Tradelicense.cz

2025 Social Security contributions for a Czech Trade License

Monthy Social Security charges - for all nationalities

Everybody will start in the first year of his Trade License with the minium Social Charges, independent of the (expected) Revenue, but if that is not enough, you need to pay the difference once you file the Tax Return.

• The minimum Social Charges for 2025 are 4.759 CZK / month, for first registrations it is 3.399 CZK / month. Each year they go up by a few 100 CZK.
• The total sum of the Social Charges depends on your annual Revenue (it is about 6.4% of Revenue up to 2 M CZK, using the 60/40 rule, for 2025)

If you have a job as employee / receive salary as director of an sro and using the Trade License as secondary income, then the monthly social contribution is 0 CZK / month for the first year - of course, you need to pay up when your Tax Return and overview for the Social Security is ready . For the next year the social security contribution for secondary TL income is 1.496 CZK (unless the social security contributions through employment have been more than 54.379 CZK / month).

Premiums, Maternity Benefits

Additional, so-called Premiums are not included in the standard Social Charges. The Premiums pay out (a rather modest sum) in case of long-term illness / inability to work. Also they entitle you to state support in the first phase of maternity leave, although any payout during the first part of maternity leave will require to not invoice through the Trade License. Inform yourself whether it is beneficial to pay the Premiums at all. In most cases the state support is so small, that it makes more sense to keep your Trade License active, and send a few more invoices. When registering your Trade Licenses, we do not register you for the Premiums automatically - because it is not a requirement for the proper functioning of the Trade License.

Maternity and Parental benefits are indeed a very complex matter in Czech Republic. One needs to comply to a number of conditions (paying the Premiums well in advance (270 days) and the exact amount, for example) and file applications exactly in time at the Social Security and Unemployment Office. It is so complex that it is impossible to give any reasonable advice in a few words. Best is to find out your individual case directly at Social Security.

NOTE: In order to get benefits, Premiums must be paid on top of the Social Security contributions !!! Confusingly, this is called 'health insurance' - but it is paid to the Social Security. See Nemocenské pojištění OSVČ (external link). The minimum premium in 2025 is 243 CZK/month

The Paušální Daň (Flat Tax) system

A number of years ago, a new system for paying Income Tax, and Social Security / Public Health Care contributions was introduced: the paušální daň system. It consist of 1 monthly payment combining all 3 - contrary to popular belief it is not always beneficial and there are also restrictions / requirements that need to be considered.

See this article for details on all 3 accounting methods for trade licenses

Calculating annual Social Charges

When filing the Income Tax Return, we will calculate if those minimum Social Charges were enough to cover the revenue that you made in the previous year, or that you must pay extra (this can be 10.000s of CZK!). Also, based on the income of the previous year, we will calculate the new monthly Social Charges for the next year.