What is Act of the Czech National Council No. 589 / 1992 Coll.?

Act of the Czech National Council No. 589 / 1992 Coll., on Social Insurance and Contribution to State Employment Policy — Act of the Czech National Council on Social Security and Contribution to State Employment Policy.

Is Act of the Czech National Council No. 589 / 1992 Coll. still valid?

Yes, Act of the Czech National Council No. 589 / 1992 Coll. is still valid and effective.

Act of the Czech National Council No. 589 / 1992 Coll. - Act of the Czech National Council on Soc...

Q: When it became Act of the Czech National Council No. 589 / 1992 Coll. effectiveness?

Act of the Czech National Council No. 589 / 1992 Coll. became effective 01.01.1993.

589

THE LAW

Czech National Council

of 20 November 1992

on social security contributions and contributions to national employment policy

The Czech National Council decided on this law:

§ 1

(1) This law regulates social security contributions, which include pension and sickness insurance premiums, and a contribution to state employment policy ("insurance ').

(2) This law applies to legal relationships which are not covered by the directly applicable European Union law in the field of insurance 76).

§ 2

The insurance is the income of the state budget. The income of the State budget is also penalty payments (§ 20), the premium on social security contributions (§ 21) and fines (§ 25c and 25d) imposed under this law. The pension insurance is carried out in a separate state budget account and the State Budget Act sets out as a separate item of state budget income.

§ 3

Charges

(1) The insurance premiums are payable to the extent and under the conditions laid down in paragraphs 2 and 3 by the following taxpayers:

(a) employers who, for the purposes of this Act, are legal or natural persons who employ at least one employee, the organisational units of the State in which workers are assigned to work or are engaged under an agreement on work or employment, and the service offices in which civil servants are assigned to perform State service (1);

(b) staff covered for the purposes of this Act:

1. staff in employment; for the purposes of this Act, a person who is active in an employment relationship but does not have an employment relationship shall also be regarded as having an employment relationship, since all the conditions laid down in the labour law governing its establishment have not been fulfilled,

2. Workers working under an agreement on work and workers working under an agreement on work,

3. members of the cooperative, if outside the employment relationship they work for the cooperative;

4. natural persons appointed or elected under a special law as Head of Administration or as a statutory body of a legal person established by a special law, or, where applicable, as a representative of that management or statutory authority, if that management or statutory body is only one person and no employment or service relationship has been established by appointment or election of such persons and natural persons who, under the special law, perform public functions outside the employment or employment relationship, provided that their employment relationship is covered by the Labour Code within the specified scope and are not listed in points 5 to 8 and 18;

5. Judges,

6. Members of the Chamber of Deputies and Senators of the Senate of Parliament,

7. members of the representatives of the local authorities and of the municipal or urban districts of the territorial subdivided statutory cities and the capital city of Prague, elected to the functions designated by the council as the functions for which the members of the council will be released;

8. Members of the Government, President, Vice President and Members of the Supreme Audit Office, members of the Broadcasting Council, members of the Energy Regulatory Board, members of the Council of the Institute for the Study of Totalitarian Procedures, members of the Council of the Czech Telecommunications Office, the Financial Arbiter, the representative of the Financial Arbiter and the Ombudsman, the Ombudsman of children and their representatives,

9. volunteer staff of the care service,

10. childcare persons and persons who are kept in the register of persons who may pursue foster care for a transitional period, provided that they are paid a foster child's remuneration under the Social Protection Act 1c),

11. persons in the execution of a prison sentence in employment and persons in the exercise of a security detention in employment,

12. civil servants under the Civil Service Act,

13. workers in a working relationship concluded under foreign law,

14. Associates and agents of a limited liability company and commanditists of a limited partnership, if they are working for it outside the employment relationship and directors of a community of general interest, if they are working for it outside the employment relationship,

15.

16. members of the collective bodies of a legal entity not listed in points 1 to 3, 5 to 8, 13, 18 and 19;

17. liquidators,

18. Head of the organisational units of the legal entity referred to in § 23b (2) second sentence, whose place of work is permanently in the Czech Republic,

19. Persons entrusted with the commercial management by contract,

20. natural persons not listed in points 1 to 19, with the exception of the members of the District Electoral Commission and the Special District Electoral Commission and the members of the Councils of the Territorial Authority and of the City or City Councils of the Territorial Territorial Territories of the Statutory Cities and of the Capital City of Prague chosen for functions not designated by the Council as positions for which the members of the Assembly will be released,

at the time of employment under the sickness insurance law, if they are subject to or could be subject to income from dependent activities, which, if they were subject to taxation in the Czech Republic, are subject to income tax under the Income Tax Act and are not exempt from that tax.

(2) Employers shall be liable for sickness insurance premiums, pension insurance premiums and national employment policy contributions provided that they employ the staff referred to in paragraph 3.

(3) Staff members shall be liable for sickness insurance premiums and pension insurance premiums, if they are staff members of sickness insurance under sickness insurance rules (1e); a natural person shall also be considered to be such a staff member who, after the termination of the employment giving rise to the sickness insurance, has been charged income from that employment, which is attributable to the assessment basis.

(4) Self-employed persons are required to pay pension insurance premiums and a contribution to the state employment policy if they participate in pension insurance under the pension rules, 2) and, under the conditions laid down by this law, also advances on pension insurance premiums and a contribution to the state employment policy; self-employed persons are required to pay sickness insurance if they participate in sickness insurance under the sickness insurance rules. If a self-employed person is considered to be a self-employed person and when a self-employed person is considered to be the principal self-employed person and secondary self-employed person, the Pension Insurance Act shall be established. 52)

(5) Persons voluntarily participating in pension insurance (53) are required to pay pension insurance premiums for the period of voluntary participation in pension insurance.

