New legislation
The minimum social insurance contributions for self-employed persons could return to last year’s level. In its initial reading, the Chamber of Deputies supported the government coalition’s proposal, which stops the planned increase in the assessment base and reduces the minimum monthly advance from CZK 5 720 to CZK 5 005.
The social insurance contributions of the self-employed are thus highly unlikely to increase according to the rules introduced by the 2023 consolidation package, which envisaged a gradual increase in the minimum assessment base to 40% of the average wage. The amendment maintains the threshold at 35% of the average wage for this year, the same level as in the previous year.
As the amendment was not approved before the start of the year, self-employed workers paid higher advance payments in the first months. The draft provides for this and stipulates that the state will retroactively take these amounts into account as an overpayment, which will be returned to the sole traders after the annual settlement. The monthly saving on the minimum advance payment is CZK 715.
The coalition had originally sought approval of the proposal in the first reading, but this was not possible due to a veto by opposition clubs. The amendment will therefore head to the standard legislative process and committee discussions. If approved in the next readings, the lower advance payments will apply across the board to the main activity of self-employed persons; the minimum assessment base for secondary activities will remain unchanged.
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