Czechia: Changes regarding social security payments related to agreements on the performance of work, as of 1 July 2024

Will the first day of summer recess mark fundamental changes concerning the social security payments under the so-called DPP work arrangements? What other obligations await employers who have hired DPP staff?

As of 1 July 2024, there will be a change in law concerning the labor-law agreement known as the “agreement to complete a job”, a special, less stringent type of contract for hiring e.g. students, temp workers, etc., usually abbreviated “DPP”. More specifically, the law in question actually suspends a rule that was previously supposed to come into force as at 1 July 2024 in accordance with the government package of measures to consolidate public finances. This means that the social security contributions to be paid under DPP arrangements will continue to be governed by today’s provisions. However, employers who have concluded DPPs with their staff will newly be subject to a registration and reporting duty. The said change concerning the payment of social security contributions will come into force only on 1 January 2025.

Employers must notify the social security administration (ČSSZ) of any newly hired DPP workers as part of their monthly reporting, by the 20th of the following month. Existing staff members for whom no notification was made must be registered in this manner by 20 August 2024. Employers can use an electronic standard form to report the beginning and end of such work relationships. If the employer itself was not yet registered with ČSSZ, it must sign up for the employers register by 30 July 2024.

Going forward, employers must also file new monthly electronic reports for each worker with whom a DPP was concluded, to individually disclose the worker’s earnings as accounted for by this employer. This duty also extends to workers who have not become subject to the social security scheme, and to workers who generated no income at all in the given month.
The monthly report for each worker under DPP shall comprise the first and last name and the so-called “birth number” (personal identification number) of the worker, their health insurer, the beginning and end of their working relation with the employer, and their earnings in the given month.

CSSZ (Czech Social Security Authority), Act No. 163/2024 Coll.

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