(6) Foreign workers are required to pay sickness insurance premiums during their voluntary participation. For the purposes of this Act, a foreign employee shall mean an employer whose registered office is in the territory of a State with which the Czech Republic has not concluded an international social security agreement, if he is active in the Czech Republic for the benefit of that employer.

§ 4

Insurance

The amount of the premium shall be determined at the percentage of the assessment base established for the relevant period.

Measurement basis

§ 5

(1) The basis of the staff member's assessment is the total of income, with the exception of the reimbursement of expenses provided by a percentage of the salary base to representatives of the State and certain state authorities and judges), which, if they were subject to taxation in the Czech Republic, are subject to or would be subject to a personal income tax under the Income Tax Act (3) and are not exempt from this tax and which the employer has settled for them in respect of a job which constitutes a sickness insurance contribution. For the purposes of the first sentence, the revenue to be charged shall be that which, in monetary or non-monetary form or in the form of an advantage, has been provided by or for the benefit of the employer to the employer, where appropriate credited to his benefit or consists of another form of performance by the employer for the employee.

(2) The following revenue shall not be included in the staff member's assessment base on the revenue referred to in paragraph 1:

(a) compensation under the Labour Code and the legislation governing employment conditions;

(b) severance grants and other severance grants, severance grants and severance grants for which entitlement has been acquired under special legislation and remuneration at the end of the term of office to which entitlement has been granted under special legislation;

(c) Loyalty allowance for miners 5),

(d) the performance which has been paid to the beneficiary of an old-age pension or invalidity pension for third-degree invalidity after one year from the date of termination of employment;

(e) one-off social assistance provided to staff to bridge their extremely difficult circumstances arising from natural disasters, fires, environmental or industrial accidents or other extremely serious events.

(3) The wage entitlements of employees paid by the Office of Labour of the Czech Republic - the regional branch or, where applicable, the branch for the capital city of Prague (hereinafter referred to as the "Regional branch of the Labour Office") under the Act on the Protection of Employees in the Insolvency of the Employee and on the amendment of certain laws are considered to be the income charged by the Employee to the extent that the Employee has not charged them to employees.

(4) The provisions of paragraph 2 shall apply mutatis mutandis to the determination of the basis of assessment of the worker's employment contract concluded under foreign law. If a staff member is considered to be a contract employee under the sickness insurance law 10c), his assessment basis is the income charged to him by the contract employer (§ 23b (2)); where the contract staff member is paid income through his employer whose registered office is in the territory of a State with which the Czech Republic has not concluded an international social security contract, the assessment basis of the contract staff member shall be deemed to be the income paid by the contract employer to a foreign employer, which, in the event that the contract employer pays to a foreign employer, shall be reduced by a maximum of 40%.

(5) If staff members are paid income in foreign currency, they shall be converted into Czech currency at the foreign exchange market rate fixed by the Czech National Bank, which shall apply on the last day of the calendar month for which the premium is paid. For the conversion of currencies where the Czech National Bank does not declare this course, the exchange rate usually used by banks in the Czech Republic on the date mentioned in the first sentence shall be used; These banks are required to communicate this course at the request of the employer and the local social security administration. The course used by the employer in accordance with the first and second sentences is required to keep in his records for the determination and payment of insurance premiums.

(6) A staff member who, under the Labour Code, is not entitled to compensation for salary or leave pay to the extent that he is entitled to such compensation under the legislation of the Member State of the European Union to which the staff member was established (78) shall be included in the assessment basis, including compensation for salary or leave pay, in the amount to which such compensation would be due under the Labour Code, even if it was not accounted for by the employer; where the compensation of a salary or holiday salary due under the legislation of a Member State is higher than that which would have been due under the Labour Code, the assessment basis of the staff member shall include the difference between those allowances in the calendar month in which the difference was established.

(7) The performance referred to in the second sentence of paragraph 1 which has been credited by the employer to the employee in the event of the acquisition of a holding in a commercial corporation which is his employer or which is a parent or subsidiary of that employer or a capital linked to that employer under the Income Tax Act or an option to acquire that holding shall be considered to be a cleared income in the calendar month in which the income is considered to be cleared under Article 6 (14) and (17) of the Income Tax Act; If the employer has reduced this income in accordance with Section 6 (15) of the Income Tax Act, the reduced income shall be considered to be the revenue charged.

§ 5a

(1) The employer's assessment basis is:

(a) an amount corresponding to the total of the assessment bases of its staff referred to in Article 3 (3) who are not engaged in a risk-based job under Section 37d (2) of the Pension Insurance Act (hereinafter referred to as "risk-based employment") or the activity of a member of the medical rescue services group, an operator of the medical operating centre and an auxiliary operating centre of the medical and mountain rescue services (hereinafter referred to as "the medical paramedic") or a member of the fire brigade of the firm;

(b) an amount corresponding to the sum of the assessment bases of its staff referred to in Article 3 (3), which carry out the activities of a medical paramedic or a member of a fire brigade of an undertaking;

(c) the amount corresponding to the total of the assessment bases of its staff referred to in Article 3 (3) who are engaged in a risk job.

