Be prepared! New Czech social security rules for the self-employed as of 1 January 2019

As of the new year, self-employed persons face changes concerning social security in the Czech Republic – i.e., in particular, the contributions paid for old-age pension, sick-leave, and health insurance.

As of the beginning of the new year, self-employed individuals face changes in the realm of social insurance. The biggest of these changes concern pension and sick-leave insurance, and have been brought about by an amendment to Act No. 589/1992 Coll., on social security contributions and the contribution to state employment policy.

Pension insurance

Self-employed persons whose business pursuit is their main source of income must pay in 2019 a monthly minimum payment on account towards their pension insurance in the amount of CZK 2 388, which is CZK 199 more than in 2018.

The preliminary premium payment for the given calendar month is newly payable between the first and the last day of the calendar month to which the payment relates. The premium payment made in January 2019 is considered a payment on account of that month (i.e., January 2019), even if that means that no payment was made for December 2018. In fact, if two payments are made in January 2019, then both will be considered to be a preliminary payment towards the contributions for 2019. The payment on account of December need not to be made at all, but may be made on a voluntary basis during the time period from 21 through 31 December 2018.

As of the new year, those among the self-employed who during the entire given calendar month drew sick-leave benefits, financial assistance during maternity, or a long-term care allowance will be exempt from the duty to make preliminary payments.

Sick-leave insurance

The minimum premium for voluntary sick-leave insurance rises to CZK 138 (compared to CZK 115 in 2018).

This minimum amount is derived from the assessment base for sick-leave insurance, which has been lifted to CZK 6000.

The sick-leave insurance premium is newly payable between the first and the last day of the calendar month to which the payment relates.

In order to avoid the cancellation of sick-leave insurance for December, one must make a payment of CZK 115, best during the period from 1 to 21 January 2019.

By the end of January, one must then pay the premium for the month of January 2019, at least in the amount of CZK 138 (which is the minimum amount for 2019).

Around the turn of the year, be sure to change the standard transfer order with your bank such that the payment of the sick-leave insurance premium for January 2019 goes through by the end of January.

Health insurance

As of 2019, the minimum health insurance premium payment, which is derived from the average wage (i.e., for 2018, CZK 32 699), will rise as well. The minimum monthly payment towards health insurance will thus be CZK 2 208 as of 1 January 2019.




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