Starting from 2026, tax reliefs for voluntary health insurance (VHI) for employers are being reduced. From January, EUR 350 of employer-paid VHI per employee is tax-free. Any excess is considered taxable employment income and subject to personal income tax. Before 2026, employer VHI premiums on behalf of employees, combined with life insurance and pension payments, were exempt from tax if they did not exceed 25% of the annual employment income. The aim of the reform is to widen the tax base, provide consistent defence funding, and enhance equity by limiting excessive tax incentives for higher earnings and large enterprises. The EUR 350 cap was portrayed as a targeted incentive to maintain VHI support, minimize regressive subsidies, and align health-related tax spending with other social priorities.
This is part of broader changes that affect all insurance schemes (except mandatory vehicle insurance), which became a subject to earmarked state security tax of 10% of the annual insurance premium.