(2) Where, in a calendar month, the staff member, in addition to the risk employment or the activity of a medical paramedic or a member of a firefighter's unit of an undertaking, performs other activities, the assessment basis of that staff member shall be allocated for the purposes of paragraph 1, according to the number of hours worked in the calendar month, to the proportion corresponding to the hours worked in which he was engaged in the risk employment or the activity of the medical examiner or a member of the firefighter's unit of the undertaking, and to the proportion corresponding to the hours worked in which he was engaged in other activities. If the staff member has no hours worked in the calendar month, his assessment basis for that calendar month shall be broken down in proportion in accordance with the first sentence according to the number of hours worked in the next preceding calendar month. For the purposes of paragraph 1 (a), the proportion of the assessment base of that staff member shall be rounded down to the whole crown and, for the purposes of paragraph 1 (b) and (c), rounded up to the whole crown.

(3) For the purposes of paragraphs 1 and 2, a staff member who carries out a risk-free job or the activity of a medical paramedic or a member of a fire brigade of an undertaking shall be deemed not to carry out such activities in a calendar month, provided that his employer has incurred an obligation to pay a compulsory contribution to the employee's old-age savings product under the Old-age Savings Scheme Act.

§ 5b

(1) The assessment basis of the self-employed person for pension insurance premiums and the contribution to the State employment policy is the amount determined by that person, which is at least 50% of the tax base before 2024 and 55% of the tax base since 2024; For the purposes of this Act, the tax base is the income tax sub-base of a separate activity under the Income Tax Act, which, if subject to taxation in the Czech Republic, is or would be subject to a personal income tax. Where a self-employed person in a calendar year has carried out both the main self-employed activity and the secondary self-employed activity, and for the period during which he has carried out the secondary self-employed activity, he shall not participate in pension insurance, the tax base shall be considered to be a proportion of the tax base; that part shall be determined by dividing the tax base by the number of calendar months in which the self-employed activity was carried out for at least part of the month and the resulting amount shall be multiplied by the number of calendar months in which the main self-employed activity was carried out for at least part of the month. For the purposes of the second sentence, a calendar month in which the self-employed person has been entitled to the payment of sickness, maternity or long-term medical care from the sickness insurance of self-employed persons shall not be considered as self-employed activities and the main self-employed activity; For the purposes of the part of the sentence in front of the semicolon, the calendar month shall mean the part of the sentence in respect of which the self-employed person has been self-employed, unless the pursuit of that activity has lasted for a full calendar month.

(2) The assessment basis of a self-employed person for pension insurance premiums and the contribution to the state employment policy shall be at least as low as the self-employed person in the calendar year.

(a) only the principal self-employed activity, the product of the lowest monthly assessment basis established in accordance with the first or second sentence of Article 14 (5) and applicable for the calendar year for which the assessment basis is fixed, and the number of calendar months of that calendar year in which the main self-employed activity was pursued for at least part of the calendar month. This number of calendar months shall not include the calendar months in which the self-employed person engaged in the main self-employed activity has been entitled to the payment of sickness, maternity or long-term medical care from the sickness insurance of self-employed persons; the calendar month for the purposes of part of the sentence before the semicolon shall mean the part of the period during which the self-employed person was engaged in the principal self-employed activity, unless the pursuit of that activity lasted for the full calendar month;

(b) only the secondary self-employment activity and, for the duration of that activity, the pension insurance component, the product of the lowest monthly assessment basis established in accordance with the third sentence of Paragraph 14 (5) and applicable for the calendar year for which the assessment basis is fixed, and the number of calendar months of that calendar year in which the secondary self-employment activity was carried out for at least part of the calendar month. This number of calendar months shall not include the calendar months in which the self-employed person carrying out the secondary self-employment activity has been entitled to the payment of sickness, maternity or long-term nursing allowance from the sickness insurance of self-employed persons; For the purposes of part of the sentence before the semicolon, the calendar month shall mean the part of the period during which the self-employed person was engaged in a secondary self-employed activity, unless the pursuit of that activity lasted for the full calendar month. In the case of an old-age pensioner or an invalidity pension for a third-degree invalidity, for the purposes of this Act, the period during which that pensioner was entitled to the sickness benefit from the sickness insurance of self-employed persons shall also mean the period of temporary incapacity for work after the end of the period of support for the provision of sickness insurance provided for by sickness insurance rules,

(c) the main self-employed activity and the secondary self-employed activity, and, for the duration of the secondary self-employed activity, shall participate in pension insurance, the sum of the partial assessment base on the main self-employed activity and the partial assessment basis on the secondary self-employed activity, or the sum of the partial assessment base on the main self-employed activity and the proportion of the assessment base on the income from the secondary self-employed activity; the highest of these totals shall be considered as the lowest assessment basis. The sub-assessment basis on the main self-employment shall be determined as the product of the lowest monthly assessment base established in accordance with the first or second sentence of Paragraph 14 (5) and the number of calendar months in which the main self-employment activity has been pursued for at least part of the month; the calendar months referred to in point (a) of the second sentence shall not be included in that number. The sub-assessment basis for secondary self-employment shall be determined as the product of the lowest monthly assessment base established in accordance with the third sentence of Paragraph 14 (5) and the number of calendar months in which the secondary self-employment activity has been carried out for at least part of the month; the calendar months referred to in point (b) of the second and third sentences shall not be included in that number. The proportion of the assessment base on income from secondary self-employment shall be determined by the percentage referred to in the first sentence of paragraph 1 by dividing the tax base reached in the calendar year by the number of calendar months in which the self-employed activity was carried out for at least part of the month and multiplied by the number of calendar months in which the secondary self-employed activity was carried out for at least part of the month; the provisions of paragraph 1 of the third sentence shall apply mutatis mutandis.

(3) The assessment basis of a self-employed person whose income tax is equal to the flat-rate tax shall be the product of the monthly assessment basis for the flat-rate scheme zone under which the flat-rate tax, established in accordance with Article 14 (3), applicable for the calendar year for which the assessment basis is fixed and the number of calendar months of that calendar year in which the self-employed person was a taxpayer in the flat-rate scheme.

