry of Labour decree; for 2026 Decree No. 573/2025 Coll. applies, setting how much you are obliged to reimburse and what still stays exempt from tax.

What an employee is entitled to on a business trip

A business trip is a journey to a place outside the regular workplace to which the employer sends the employee. For the expenses incurred, the employee is entitled to reimbursement, which the law divides into four groups:

• Travel costs — transport there and back: a ticket, a flight or reimbursement for using an own vehicle.
• Meal allowance — a contribution to the increased cost of meals depending on the length of the trip.
• Accommodation costs — a hotel or overnight stay in the proven amount.
• Necessary incidental expenses — for example parking, a motorway toll sticker or a baggage fee.

Accommodation and incidental expenses are reimbursed in the actual amount proven by documents — you simply hand in the receipts. The meal allowance and the own-car reimbursement, by contrast, are calculated using the flat rates set by the decree mentioned above. Those are what we look at in more detail.

Meal allowance 2026 — by length of the trip

The meal allowance is a contribution to the increased cost of food during a trip, and its amount depends on how long the trip lasts. For 2026, in the private sector the employer must provide at least CZK 155 for a trip lasting 5 to 12 hours, at least CZK 236 for a trip longer than 12 and up to 18 hours, and at least CZK 370 once a trip exceeds 18 hours.

The word “at least” matters — the lower limit is mandatory, the upper one is not, so a company in the private sector may pay more. Example: an employee leaves at 7:00 for an all-day meeting and returns at 20:00, so the trip lasts thirteen hours and they are entitled to a meal allowance of at least CZK 236. If the company provides a free meal during the trip (for example a lunch included in the training fee), the meal allowance is reduced by the relevant part so that the same lunch is not reimbursed twice.

When an employee uses their own car

If they agree with the employer to use a private vehicle, they do not just get the petrol reimbursed. The reimbursement has two parts: the basic rate of CZK 5.90 per kilometre (CZK 1.60 for a motorcycle), which covers wear and tear on the car, and reimbursement for the fuel consumed. The latter is calculated from the consumption stated in the vehicle registration document and the average fuel price, which the decree also sets: for 2026 it is CZK 41.80 per litre of 95-octane petrol, CZK 39 for 98-octane, CZK 44.50 per litre of diesel and CZK 7.20 per kWh of electricity.

Example: for a 200 km business trip an employee uses their own car with a consumption of 6 litres of 95-octane petrol per 100 km. The basic reimbursement is 200 × 5.90 = CZK 1,180, they use 12 litres of fuel, which is 12 × 41.80 = roughly CZK 502. Together the company reimburses about CZK 1,682 — and the whole amount is exempt from tax for the employee. We covered the same rules on the logbook and fuel in our article on private use of a company car.

And what about a director?

For a director the starting point is different. A director is not an employee — they perform their office under a service agreement (smlouva o výkonu funkce), and so the entitlement to travel allowances does not arise automatically from the Labour Code. It arises only when it is expressly agreed in that agreement (or in a decision of the general meeting). If it is agreed, the director can draw allowances in the same scope and at the same rates as an employee.

For tax purposes the director is in fact treated the same way: their remuneration is income from dependent activity, so travel allowances up to the statutory limits are exempt from tax exactly as for an employee. That is precisely why it pays to think about travel allowances already when drafting the service agreement — otherwise a director who represents the company on trips has no legal claim to have their expenses reimbursed. We cover the taxation of the director's remuneration itself in a separate article on a director's remuneration in a Czech s.r.o.

Where allowances turn into taxable income

Travel allowances are exempt from tax for both an employee and a director and do not enter contributions — but only up to the statutory limits. A problem arises when the company pays more than the upper limit of the meal allowance for the public sector allows. For 2026 that is CZK 185 (5–12 h), CZK 284 (12–18 h) and CZK 442 (over 18 h); any amount paid above this ceiling becomes taxable income for the employee and is also subject to contributions.

The allowances must also correspond to an actual business trip and be backed up by a travel order and documents for accommodation and transport. Paying a flat “travel” amount without a real trip is not a travel allowance but hidden wages, which the tax authority will tax.

Conclusion

Travel allowances are not a voluntary perk but a statutory entitlement: the company reimburses the employee for transport, the meal allowance, accommodation and necessary incidental expenses, with the meal allowance starting at CZK 155 in 2026 and the own-car reimbursement at CZK 5.90 per kilometre plus fuel. A director is entitled to the same, but only if it is agreed in the service agreement. Anyone who keeps their travel orders and documents in order from the start — just like the companies in a carefully run house for just thirty companies — has nothing to worry about either when reimbursing trips or during an audit.

Frequently asked questions

How much is the meal allowance on a business trip in 2026?

In the private sector the employer must provide at least CZK 155 for a trip lasting 5 to 12 hours, at least CZK 236 for a trip of 12 to 18 hours, and at least CZK 370 for a trip over 18 hours. These are minimum amounts under Decree No. 573/2025 Coll., and the company may pay more. If the employer provides a free meal during the trip, the allowance is reduced by the relevant part.

How much does an employee get for using their own car?

The reimbursement has two parts — the basic rate of CZK 5.90 per kilometre (CZK 1.60 for a motorcycle), which covers wear and tear on the vehicle, and reimbursement for the fuel used. The latter is calculated from the consumption stated in the vehicle registration document and the average fuel price, which for 2026 is CZK 41.80 per litre of 95-octane petrol and CZK 44.50 per litre of diesel. Both parts are exempt from tax for the employee.

Is a director entitled to travel allowances?

Not automatically. A director is not an employee, and their entitlement to travel allowances must be agreed in the service agreement or approved by the general meeting. If it is agreed, the director draws allowances in the same scope and at the same rates as an employee and has them exempt from tax up to the statutory limits.