Changes to health and social insurance in 2025

Changes in the Health and Social Insurance System in the Czech Republic from 2025

Starting in 2025, significant changes will be introduced to the health and social insurance system in the Czech Republic. These changes will affect not only employees and self-employed individuals (OSVČ) but also students, seniors, and persons without taxable income (OBZP). Below, we provide an overview of the most important information you need to know.

Increase in the Minimum Wage and Its Impact on Insurance

From January 1, 2025, the minimum wage will increase to 20,800 CZK. This change will directly impact the calculation of health and social insurance contributions. Employers will continue to pay 25% for social insurance and 9% for health insurance based on the gross salary of employees. Employees themselves will contribute 6.5% to pension insurance and 0.6% to sickness insurance.

Changes for Self-Employed Individuals (OSVČ)

From 2025, the minimum contributions for self-employed individuals will change:

• Health Insurance: The minimum monthly contribution will be 3,143 CZK, an increase of 175 CZK compared to 2024. This amount is calculated as 13.5% of half the average wage, which will reach 46,557 CZK in 2025.
• Social Insurance: The minimum monthly contribution for primary activities will increase to 4,759 CZK (up from 3,852 CZK). For secondary activities, the new minimum contribution will be 1,496 CZK.

Self-employed individuals with secondary activities whose annual income does not exceed 111,736 CZK will not be required to pay social insurance contributions. Voluntary sickness insurance will remain available, with a minimum monthly contribution of 243 CZK.

New entrepreneurs can take advantage of reduced social insurance contributions, which will be 3,399 CZK per month during the first year of business and the following two years.

Persons Without Taxable Income (OBZP)

From 2025, persons without taxable income will pay a minimum monthly health insurance contribution of 2,808 CZK, up from the previous 2,552 CZK. This increase reflects the rise in the minimum wage.

Flat-Rate Regime for Self-Employed Individuals

Monthly contributions in the flat-rate regime will change as follows:

• 1st tier: Contribution will increase to 8,716 CZK (up by 1,218 CZK from 7,498 CZK in 2024).
• 2nd tier: No change, remaining at 16,745 CZK.
• 3rd tier: No change, remaining at 27,139 CZK.

Entrepreneurs who wish to enter the flat-rate regime must submit an application no later than January 10, 2025. Payments are due by the 20th day of the calendar month to which they apply.

Changes for Students

Students working under agreements on work performance (DPP) or work activity agreements (DPČ) will be required to pay insurance if their monthly income exceeds:

• 10,000 CZK for DPP,
• 4,000 CZK for DPČ.

Students studying full-time and earning below these limits will continue to have their health insurance covered by the state. Social insurance remains optional unless the student is employed or running a business.

Seniors and Their Insurance

Seniors receiving old-age pensions who are also employed will pay health and social insurance under the same conditions as other employees. If their income does not exceed certain limits, they will be exempt from minimum health insurance contributions. A discount of 6.5% on social insurance will remain in effect.

Administrative Changes

From 2025, the Czech Social Security Administration (ČSSZ) will introduce a unified electronic system, which will be mandatory for:

• Insurance registration,
• Submission of monthly reports,
• Insurance payments.

This system aims to simplify administration and improve communication between payers and institutions.

How to Prepare for the Changes

To ensure a smooth transition to the new system, we recommend:

• Keeping up to date with information on the official websites of ČSSZ and health insurance companies.
• Using electronic tools for managing contributions.
• Consulting your obligations with accountants or financial advisors.

Changes in the health and social insurance system will bring higher demands on payers but also improve the administration and transparency of payments. Be prepared for the new conditions and stay informed about your obligations.