(4) The assessment basis of a self-employed person for sickness insurance premiums shall be the monthly basis determined by the self-employed person. However, the monthly base may not be less than twice the amount applicable under the sickness insurance rules for the participation of staff in the sickness insurance scheme 58a). However, the maximum monthly base may not be higher than the amount equal to the average which of the basis of assessment determined or calculated in accordance with Paragraph 5b (1) per calendar year for the last survey referred to in Article 15 shall be one calendar month in which the self-employed activity has been carried out for at least part of that month; the second sentence also applies here. The maximum monthly base determined in accordance with the third sentence shall apply from the month following the month in which the summary referred to in Article 15 (1) was submitted for the preceding calendar year, until the month in the following calendar year in which that summary was or should have been submitted; if, according to this summary submitted in the following calendar year, the maximum monthly base is higher than the current maximum monthly base, the maximum monthly base according to this summary shall apply as from the month in which that summary was submitted. Where the summary referred to in Article 15 (1) has been submitted late, the monthly basis for the month following the month in which the summary was to be submitted shall be set at twice the amount applicable under the sickness insurance rules for the participation of staff in sickness insurance. The list provided for in Article 15 for a calendar year more than 3 years before the calendar year in which the insurance premiums are paid shall not be taken into account. If the maximum monthly base cannot be determined in accordance with the third sentence, the maximum monthly base shall be half of the average wage for the calendar months of the calendar year in which the self-employed person began to pursue the self-employed activity and, in the following calendar year, for the calendar months ending in the calendar month in which the summary referred to in Article 15 (1) was or should have been presented. In the event of the payment of sickness insurance premiums pursuant to Article 14c (5), sickness insurance premiums shall be determined on a monthly basis equal to twice the amount applicable under the sickness insurance rules for the participation of staff in sickness insurance. If, in the calendar year in which the self-employed person began a self-employed activity, he did not pursue it in at least four calendar months, he shall determine in the following calendar year the monthly basis as if he had started the self-employed activity in that year; This shall be done in the calendar year following the calendar year referred to in the part of the sentence before the semicolon, up to the calendar month in which the self-employed person submitted or was to provide an overview in accordance with Article 15 (1). The monthly basis of a self-employed person who is a taxpayer in a flat-rate scheme may not be less than twice the amount applicable under the sickness insurance rules for the participation of employees in sickness insurance and higher than the monthly basis of assessment of a self-employed person who is a taxpayer in the selected flat-rate scheme.

§ 5c

(1) The assessment basis of a person voluntarily participating in a pension insurance scheme shall be the amount to be determined but not less than one quarter of the average wage in force in the calendar year in which the pension insurance is paid.

(2) The assessment basis for a foreign worker for sickness insurance premiums is the amount to be determined. However, this amount may not be less than twice the amount applicable under the sickness insurance rules for the participation of staff members in sickness insurance and higher than the amount which a foreign employee as a person voluntarily participating in pension insurance has designated under paragraph 1.

§ 5d

The assessment bases according to § 5 to 5c are rounded up to the whole crown.

§ 6

Applicable period

(1) The relevant period for determining the basis of assessment is the calendar month for which the premium is paid, unless otherwise specified.

(2) In the case of a self-employed person, the period from which the assessment basis for pension and national employment policy contributions is to be determined is the calendar year for which the insurance and contribution are paid.

§ 7

Rates of premiums

(1) The premium rates are:

(a) for the employer, 24,8% of the assessment basis established under Paragraph 5a (1) (a), of which 2,1% for sickness insurance, 21,5% for pension insurance and 1,2% for national employment policy;

(b) the employer:

1. in 2023 26,8% of the assessment base established in accordance with Paragraph 5a (1) (b), of which 2,1% for sickness insurance, 23,5% for pension insurance and 1,2% for national employment policy,

2. in 2024 27,8% of the assessment base established under Article 5a (1) (b), of which 2,1% for sickness insurance, 24,5% for pension insurance and 1,2% for national employment policy,

3. in 2025, 28,8% of the assessment base established under Paragraph 5a (1) (b), of which 2,1% for sickness insurance, 25,5% for pension insurance and 1,2% for national employment policy,

4. starting in 2026, 29,8% of the assessment base established pursuant to Paragraph 5a (1) (b), of which 2,1% for sickness insurance, 26,5% for pension insurance and 1,2% for national employment policy,

(c) with the employer

1. in 2025 26,8% of the assessment base established in accordance with Article 5a (1) (c), of which 2,1% for sickness insurance, 23,5% for pension insurance and 1,2% for national employment policy,

2. in 2026 27,8% of the assessment base established under Paragraph 5a (1) (c), of which 2,1% for sickness insurance, 24,5% for pension insurance and 1,2% for state employment policy,

3. in 2027, 28,8% of the assessment base established under Paragraph 5a (1) (c), of which 2,1% for sickness insurance, 25,5% for pension insurance and 1,2% for national employment policy,

4. starting in 2028, 29,8% of the assessment base established in accordance with Article 5a (1) (c), of which 2,1% for sickness insurance, 26,5% for pension insurance and 1,2% for national employment policy,

(d) for an employee, 7,1% of the basis of assessment, of which 0,6% for sickness insurance and 6,5% for pension insurance,

(e) for self-employed persons

1. 29,2% of the assessment base established under Article 5b (1) to (3), of which 28% for pension insurance and 1,2% for state employment policy, if it is a self-employed person participating in pension insurance,

2. 2,7% of the assessment base established in accordance with Paragraph 5b (4), if the self-employed person is involved in sickness insurance,

(f) for a person voluntarily participating in pension insurance, 28% of the assessment basis;

(g) for a foreign employee 2,7% of the assessment base.

