After several changes over a relatively short period of time in the system of taxation and payment of insurance premiums for income from agreements to complete a job, yet another change is being prepared.  With the amendment in Parliamentary Print no. 743, the legislators aim for an effective date of 1 January 2025.

According to the data obtained from the compulsory registration of agreements to complete a job with the Czech Social Security Administration (hereinafter the “CSSA”), the notified agreement regime (the original legislation, which is now abolished by the draft amendment) would not significantly identify the new volume of wage transactions from agreements to complete a job that would be subject to insurance premiums. The notified agreement regime would have created a significant additional administrative burden for both employers and the CSSA, which is why this concept has been abandoned.

Changes to work performance agreements from 1 January 2025

• cancellation of the notified agreement regime,
• the compulsory registration of agreements with the CSSA (effective from 1 July 2024) continues to apply,
• income earned by an employee on the basis of an agreement to complete a job will not be subject to social security and health insurance contributions if, in aggregate for one employer, it does not reach the decisive amount of 25% of the average wage in a calendar month (CZK 11,500 for 2025),
• in the case of income from an agreement to complete a job subject to withholding tax, the same limit applies, i.e. income below 25% of the average wage.

We will continue to monitor further developments in this area for you.