According to the government regulation, a new conversion coefficient will be established as of 1 January 2025, which will result in significant changes in insurance contributions for self-employed persons. The changes in the levies will affect both the amount of monthly advances for sole traders who file annual reports on income and expenses of self-employed persons and entrepreneurs using the flat-rate regime.

Minimum monthly advance payments and other indicators

• Social insurance – the minimum deposit for social insurance will increase to CZK 4,759 for the main activity of self-employed persons (for 2024 it was CZK 3,852), for secondary activities it will increase to CZK 1,496 (for 2024 the minimum deposit was CZK 1,413).
• Health insurance – the minimum monthly deposit for self-employed persons for the main activities for 2025 is CZK 3,143 (for 2024 it was CZK 2,968). There is no minimum deposit for ancillary activities.
• Person without taxable income – the increase in advances also applies to persons without taxable income. From the new year, they will have to contribute CZK 2,808 in monthly health insurance payments compared to the previous CZK 2,552.
• Participation in social insurance – the set limit up to which the self-employed person is not obliged to participate in social insurance when performing secondary activities is CZK 111,736 for 2025.
• Sickness insurance – this insurance is voluntary for self-employed persons, however, it provides maternity benefits, long-term caregiver allowance, etc. The minimum premium deposit for 2025 is CZK 243.
• Maximum assessment base – there is also an increase in the limit of the maximum assessment base for social insurance, above which no contributions are paid. The limit is set at CZK 2,234,736 for 2025.

Please note that due to the consolidation package, beginning entrepreneurs will be relieved from paying the minimum social security contributions from 2025. They will be able to pay lower advance payments when carrying out their main gainful activity, specifically in the year of starting their activity and in the following two years. For 2025, the monthly advance payment is set at CZK 3,399.

Self-employed persons in the flat-rate scheme

The monthly advance payment will increase by CZK 1,218 in 2025 under the flat-rate scheme. Specifically, there is an increase in the amounts of social and health insurance in the 1st band, where the monthly payment will increase from the original CZK 7,498 to CZK 8,716. Monthly advances for zones 2 and 3 remain the same and amount to CZK 16,745 and CZK 27,139 respectively.

Businesses wishing to join the flat-rate scheme can do so until 10 January 2025. The advance payment is then due by the 20th day of the calendar month, to which it relates.