(2) The rate of the premium applicable on 1 January of the calendar year in which the pension insurance is paid shall be used to determine the pension insurance premiums paid by the person voluntarily participating in the pension insurance for the period preceding the calendar year in which the insurance is paid.

(3) The insurance is rounded to the top of the crown.

Discount on the insurance employer for employees

§ 7a

(1) The employer shall be entitled to a reduction in the insurance premiums per calendar month for the staff member in the employment or service relationship who:

(a) it has reached at least 55 years;

(b) care for a child under 10 years of age, of whom he is a parent, or who is under the care of the parent by decision of the competent authority; the decision of the competent authority is deemed to be the decision referred to in Section 7 (10) of the State Social Aid Act;

(c) care for a person who is less than 10 years old who is dependent on the assistance of another person in stage I (light dependence) or a person close to the person who is dependent on the assistance of another person in stage II (moderate dependence) or stage III (heavy dependence) or stage IV (total dependence); the person close is assessed in accordance with Section 24 (1) of the Pension Insurance Act,

(d) prepare for a future profession of study and are under 26 years of age; the study is assessed in accordance with § 21 (1) (a), § 22 and 23 of the Pension Insurance Act,

(e) in the 12 calendar months preceding the calendar month for which the premium is applied, he has entered as a candidate for retraining under § 109 or 109a of the Employment Act;

(f) is a disabled person under Section 67 (2) of the Employment Act; or

(g) is under 21 years of age.

(2) The condition for entitlement to a premium shall be that the staff member referred to in points (a) to (f) of paragraph 1 is granted shorter working or service periods than those laid down in the weekly working or service periods, the extent of which the shorter working or service periods so agreed shall be at least 8 hours and not more than 30 hours per week. If the staff member carries out more than one job with the same employer in employment or service relationship, the premium shall be paid on one job only; the limit of the number of hours referred to in the first sentence applies to all these jobs together.

(3) The discount on the employee's premiums does not apply if:

(a) the total of the staff member's assessment bases for all employment performed in employment or in service with the same employer per calendar month is more than 1,5 times the average wage; this amount of the average wage is rounded up to the whole crown,

(b) the total of the staff member's assessment bases for all employment in employment or employment with the same employer, amounting to 1 hour of the total hours worked for all such employment in a calendar month, shall be higher than 1,15% of the average wage; the sum of the assessment bases per hour and this amount of the average wage shall be rounded up to the whole crown. An hour worked shall also be deemed to be the hour for which, under special legislation, compensation for wages or salaries is due and the hour for which the deductible income is paid for the period of leave of employment or service, which replaces the loss of income in the amount of the average earnings or salary or salary that would have been due for the period of such leave,

(c) the period worked in the employment or service relationship of the staff member referred to in points (a) to (f) of paragraph 1 from all employment to the same employer, including periods considered to be the work or service under the Labour Code or the legislation governing the service, shall exceed 138 hours for the same employer in a calendar month; If the full calendar month of employment does not last, this limit shall be adjusted in proportion to the number of calendar days of employment in the calendar month and the number of calendar days in the calendar month, with the result rounded up to the nearest hour,

(d) the employee referred to in paragraph 1 (f) is in employment with an employer recognised as being an employer in a protected labour market under Paragraph 78 of the Employment Act, if the insurance premium would be applied by that employer; or

(e) the staff member shall be given a monthly overview of the cost of compensation for the staff members' salaries for claiming payment of the allowance at the time of partial work under Section 120e (5) of the Employment Act.

(4) A premium may be granted per calendar month for the same employee to only one employer.

(5) The discount on the employee's premiums is for the employer only if, at the latest with the application of this discount, the Czech Social Security Administration has notified the intention to apply this discount to that employee; notification of this intention means the moment of its delivery to the Czech Social Security Administration. The intention to apply a premium on an individual employee may be notified by the employer not earlier than 1 month before the date on which the premium on that employee will be applied, but not before the date on which the notification of the employee's recruitment under the sickness insurance law was submitted. If the same employee intends to apply a discount on the insurance of several employers, the premium on the insurance of that employee belongs to the employer who notified the Czech Social Security Administration of this intention first.

§ 7b

(1) The amount of the allowance per employee per calendar month is 5% of the total of the assessment bases of the employees to which the discount is applied pursuant to § 7a. The premium discount is rounded up to the whole crown.

(2) Where a staff member carries out more than one job with the same employer, that staff member shall be included in the total of the assessment bases of the staff member referred to in paragraph 1 only on the basis of the employment from which the employer applies a discount.

(3) If there are several reasons for applying the premium rebate provided for in Section 7a (1) for the employee, the employer may apply the premium for the individual employee in the calendar month only once.

(4) The conditions for applying the premium shall be fulfilled for the staff member for whom the premium may be applied throughout the period of employment or service in the calendar month.

§ 7c

(1) The employer applies a discount on the employee's premiums per calendar month by means of a single monthly report under the Single Monthly Reporting Act ("Single Monthly Reporting"). The discount on insurance premiums shall be deducted by the employer from the amount of the premiums determined in accordance with Sections 5a and 7 (1) (a) to (c) for this calendar month.

(2) The premium discount may be applied only until the due date of the premium for the calendar month for which the premium is payable.

(3) If a premium discount was deducted from the amount of the premium in excess of the amount that could be deducted, the amount by which the premium was so reduced would be considered as a premium debt. If a discount on premiums was deducted from the amount of premiums in a lower amount than could be deducted, there is no underpayment on premiums.

