Social and health insurance payment changes for work agreements have not yet come into force, but their adjustment is already under consideration. Specifically, it may involve the income level from which companies and workers will pay it on a contract basis.
Suppose a person works on multiple contracts simultaneously, according to the legal amendment that will take effect in July. Insurance should be deducted from minimum income at forty percent of the average wage in that case. That is currently 17,500 crowns per month. Employers, therefore, wouldn’t know until the last moment whether and how much they will deduct, as they do not have an overview of earnings at other companies. A contractor’s income can change each month with multiple contracts.
However, this is likely to change soon. Employers will not have to wait for earnings from other companies. “There will no longer be a need to add anything and measure it afterward. Each contract will be looked at individually,” said the secretary of the Economic Chamber, Ladislav Minčič, to Hospodářské noviny.
A company that reports the contract with the contractor to the Czech Social Security Administration first will only pay insurance if the earnings exceed ten thousand crowns. All other contracts will have a significantly lower limit for non-payment of contributions, which can be units of thousands.
According to Hospodářské noviny, a new proposal is being created in a working group whose members are ministries, deputies, and business representatives, and it is not yet definitive.