As part of the so-called consolidation package presented by the government, which has passed its first reading in the Chamber of Deputies of the Parliament of the Czech Republic and its second reading is scheduled for the first half of September, there should be changes in insurance premiums for persons who perform their activities under an agreement to complete a job.
The main change in the insurance premiums for agreements to complete a job will be the abolition of the fixed amount of CZK 10,000. The new amount should be based on the average wage.
In addition, the threshold for contributions for all jobs with the same employer will be changed to 25% of the average wage. Where an employee has multiple agreements to complete a job with multiple employers, a higher threshold of 40% of the average wage will apply. The consolidation package also includes the aggregation of all earnings arising from agreements to complete a job from all employers.
Employers who will employ employees on the basis of an agreement to complete a job in the relevant month will have to inform the Social Security Administration by the 20th day of the following month using the prescribed form. Another obligation of the employer will be to report employees working under an agreement to complete a job to the register of employees of the of Czech Social Security Administration (ČSSZ) and to keep records of these employees.
The above-mentioned consolidation package also imposes new obligations on employees. In the event of multiple agreements to complete a job with different employers, the employee will be obliged to properly notify all of them. If the employee fails to comply with this notification obligation, the employee may become payer of insurance premiums on the basis of a decision of the Social Security Administration.
After the modification of the consolidation package, we can expect a change in the simplification of registration, which is currently being prepared by the Ministry of Labor and Social Affairs of the Czech Republic.