Discount on an insured employee who is an old-age pensioner

§ 7d

(1) An employee who is an old-age pensioner is entitled to a reduction in the pension insurance premium for a calendar month if he has reached retirement age and is entitled to a full retirement pension under the Pension Insurance Act; These conditions must be fulfilled throughout the calendar month for which the staff member applies a premium. The condition for receiving an old-age pension for a full calendar month shall be deemed to have been fulfilled if the staff member has received a full retirement pension from the beginning of the calendar month in which he died until the date of his death.

(2) The premium rebate is also due to revenue charged for the calendar months following the calendar month in which the employment ended, provided that such revenue is included in the staff member's assessment base and that the conditions laid down in paragraph 1 are fulfilled in the calendar month in which the employment ended.

§ 7e

(1) The amount of the discount on an insurance employee who is an old-age pension per calendar month is 6,5% of the employee's assessment base. The premium discount is rounded up to the whole crown.

(2) The employee applies the premium to the employer at the earliest for the calendar month in which he applied for the premium and for the following calendar months; The employee may not claim a discount retroactively from the employer.

(3) The discount on the insurance premiums is payable to the employee only if the employer has demonstrated that the conditions for entitlement to the insurance premium are met,

(a) proof of the decision to grant an old-age pension and a declaration of honour of entitlement to the old-age pension in full; or

(b) a confirmation by the pension holder of the full retirement pension, indicating the date on which the full retirement pension is due.

Discount on insurance staff in fruit and vegetable production

§ 7f

(1) A staff member who has an agreed agreement to carry out a work satisfying the conditions laid down in Article 6 of the Agriculture Act (hereinafter referred to as an employee in the fruit and vegetable sector) shall be entitled to a reduction in the premium per calendar month; the conditions for granting this discount on insurance premiums must be fulfilled as long as the premium is applied.

(2) The rebate on the insurance staff in the fruit and vegetable sector shall also be due to revenue charged for the calendar months following the calendar month in which the employment ended, provided that such revenue is included in the staff member's assessment base and that the conditions laid down in paragraph 1 are fulfilled in the calendar month in which the employment ended.

§ 7g

(1) The amount of the discount on the insurance staff in the fruit and vegetable sector per calendar month is 7,1% of the staff member's assessment base. The discount on the insurance employee in the fruit industry and when growing vegetables shall be rounded up to the whole crown.

(2) The employer shall apply the discount on the insured worker in the fruit and vegetable sector for the calendar month by means of a single monthly report.

(3) The discount on the insured worker in the fruit and vegetable sector for the calendar month does not apply if the employee in the fruit and vegetable sector has been accounted for in aggregate by all the labour agreements referred to in Article 7f (1) above the average wage fixed in accordance with Article 23b (4), rounded down to the nearest five hundred koruna.

Employer's insurance contributions

§ 8

(1) The employer is also obliged to pay the premiums which the employee is obliged to pay. The insurance premiums paid for the employees shall be deducted by the employer from the income he has settled for him.

(2) For the calendar month in which the employee has a deductible income but cannot be deducted from it because it is not in monetary form, the employer shall also be obliged to pay the premiums which the employee is obliged to pay; This shall also apply mutatis mutandis where part of the income is in cash but is less than the amount of the premiums payable by the staff member. Non-monetary benefits shall also be considered as non-monetary benefits for the purposes of insurance contributions by the employer to another entity for the benefit of the employee. The employee shall be obliged to pay the employer the premiums paid by the employer in accordance with the first sentence.

(3) The deductible income settled within the calendar month in which the employment of a small range of 58b has ended or the employment carried out under the contract of employment and the income cleared in the next calendar month or, where applicable, calendar months at an amount not established in that month or in the months of participation in sickness insurance, shall be considered as income cleared in the calendar month in which the sum of the deductible income included in the last calendar month in which the employment of a small scale or employment carried out under the contract of employment has been completed, has reached the amount giving rise to participation in insurance in that month.

(4) The employer is obliged to calculate the premiums which he is obliged to pay.

§ 9

(1) The employer pays the premium for each calendar month. The premium for the calendar month shall be payable from the first to the 20th day of the following calendar month. The insurance shall be paid to the account of the relevant local social security administration.

(2) The employer is obliged to communicate to the Czech Social Security Administration, by means of a single monthly report, the amount of the assessment basis determined in accordance with § 5a (1) (a), § 5a (1) (b) or § 5a (1) (c) and the amount of the premiums payable, indicating the number of the account from which the payment of the insurance was made; where premiums are determined on a multiple basis of the employer's assessment, the amount of premiums determined on the individual basis of the employer's assessment shall be indicated.

(3) If the employer applies a discount on an insurance fee for at least one employee, he is obliged to communicate to the Czech Social Security Administration by means of a single monthly report also the number of employees for which the premium is payable, the total of the assessment bases of these employees, the amount of the premium and the sum of the premiums after the reduction of the discount applied and the details of the individual employees for which the discount is applied; the following information means the name and surname, birth and date of birth, the basis of assessment of the employee from the employment on which he applies the insurance premium for that employee, the scope of the shorter working or service hours in that employment and the reason referred to in Section 7a (1) for which the employer applies the premium.

(4) If the employer has been entitled to a pension benefit reduction under Section 7e (2) with an employer of at least 1 employee, the employer is obliged to communicate to the Czech Social Security Administration, by means of a single monthly report, the number of employees who are entitled to a premium in a calendar month, the sum of the assessment bases of these employees, the sum of the discounts on those employees' premiums and the sum of the premiums after a reduction of the premiums on those employees' premiums.

