Overview of legislative amendments in 2024

Several legislative amendments entered into force as of 1 January 2024 – certain under the Labour Code and certain in connection with the effect of the consolidation package. Below we provide a summary of the most important amendments.

Minimum salary

As of 1 January 2024, the basic rate of the minimum monthly salary increased by CZK 1,600 to CZK 18,900. Consequently, persons without taxable income (abbreviated as OBZP in Czech) will pay monthly health insurance contribution of CZK 2,552.

Increased insurance contributions for self-employed persons

Social insurance

Starting from 2024, the minimum assessment base for social insurance contributions for self-employed persons will gradually increase. Between 2024 and 2026, the assessment base will increase from 25% to 40% of the average salary.

For 2024, this corresponds to 30% of the average salary, which has increased to CZK 43,967. The minimum advance towards social insurance thus equals CZK 3,852.

For persons carrying out business as ancillary activity, the minimum advance equals CZK 1,413.

Furthermore, the tax base for the calculation of insurance contributions from the assessment base has changed from 50% to 55%.

Health insurance

The calculation of the minimum assessment base for health insurance remains unchanged and the 2023 rules continue to apply. Nonetheless, after the increase in the average salary, the minimum advance on health insurance contribution has increased to CZK 2,968.

Flat-rate income tax

Firstly, the manner of submitting a notification of entry into the flat-rate tax regime has changed. If you have a data box, you are obliged to submit the notification of entry exclusively by electronic means into the data box or, alternatively, through the interactive form on the MOJE daně portal.

The monthly advances in the individual bands have also increased.

Band	Flat-rate tax advances in 2024
Band I.	CZK 7,498
Band II.	CZK 16,745
Band III.	CZK 27,139

Illegal work

The amendment to the Employment Act changed the definition of “illegal work” to ensure its effective control.

The amendment will mostly affect people under false self-employment, i.e. employed persons disguising their employment relationship under a different contract.

Typical for false self-employment is that the self-employed person is closely linked with a specific customer, i.e. consistently bills his work only to one customer. Other characteristics may include the absence of own business means and equipment (office, employees, website) and inclusion in the organisational structure of the given customer.

In such a case, the situation may be assessed by the labour inspectorate as illegal work, for which sanctions may be imposed. Indeed, Section 140 (5) of the Act newly allows to impose not only a fine, but also a disqualification order for up to 2 years.

Agreements to complete a job and agreement to perform work

In our recent article on the amendment to the Labour Code which came into force on 1 January 2024, we discussed the entitlement to paid leave for people working on the basis of agreements outside an employment relationship.

As of 1 July 2024, the changes will further include participation in compulsory insurance subject to the following thresholds:

If you have an agreement with one employer, the threshold is set at 25% of the average salary;
If you have more agreements with multiple employers, the threshold is set at 40% of the average salary.

If either threshold is exceeded, the employee will automatically participate in the insurance, for which premiums are paid by both the employee and the employer.

Agreements to perform work are subject to the same rules as in 2023.