Outstanding wage and taxation of interest on late payments

If there is a delay in payment of wage, the employee is entitled to interest on late payments. As mentioned the Supreme Court of Czech Republic (decision 20 Cdo 2006/2011, as of 24.04.2013), these interests represent a further income which the employee receives in connection with dependant activities (employment). For this reason it is necessary to tax this income, in the same way as another employee´s wages, and pay social and health insurance. This fact must the employer keep in view most commonly in cases when he pays-out the wage to the employee on the basis of the judicial decision.