§ 10

If the employer has more than one wage account registered under the special legislation (17), the employer's obligations in respect of contributions under Section 9 shall be met by each wage accounting office separately for the group of employees for which he keeps records of wages or salaries. For the purposes of this Act, the wage accounting office shall be the employer's department in which the wage or salary records are kept; where the employer is a State, the wage accounting department shall be the competent organisational body of the State where the salary records are kept.

§ 11

The employer in respect of whom the sentenced or the person in charge of the security detention is assigned to perform the work shall be obliged, for each calendar month, to pay the relevant prison or detention centre, together with the salary for the work of the sentenced or the remuneration for the work of the person in charge of the security detention and the insurance premiums which he is obliged to pay [§ 7 (1) (a) to (c)]. Prisons and institutions for the performance of security detention shall deduct the sum of sickness insurance benefits paid to the sentenced or persons in the exercise of security detention from the insurance premiums which are required to pay for the sentenced or persons in the exercise of security detention (§ 8 (1)) and, within the period referred to in § 9 (1), shall pay the amount of the insurance premiums to the competent service of the Czech Prison Service. Paragraph 9 (2) applies to the prison and the institution for the performance of security detention in relation to the competent service body of the Czech Prison Service. The provisions of the first to third sentences shall apply mutatis mutandis in the case of the employment of persons in custody who establish participation in sickness insurance.

§ 12

(1) The employer's legal successor shall be obliged to pay the premium for a maximum period of 10 years from the date on which he became the legal successor. The relevant territorial management of social security (18) shall, at the request of such a successor in law, declare the registered amount of premiums due.

(2) The premiums payable by a company or cooperative may also be paid by a member of a company or a member of the statutory body or supervisory board of that company or of the board of directors of the cooperative. This also applies to the person who was the partner or member.

Self-employed contributions

§ 13

(1) A self-employed person is required to pay pension insurance premiums and a contribution to the state employment policy and sickness insurance premiums for the account of the relevant local social security administration (19), with the exception of pension insurance premiums and a contribution to the state employment policy administered by the income tax administrator as a flat-rate public insurance policy.

(2) The self-employed person shall be required to pay, under the conditions laid down below, either pension insurance premiums and the contribution to the state employment policy or the advance payment to the pension insurance and the contribution to the state employment policy (hereinafter referred to as "the insurance advances') and the supplementary payment to the pension insurance and the contribution to the State employment policy (hereinafter referred to as" the insurance premium ').

§ 13a

(1) Self-employed persons are required to pay advances on insurance premiums

(a) for the calendar month in which she applied to participate in the pension scheme in the calendar year referred to in Article 10 (4) of the Pension Insurance Act and for the calendar months following that month, if she carries out a secondary self-employment activity; the obligation to pay advances on premiums under this application shall last for the December calendar year in which the self-employed person applied to participate in pension insurance;

(b) for the calendar month following the calendar month in which the revenue and expenditure referred to in Article 15 (1) was or should have been presented for the calendar year in which it reached the tax base (Article 5b (1)), at the rate of the pension participation referred to in Article 10 (2) and (3) of the Pension Insurance Act, and for the calendar months following that month, if it carries on an ancillary self-employed activity; the obligation to pay advances on premiums on the basis of the income obtained after deduction of expenditure shall last apply for the calendar month in which the statement of revenue and expenditure referred to in Article 15 (1) has been made in respect of the calendar year following the calendar year in which the self-employed person reaches income after deduction of expenditure equal to the amount of the pension participation provided for in Article 10 (2) and (3) of the Pension Insurance Act; or

(c) for the calendar month in which he carries on his principal self-employment.

(2) Where a self-employed person has applied to participate in pension insurance under Article 10 (4) of the Pension Insurance Act at the time when he is still required to pay the advance on the premiums referred to in paragraph 1, the advance on the premiums shall be paid on the basis of the application to participate in the pension insurance referred to in paragraph 1 (a) only after the end of the period for which he is required to pay the advance on the premiums referred to in paragraph 1 (b).

(3) The self-employed person shall pay the advances on insurance under the previous paragraphs for the last time in the calendar month in which the facts referred to in the second sentence of Paragraph 10 (6) of the Pension Insurance Act occurred and for the calendar month preceding the calendar month in which he presented an overview of the income and expenditure referred to in Article 15 (1) for the calendar year in which he did not have a participation in the Pension Insurance Act pursuant to Article 10 (2) and (3).

(4) If, in a calendar year, a self-employed person who has been obliged to pay the advance on the insurance referred to in paragraph 1 (b) has ceased to have that obligation because the facts referred to in the second sentence of Paragraph 10 (6) of the Pension Insurance Act have occurred and the self-employed person has subsequently started self-employment, he shall be obliged to pay the advance on the premium as if the termination of that obligation had not occurred; there is an obligation to pay advances on premiums for the calendar month in which the self-employed person began his self-employed activity.

(5) A self-employed person who has applied under Paragraph 10 (4) of the Pension Insurance Act to participate in pension insurance for a calendar year only after its expiry and has not been required to pay the advance on the insurance premiums for that year under paragraph 1 (b) may pay one-off advance on the insurance premiums for that year, pending the submission of an overview of the income and expenditure referred to in Article 15 (1) for that year.

(6) Advances on premiums paid without being due shall be deemed to be premiums for the purposes of determining the excess premium on pensions and the contribution to the state employment policy (hereinafter referred to as "the excess premium on pensions") or the premium on premiums (Sections 14 (11) and 14 (12)), unless the self-employed person has requested to be refunded before the summary referred to in Section 15 (1); if they are refunded, they are considered to be overpayments on pensions. The provisions of the preceding sentence shall not apply to advances on premiums referred to in paragraph 5.

