Pensions and Minimum Wage Increase: Entrepreneurs Pay More in Advance

Starting the new year, seniors and people working for minimum wage can expect higher incomes in the Czech Republic. Along with the increase in minimum wage, guaranteed wages for certain professions will also rise. However, due to this increase, people without taxable incomes, such as older full-time students or homemakers, may have to dig deeper into their pockets for health insurance.

In January, pensions will increase for the vast majority of pensioners, both old-age and invalid, widows or orphans by 360 crowns. The reason is that only the basic pension assessment will increase, thus reaching 4400 crowns. The merit percentage part will not increase due to the previous extraordinary valorization. The average old-age pension should, therefore, be 20,635 crowns.

“Only pensioners who reach the age of 85 in January will have their percentage assessment increased by a thousand crowns,” the Czech Social Security Administration pointed out. However, this also happens during the year for all pensioners who reach this age.

The minimum wage will also increase. From the New Year, it will rise from 17,300 to 18,900 gross crowns monthly. When converted to a net salary, it should be 16,442 CZK.

Increasing the minimum wage will make health insurance more expensive for people without taxable income. These are, for example, homemakers, some university students older than 26 years except doctoral students, or the unemployed who are not registered with the Labor Office. The condition is that neither the state nor the employer pays insurance for them. It will cost them from 2336 to 2552 crowns. Similarly, the minimum insurance of employees will increase.

Due to the increase in the average wage, the minimum advances of entrepreneurs and self-employed persons will increase. For social insurance, they will pay 3852 crowns for the main activity and 1413 crowns monthly for the side activity. For entrepreneurs starting a primary activity, the minimum advance is 3210 CZK. Health insurance will cost them from 2722 to 2968 crowns for the main activity. No advances are paid on the side. The minimum voluntary monthly sickness insurance for 2024 is 216 crowns.