New DPP contribution threshold
The new year will bring a new variable contribution threshold. The law now sets the DPP contribution threshold at 25% of the average wage, rounded down to the nearest CZK 500. The Ministry of Labour and Social Affairs will announce the threshold for each year.
For 2025, the limit comes to CZK 11,499.
Be careful: contributions are now payable from earnings of CZK 11,500 (meaning the highest amount without contributions ends in CZK 99, as with DPČ agreements).
| DPP earnings | Social insurance contributions | Health insurance contributions |
| up to and including CZK 11,499 | no social insurance contributions | no health insurance contributions |
| CZK 11,500 and above | 7.1% employee social insurance
24.8% employer social insurance |
4.5% employee health insurance
9% employer health insurance |
The higher limit also applies to withholding tax. If the employee does not sign a taxpayer’s declaration, withholding tax is deducted from earnings up to and including CZK 11,499.
Compulsory DPP reporting
The reporting system introduced in the summer will continue. Employers will still be required to submit a monthly statement of income paid to employees working under DPP agreements (VPDPP).
There will therefore be no major changes (the planned notified-agreement regime) apart from the new limit, and the system essentially stays as it is.
New DPČ contribution threshold
The DPČ threshold also changes from 1 January 2025, to 1/10 of the average wage. For 2025, this comes to CZK 4,499. Up to this limit, you do not need to deal with contributions.
| DPČ earnings | Social insurance contributions | Health insurance contributions |
| up to and including CZK 4,499 | no social insurance contributions | no health insurance contributions |
| CZK 4,500 and above | 7.1% employee social insurance
24.8% employer social insurance |
4.5% employee health insurance
9% employer health insurance |
The threshold for small-scale employment is also increasing; traditionally, it is the same as the DPČ contribution limit. For 2025, it is therefore CZK 4,499. If agreed remuneration under a DPČ agreement, regular employment contract or managing director’s arrangement is below CZK 4,499 per month, or is agreed only as an hourly rate (typical for DPČ), it is small-scale employment.
If you cannot find your way through the payroll jungle, get in touch and we will find the way together. 🙂