(7) For the purposes of paying advances on insurance, the self-employed person shall be regarded as self-employed persons engaged in a secondary self-employed activity in a calendar month, in which at least for the part of the month in which the self-employed activity was carried out, the facts referred to in Section 9 (6) of the Pension Insurance Act were maintained.

(8) The facts referred to in paragraph 7 shall be taken into account on the basis of the notification of the self-employed person. The notification of a self-employed person to pursue the secondary self-employment activity referred to in paragraph 7 shall be taken into account for the purposes of paying the advances on insurance, provided that it has been made not later than in the inventory referred to in Article 15 (1) for the relevant calendar year and supported not later than the end of the calendar month following the calendar month in which the summary was submitted. The proof shall not be required in cases where the necessary information is provided by the local social security administration or the Czech Social Security Administration in its register or is able to obtain it electronically in a way that allows remote access; If personal care for a child is up to 4 years of age, the birth certificate of the child shall not be provided if it is possible to ascertain the relationship with the child from the public administration information system. The Czech Social Security Administration is obliged to publish which reasons for which the self-employed activity is secondary are not required to provide proof.

(9) Payment of advances on self-employed insured persons who are a taxpayer in a flat-rate scheme shall be subject to the Income Tax Act.

(10) The amounts which are not advances on insurance premiums or premiums transferred by the financial authorities of the Czech Republic for the relevant period from the common personal tax account of a self-employed person whose income tax was not equal to a flat-rate tax and which have the obligation or the possibility to provide an overview of income and expenses shall be regarded as advances on premiums paid for the relevant period for the purposes of determining the excess payment or premium on pension insurance.

§ 14

(1) Advances shall be paid for each calendar month. The amount of the premium advance shall be determined by the percentage referred to in Section 7 (1) (e) (1) of the monthly assessment basis. A self-employed person who has reached retirement age and is entitled to the full payment of an old-age pension may set the amount of the advance on the premium per calendar month at a percentage of 22,7%; These conditions must be fulfilled throughout the calendar month at which this percentage is applied. The condition for receiving an old-age pension for a full calendar month shall be deemed to have been fulfilled if the self-employed person received a full retirement pension from the beginning of the calendar month in which he died until the date of death. The amount of the advance on insurance premiums under the third sentence may be determined at the earliest from the calendar month in which the self-employed person received the decision to grant an old-age pension. The notification by the self-employed of the application of the premium rebate for the purpose of paying the premium advances shall be taken into account if it has been made not later than in the inventory referred to in Article 15 (1) for the calendar year concerned; This notification shall also apply for other calendar years, provided that the conditions for entitlement to the pension benefit and the contribution to the state employment policy are met without interruption.

(2) For a self-employed person who has been self-employed in the preceding calendar year, the monthly assessment base is 55% of the amount equal to the average of the tax base referred to in Article 5b (1) for that year for one calendar month in which the self-employed activity has been carried out for at least part of that month.

(3) The amount of the monthly assessment base of a self-employed person who is a taxpayer in a flat-rate scheme for:

(a) the first band of the flat-rate scheme, the amount of the lowest monthly assessment basis referred to in the first sentence of paragraph 5, increased by 15%;

b) second band of flat-rate scheme CZK 28 050; and

c) third band of flat-rate mode 42 900 CZK.

(4) On the basis of the notification of a self-employed person, the relevant local social security administration shall reduce proportionally for a period of no more than the end of the calendar month in which the summary referred to in Article 15 (1) has been made, if its income from self-employment after deduction of the expenditure incurred in achieving, securing and maintaining it on average for one calendar month in the last 3 calendar months in which the self-employed activity has been carried out for at least part of the calendar month preceding the calendar month in which the reduction notification was made, at least one third of the income corresponding to the previous calendar year in the average for one calendar month in which the self-employed activity was carried out in at least part of the calendar month. The monthly assessment basis so reduced shall not be lower than that established in accordance with paragraph 5. If there has not been a decline in income, the relevant local social security administration shall immediately, upon receipt of the notification, send a message to the self-employed person that its notification cannot be taken into account for this reason.

(5) The monthly basis of assessment of the self-employed person engaged in the main self-employed activity shall be at least 30% of the average wage in 2024, 35% of the average wage in 2025 and 40% of the average wage since 2026. In the calendar year in which the self-employed person engaged in the main self-employed activity began the self-employed activity and in the immediate 2 calendar years, the monthly assessment basis of that self-employed person shall be at least 25% of the average wage; However, this shall not apply where the self-employed person has already been self-employed during the 20 calendar years preceding the calendar year in which he began his self-employed activity. The monthly basis of assessment of a self-employed person who is considered to be a secondary self-employed person for the purposes of payment of advances (Sections 13a (7) and (8)) shall be at least 11% of the average wage.

(6) For the calendar month following the month in which the summary referred to in Article 15 (1) has been or should have been submitted, the advance payment on premiums corresponding to the monthly assessment basis established in accordance with paragraphs 2 and 4 shall be valid until the calendar month in which the summary was or should have been submitted in the following calendar year.

Citation	Act of the Czech National Council No. 589 / 1992 Coll., on Social Insurance and Contribution to State Employment Policy
Regulation Type	-
Author	-
Collection	Code of Laws

Date of Promulgation	17.12.1992
Effective from	01.01.1993
Effective until	-
Status	Valid

Act of the Czech National Council No. 589 / 1992 Coll.

Act of the Czech National Council on Social Security and Contribution to State Employment Policy

Contents

§ 1

§ 2

§ 3

§ 4

§ 5