cz-social-health

Czech Social + Health Insurance -- Self-Employed (OSVČ) Skill v2.0

Section 1 -- Quick reference

Quick reference

Field	Value
Country	Czech Republic
Authority	ČSSZ (social); health insurance companies (health)
Primary legislation	Zákon č. 589/1992 Sb. (Social); Zákon č. 592/1992 Sb. (Health)
Supporting legislation	Zákon č. 155/1995 Sb. (Pension); Zákon č. 187/2006 Sb. (Sickness)
Assessment base	50% of profit (income minus expenses)
Social insurance rate	29.20% of assessment base
Health insurance rate	13.50% of assessment base
Combined effective rate	~21.35% of total profit
Social max base (2025)	CZK 2,234,736/year
Health max base	None (no cap)
Min social advance (hlavní)	CZK 3,852/month
Min health advance (hlavní)	CZK 2,968/month
Vedlejší social threshold	CZK 105,520/year profit
Paušální daň Band 1	CZK 7,498/month (turnover <= CZK 1M)
Currency	CZK only
Contributor	Open Accountants
Validated by	Pending -- requires validation by Czech daňový poradce
Validation date	Pending

Section 2 -- Required inputs and refusal catalogue

Required inputs

• Required inputs before computing — Before computing, you MUST obtain: 1. Is self-employment hlavní (main) or vedlejší (secondary)? -- thresholds differ significantly 2. Gross income (příjmy) from self-employment 3. Deductible expenses -- actual (skutečné) or flat-rate (paušální)? 4. Which flat-rate percentage? -- 40%, 60%, or 80% depending on activity 5. Voluntary sickness insurance? -- optional for OSVČ 6. Considering paušální daň? -- available if turnover < CZK 2,000,000. If hlavní vs vedlejší is unknown, STOP.

Refusal catalogue

• R-CZ-SOC-1 -- Non-resident OSVČ — Trigger: EU citizen working as self-employed in Czech Republic but resident elsewhere. Message: "Social/health obligations depend on EU Regulation 883/2004. A1 certificate required. Escalate."

Prohibitions

• Prohibitions list — NEVER compute without knowing hlavní vs vedlejší -- minimums differ dramatically; NEVER forget that the assessment base is 50% of profit, not 50% of gross income; NEVER state that Czech social/health contributions are tax-deductible -- they are NOT; NEVER ignore the social insurance maximum cap at CZK 2,234,736; NEVER forget that health insurance has NO maximum cap; NEVER apply vedlejší minimums to a hlavní OSVČ; NEVER advise on paušální daň without verifying all eligibility conditions; NEVER present advance payments as final -- annual reconciliation via Přehled determines actual liability; NEVER confuse flat-rate expense percentages -- 80%/60%/40%/30% depend on activity type

Section 3 -- Assessment base

• Assessment base formula — profit = gross_income - expenses (actual or flat-rate) assessment_base = profit x 50% (Section 5b Zákona č. 589/1992 Sb.; Section 3a Zákona č. 592/1992 Sb.)

Flat-rate expense percentages

Flat-rate expense percentages

Activity	Flat-rate %	Cap
Agriculture, crafts	80%	CZK 1,600,000
Trade/business	60%	CZK 1,200,000
Other business	40%	CZK 800,000
Rental	30%	CZK 600,000

Section 4 -- Rates and thresholds (2025)

Social insurance (ČSSZ)

Social insurance (ČSSZ)

Component	Rate
Pension (důchodové pojištění)	28.00%
State employment policy (příspěvek na SPZ)	1.20%
Total social	29.20%
Sickness (voluntary)	2.10%

Health insurance

Health insurance

Component	Rate
Health (zdravotní pojištění)	13.50%

Minimum monthly advances (2025)

Minimum monthly advances (2025)

Category	Social	Health
Hlavní OSVČ	CZK 3,852	CZK 2,968
Vedlejší OSVČ	CZK 1,413	Actual (no minimum)

Vedlejší threshold

• Vedlejší threshold rule — Vedlejší OSVČ pay no social insurance if annual profit < CZK 105,520. Health is still due on actual income.

Paušální daň (lump-sum tax)

Paušální daň (lump-sum tax)

Band	Turnover limit	Monthly payment
Band 1	Up to CZK 1,000,000	CZK 7,498
Band 2	CZK 1,000,001 -- 1,500,000	CZK 16,745
Band 3	CZK 1,500,001 -- 2,000,000	CZK 27,139

Paušální daň (lump-sum tax)

• Paušální daň eligibility — Eligibility: turnover up to CZK 2,000,000, not VAT payer, hlavní OSVČ only. No annual tax return required.

