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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case CZ-2020-10/300 – measures in Czechia

Waiver of advance payments for social and health insurance for self-employed

Odklad záloh sociálního a zdravotního pojištění pro OSVČ

Country Czechia , applies nationwide
Time period Temporary, 01 March 2020 – 31 August 2020
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial)
Author Soňa Veverková (Research Institute for Labour and Social Affairs) and Eurofound
Case created 06 April 2020 (updated 01 July 2020)

Background information

The Act 136/2020 Coll., selected modifications in the area of contributions to social security and contributions to the state employment policy and pension has been approved. This Act foregoes the obligation of self-employed persons to pay social and health insurance advance payments from March to August 2020. This measure should help self-employed to keep cash-flow when their business activities are limited by government measures against COVID-19.

There is no need to individually apply for the waiver of the obligation to pay advance premiums for March to August 2020, it is a legal regulation that will be applied to all self-employed persons by default.

Content of measure

Eligible are all self-employed persons performing major or subsidiary gainful activity. They are not obliged to pay advance health and social insurance premiums from March to August 2020. If the self-employed person pays or has already paid any of these advances, they will be used for any other already due liabilities and further as advance insurance premiums for September to December 2020.

Minimum monthly payment for self-employed persons performing major gainful activity is for health insurance is CZK 2,352 (€86 approx.), for social insurance CZK 2,544 (€93 approx.) which now self-employed can use for different reasons. However, she/he will have to pay the health and social insurance payments for March-August 2020 in 2021, when she/he submits income and expenses report for 2020.

In case the self-employed is obliged to pay advance health and social insurance payments of higher assessment than the minimum monthly amount (depends on the income in previous year, e. g. 2019), he/she pays the difference between the minimum and real advance payment assessment in the form of balance insurance premium for the year 2020 (therefore it will be used for health and social insurance payment in 2021).

Use of measure

Not available yet.

Target groups

Workers Businesses Citizens
Self-employed
Does not apply to businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Company / Companies
No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Informed Informed
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Peak or cross-sectoral level

Involvement

Social partners, who are members of the tripartite body (Council of economic and social agreement, Rada hospodářské a sociální dohody, RHSD) were informed and consulted in both formal (requested by institutional settings) and informal ways. They are not involved in the management of policy measures.

Views and reactions

Supportive.

Sources

  • 27 March 2020: VZP: Changes in payments on health insurance/VZP: Změny u plateb na zdravotní pojištění v souvislosti s epidemií COVID-19 (www.vzp.cz)
  • 27 March 2020: Act No. 136/2020 Coll., on selected modifications in the area of contributions to social security and contributions to the state employment policy and pension/Zákon č. 136/2020 Sb., o některých úpravách v oblasti pojistného na sociální zabezpečení a příspěvku na státní politiku zaměstnanosti a důchodového pojištění v souvislosti s mimořádnými opatřeními při epidemii v roce 2020 (www.zakonyprolidi.cz)
  • 09 April 2020: CSSZ: Self-employed persons - coronavirus/CSSZ: Sebezaměstnaní - koronavirus (www.cssz.cz)

Citation

Eurofound (2020), Waiver of advance payments for social and health insurance for self-employed, case CZ-2020-10/300 (measures in Czechia), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.