In July, a new employer registry was introduced to monitor employees working under dohody o provedení práce (DPP) - agreements for work performed, akin to short-term contracts. Companies are now required to submit a monthly report to the Czech Social Security Administration (ČSSZ) detailing the employee's information, work scope, and earnings.
Last year, the government also implemented further changes to DPP agreements, but in November 2024, they reversed these changes. Thus, even before they were scheduled to take effect (from January 1, 2025), these additional legal amendments are being revoked, and DPP agreements are largely reverting to their state before the consolidation package.
Here's what's changing (and what's not):
Higher Earning Limit: After many years, the upper limit for paying health and social insurance contributions will rise by a few hundred crowns.
Mandatory Reporting Remains: The previously mentioned mandatory reporting to the ČSSZ will continue.
New Limit for Earnings Without Contributions: The limit for earnings without needing to pay contributions is set at 25% of the average wage for DPP agreements. For 2025, this will be 11,500 CZK, and it will automatically adjust in future years based on the average wage. Previously, this limit was 10,000 CZK.
Essentially, the government had intended more substantial changes to DPP agreements as part of their consolidation package, but they ultimately chose to reverse most of them. The primary changes that remain are the mandatory reporting and a slight increase in the threshold for paying social and health insurance contributions.
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