Effective from 1 July 2024, Act No. 187/2006 Coll., on sickness insurance, Act No. 589/1992 Coll., on social security premiums and contributions to state employment policy, and Act No. 48/1997 Coll., on public health insurance, will be amended in the area of ​​work performance agreements.

What will these changes bring to employers who employ, or intend to employ, employees on a work performance agreement in view of the approaching holidays?

• Obligation to register with the employer register by July 31, 2024 (applies to employers who only employ employees under a work contract and are not yet in the register).
• The obligation to notify the district social security administration of existing and newly concluded agreements on the performance of work (or the start of an employee).
• Send  information about the assessment base amount to the district social security administration by the 20th day of the following month  (even if the employee reaches “zero” income)
• Inform the district social security administration about the termination of the work performance agreement.

The notification of commencement and information on the assessment basis for the relevant month can be made using a single form. The first notification together with information on the assessment basis must be submitted by 20 August 2024 .

What doesn’t change:

The amount of income determining the occurrence of participation in health insurance (contributions) –  the limit of up to CZK 10,000 per month still applies . Income earned from activities based on an agreement to perform work for other employers is not added up.

Effective from 1 January 2025, the above system will be changed  and for an employee’s participation in sickness insurance (and contributions), it will be decisive whether their agreement to perform work is under the so-called notified or non-notified agreement regime. There will also be a change in the procedure for calculating the amount decisive for an employee’s participation in sickness insurance.

We will inform you in due course about the details regarding the changes from January 1, 2025 (“winter phase”).