Czech Republic to suspend minimum social and health payments for self-employed persons

For the next six months, holders of a Czech trade license will not have to pay minimum social and health taxes due to the economic impacts of cononavirus

As part of ongoing efforts to curb the economic impacts of the restrictions over the coronavirus epidemic, Czech MPs have approved a bill suspending minimum health and social tax payments for self-employed persons over the next six months.

Previously, the government had announced measures to aid employees and businesses affected by the coronavirus measures, including guaranteeing 80% of wages for all employees of businesses forced into closures by the regulations.

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For self-employed workers in the Czech Republic, the Czech government will essentially grant a 30,000 crown reprieve by suspending minimum health and social tax payments over the next six months. Those minimum payments amount to 2,352 crowns for health and 2,544 crowns for social taxes monthly.

Anyone who pays more than those numbers will still need to pay monthly health and social taxes, but they can subtract the minimum from their usual monthly payment for the next six months.

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The new regulation takes effect from March, and ends from September; if you’ve already paid your March taxes, however, you may postpone the September payments accordingly.

“Small entrepreneurs will not have to pay premiums at all for six months from March to August 2020, there is no need to apply for anything individually,” said Czech Chamber of Commerce spokesperson Miroslav Diro.

“But it will not be just a postponement of payments. Next year, when they calculate the base of assessment and premiums for the whole of 2020, they will be able to settle not only the advances actually paid, but also the amount of the six minimum payments corresponding to March to August. This will mean half of the annual duty for many self-employed people who pay only the minimum premiums.”

In addition to the suspension of social and health payments, MPs approved nursing aid for self-employed persons with children similar to what employees are currently entitled due to the school closures and other measures. This will be paid by their relevant trade office, who holders of trade licenses should contact for full details.

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“For the time being, self-employed have been dealt with quite satisfactorily,” Pavla Břečková, Vice-Chairman of the Board of the Association of Small and Medium-Sized Enterprises and Tradesmen, told

“We greatly welcome relief in [social and health] payments, and the nursing benefit is of great importance to parents.”

Due to the impact of these and other measures on the state budget, MPs have also approved an increase in the Czech Republic’s deficit from 40 to 200 billion crowns.

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