The Minister of Labour, Marian Jurečka (KDU-ČSL), has proposed to postpone the newly imposed obligation to pay insurance contributions from work agreements from the original mid-this year to January 2025. The date employers must register these agreements is being left to July this year.
This new development was brought about by last year’s approved government consolidation package. Along with the delay in the effectiveness of contributions, the Minister wants to simplify the insurance selection system and the way to register for the contribution, making it safer for the employees themselves who work on the agreement. “There is consensus on this at the coalition level, the ministers agreed on this,” Jakub Augusta, the spokesman for the Ministry of Labor, told Novinky and Právo.
On the other hand, the Czech Social Security Administration will lead the record of people working on an agreement. “From January 1, 2025, there would be an obligation to pay contributions if the limit of 25 percent of the average monthly wage on that agreement is exceeded,” Minister Jurečka described the change.
He has already submitted one amendment to the Chamber of Deputies in this direction. It counted on a delay to this October or January of next year. However, Jurečka said that introducing contributions for the last quarter of this year would be an unnecessary complication for entrepreneurs, for example, from an accounting point of view. Therefore, he will withdraw this proposal and submit a definitive proposal with the introduction of contributions from next year.
According to the consolidation package, work on the agreement will be newly exempt from contributions only if the earnings from one employer do not exceed 25 percent of the average wage and earnings from all employers together do not exceed 40 percent of the average wage.