Section 5 -- Computation steps

Step 5.1 -- Calculate profit and assessment base

• Profit and assessment base calculation — profit = gross_income - expenses assessment_base = profit x 50% assessment_base = max(assessment_base, minimum_assessment_base)

Step 5.2 -- Annual social insurance

• Annual social insurance calculation — social_annual = assessment_base x 29.20% social_annual = max(social_annual, minimum_monthly_social x 12)
• Maximum assessment base for social — CZK 2,234,736/year

Step 5.3 -- Annual health insurance

• Annual health insurance calculation — health_annual = assessment_base x 13.50% health_annual = max(health_annual, minimum_monthly_health x 12)
• No maximum for health — No maximum for health.

Step 5.4 -- Monthly advance payments

• Monthly advance payments calculation — monthly_social_advance = max(social_annual / 12, minimum_social_advance) monthly_health_advance = max(health_annual / 12, minimum_health_advance)

Section 6 -- Payment schedule and tax deductibility

Payment schedule

• Payment schedule rules — Social advances due by the 20th of the following month; Health advances due by the 8th of the following month; Annual reconciliation via Přehled filed with ČSSZ and health insurance company; Přehled deadline: within 1 month of income tax filing deadline (typically by 1 May or 1 July if filed by advisor)

Tax deductibility

Tax deductibility

Question	Answer
Are social contributions deductible?	NO
Is health insurance deductible?	NO
Are sickness contributions deductible?	NO

• Non-deductibility rule — Czech contributions are NOT deductible from the income tax base. They are a separate obligation.

Section 7 -- Voluntary sickness and special situations

Voluntary sickness insurance

• Voluntary sickness insurance rule — Self-employed can opt in at 2.10% of assessment base (minimum CZK 216/month). Provides sick pay from day 15 of illness.

Switching from vedlejší to hlavní mid-year

• Mid-year switch rule — From the month classification changes, minimum advances increase to hlavní level. Annual reconciliation applies hlavní minimums pro-rata. Flag for reviewer to confirm exact calculation with ČSSZ.

Paušální daň eligibility lost mid-year

• Eligibility lost mid-year rule — Client exits paušální daň regime for the entire year. Must file regular income tax return and pay social/health on standard basis. All paušální payments credited.

Section 8 -- Edge case registry

EC1 -- First year of activity (hlavní)

• EC1 — Situation: Started self-employment in September 2025. Resolution: Minimum advances from registration month. No prior-year base available.

EC2 -- Concurrent employment (vedlejší)

• EC2 — Situation: Employed full-time, side self-employment. Resolution: Vedlejší. If profit < CZK 105,520, no social insurance (voluntary). Health on actual income.

EC3 -- High income, social cap applies

• EC3 — Situation: Assessment base exceeds CZK 2,234,736. Resolution: Social capped. Health continues at 13.5% without limit.

EC4 -- Voluntary sickness insurance

• EC4 — Situation: Client wants sickness benefit coverage. Resolution: Opt in at 2.10%, minimum CZK 216/month. Must opt in actively.

Section 9 -- Reviewer escalation protocol

When a situation requires reviewer judgement:

REVIEWER FLAG
Tier: T2
Client: [name]
Situation: [description]
Issue: [what is ambiguous]
Options: [possible treatments]
Recommended: [most likely correct treatment and why]
Action Required: Qualified daňový poradce must confirm before advising client.

When a situation is outside skill scope:

ESCALATION REQUIRED
Tier: T3
Client: [name]
Situation: [description]
Issue: [outside skill scope]
Action Required: Do not advise. Refer to qualified daňový poradce. Document gap.

Section 10 -- Test suite

Test 1 -- Standard hlavní, mid-range

Input: Gross CZK 1,200,000, flat-rate 60%, hlavní, age 35. Expected output: Expenses CZK 720,000. Profit CZK 480,000. Base CZK 240,000. Social CZK 70,080. Health CZK 32,400. Total CZK 102,480. Monthly: social CZK 5,840, health CZK 2,700.

Test 2 -- Minimum advances (hlavní, low income)

Input: Gross CZK 300,000, flat-rate 60%, hlavní. Expected output: Profit CZK 120,000. Base CZK 60,000 (below annual minimum). Social CZK 46,224. Health CZK 35,616. Total CZK 81,840.

Test 3 -- Vedlejší below threshold

Input: Gross CZK 200,000, flat-rate 60%, vedlejší. Expected output: Profit CZK 80,000. Below CZK 105,520. Social CZK 0. Health CZK 5,400.

Test 4 -- High income, social cap

Input: Gross CZK 8,000,000, actual expenses CZK 2,000,000, hlavní. Expected output: Profit CZK 6,000,000. Base CZK 3,000,000. Social capped at CZK 652,543. Health CZK 405,000. Total CZK 1,057,543.

Test 5 -- Paušální daň Band 1

Input: Turnover CZK 800,000, hlavní, not VAT registered. Expected output: Band 1. Monthly CZK 7,498. Annual CZK 89,976.

Test 6 -- First year with minimum advances

Input: Started October 2025, hlavní. Expected output: Social CZK 11,556 (3 months). Health CZK 8,904. Total CZK 20,460.

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

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