On 30 September 2024, a Government Regulation came into force which sets the general assessment base for the calculation of insurance premiums for 2025. So now we can determine the amount of minimum insurance premiums that self-employed persons will pay in 2025. The minimum assessment base for social and health insurance premiums is based on the average wage for 2025, which is recalculated by a coefficient set by the government from the average wage in 2023.
There is another factor in social security contributions that has caused the minimum advance payments to rise in recent years. Until 2023, the minimum monthly assessment base is calculated as 25% of the stated average wage. However, the consolidation package brought a change in the calculation and a gradual increase in this base. In 2024 it was increased to 30% of the average wage, for 2025 it will be 35% of the average wage and from 2026 the calculation will be stabilised at 40% of the average wage. The premium rate remains unchanged at 29.2%. The minimum monthly advance for self-employed persons for the main activity for 2025 is therefore CZK 4 759.
We have more than one scheme for social insurance premiums. For newly established self-employed persons, there is an exception in the change of the calculation of the minimum assessment base according to the consolidation package in the year of commencement of the main gainful activity and in the following two years. The minimum monthly advance payment for self-employed persons in this scheme will be CZK 3,399 in 2025.
Self-employed persons in the secondary activity regime have a minimum monthly advance payment of CZK 1,496. Let us recall that self-employed persons in the secondary activity regime also have a so-called decisive amount for participation in social insurance, i.e. a set limit of the assessment base up to which no insurance premiums are paid. This decisive amount for 2025 is CZK 111,736. For example, self-employed persons with a 60% flat-rate expenditure who will have income of up to CZK 279 thousand in 2025. CZK per year and are self-employed in a secondary activity, they will avoid paying social insurance premiums.
In the case of social insurance premiums, we should also mention the maximum annual assessment base, i.e. the limit above which no insurance premiums are payable. It is calculated as 48 times the average wage and for 2025 it amounts to CZK 2 234 736. This limit is also common for employees. If a self-employed person exceeds this maximum assessment base (an employee his/her annual gross income), he/she no longer pays insurance premiums above this limit. Again, for a sole trader with a 60% flat-rate expenditure, this limit corresponds to an annual income of approximately CZK 3 635 thousand. CZK.
The monthly health insurance payment for persons without taxable income is also being raised to CZK 2 808.
Finally, I would like to point out that all minimum advances are payable at the new rate from January 2025. I would also like to remind you that when compiling the 2024 accounts (usually in spring 2025), the amounts applicable for 2024 must be taken into account.
autor: Jakub Klíma
Social insurance premiums
There is another factor in social security contributions that has caused the minimum advance payments to rise in recent years. Until 2023, the minimum monthly assessment base is calculated as 25% of the stated average wage. However, the consolidation package brought a change in the calculation and a gradual increase in this base. In 2024 it was increased to 30% of the average wage, for 2025 it will be 35% of the average wage and from 2026 the calculation will be stabilised at 40% of the average wage. The premium rate remains unchanged at 29.2%. The minimum monthly advance for self-employed persons for the main activity for 2025 is therefore CZK 4 759.We have more than one scheme for social insurance premiums. For newly established self-employed persons, there is an exception in the change of the calculation of the minimum assessment base according to the consolidation package in the year of commencement of the main gainful activity and in the following two years. The minimum monthly advance payment for self-employed persons in this scheme will be CZK 3,399 in 2025.
Self-employed persons in the secondary activity regime have a minimum monthly advance payment of CZK 1,496. Let us recall that self-employed persons in the secondary activity regime also have a so-called decisive amount for participation in social insurance, i.e. a set limit of the assessment base up to which no insurance premiums are paid. This decisive amount for 2025 is CZK 111,736. For example, self-employed persons with a 60% flat-rate expenditure who will have income of up to CZK 279 thousand in 2025. CZK per year and are self-employed in a secondary activity, they will avoid paying social insurance premiums.
In the case of social insurance premiums, we should also mention the maximum annual assessment base, i.e. the limit above which no insurance premiums are payable. It is calculated as 48 times the average wage and for 2025 it amounts to CZK 2 234 736. This limit is also common for employees. If a self-employed person exceeds this maximum assessment base (an employee his/her annual gross income), he/she no longer pays insurance premiums above this limit. Again, for a sole trader with a 60% flat-rate expenditure, this limit corresponds to an annual income of approximately CZK 3 635 thousand. CZK.
Sickness insurance
For 2025, the minimum advance payment for sickness insurance will also increase to CZK 243. Sickness insurance is voluntary for self-employed persons, so they do not have to pay it. However, I would like to point out here that participation in sickness insurance is a necessary condition for receiving maternity benefits (for self-employed persons at least 180 days in the one year prior to the start of maternity leave and at least 270 days in the last two years).Health insurance
Calculating the minimum health insurance contributions is a little simpler. The minimum assessment base is set at 50% of the average wage; there is no change here. The premium rate has also not changed and is 13.5%. The minimum monthly contribution for self-employed persons for the main activity for 2025 is therefore CZK 3,143. There is no minimum advance payment for self-employed persons for secondary activities: either they do not pay it at all (in cases where they are also employed) or they pay it on the basis of the calculation of the last known contribution obligation (in other cases).The monthly health insurance payment for persons without taxable income is also being raised to CZK 2 808.
Flat tax
The minimum social and health insurance payments directly affect the amount of the flat-rate tax set for Band 1. This will be CZK 8,716 per month in 2025. The flat-rate tax for zones 2 and 3 will remain unchanged at CZK 16,745 and CZK 27,139 per month respectively.Finally, I would like to point out that all minimum advances are payable at the new rate from January 2025. I would also like to remind you that when compiling the 2024 accounts (usually in spring 2025), the amounts applicable for 2024 must be taken into account.
autor: Jakub Klíma