Changes to DPP contribution thresholds

The first change concerns contribution thresholds. Although these contribution rules were originally due to change on 1.7.2024, you can thankfully breathe easy for a little longer. Under the current proposal, the new contribution rules will apply only from 1.1.2025. The change mainly targets people working under several agreements and using the option of an “unlimited” number of DPP agreements up to CZK 10,000 without contributions.

 The contribution threshold will then depend on where you stand among the worker’s employers:

  • you are the primary employer – threshold 25% of the average wage (CZK 10,999 in 2025 according to preliminary information), 
  • you are the additional employer – threshold CZK 4,499 per month, the threshold for small-scale employment

 

If you are wondering what primary and additional employer mean, it is not about which DPP was signed first, nor which employer the worker chooses as their first or additional employer. It will simply be a race to see which employer “claims” the employee first. This will be done by sending a DPP notification to the ČSSZ. The employer that claims the employee first and declares itself the primary employer gains the advantage of not paying contributions up to CZK 10,999. An employer that does not get there first becomes an additional employer, subject to the lower CZK 4,499 threshold.

As mentioned above, these thresholds are currently estimates and may differ. They are based on the 2024 average wage, which has not yet been announced. From now on, contribution thresholds for agreements will therefore change every year. You will also need to monitor very carefully whether you are an employee’s primary or additional employer. It should be possible to check this online directly in the OSSZ interface.

DPP with the primary employer from 1.1.2025
up to CZK 10,999 inclusive (25% of the average wage) no social insurance contributions no health insurance contributions
CZK 11,000 and above, inclusive (25% of the average wage) 24.8% employer social insurance
7.1% employee social insurance		 9% employer health insurance
4.5% employee health insurance
DPP with an additional employer from 1.1.2025 (where one employee has several DPP agreements)
up to CZK 4,499 inclusive (small-scale employment threshold) no social insurance contributions no health insurance contributions
CZK 4,500 and above, inclusive (small-scale employment threshold) 24.8% employer social insurance
7.1% employee social insurance		 9% employer health insurance
4.5% employee health insurance

By the 20th day of the following month, the employer must provide the relevant OSSZ with earnings information for all agreement workers. Everything will therefore be very easy to check.

What changes will apply to DPČ?

The rules for employees working under DPČ agreements will not change. There will only be an increase in the contribution threshold to CZK 4,499.

Small-scale employment

In 2024, only DPČ agreements, standard employment contracts and managing director service agreements can qualify as small-scale employment (among the arrangements I encounter in practice). From 1.1.2025, the “additional agreements” mentioned above, with a threshold of CZK 4,499, will also fall into this category. Small-scale status follows from the agreement or contract and depends on the remuneration. If pay is below CZK 4,499 or is agreed only as an hourly rate (typical for agreements), it is small-scale employment.

Another change is that an “additional agreement”, with a CZK 4,499 threshold, will be treated as small-scale employment.

This means that, where several small-scale jobs run concurrently with one employer, for social insurance contribution purposes, their earnings will be added together. So, if you have an employee on a DPP for whom you do not win the race and the CZK 4,499 threshold applies, and that employee also works for you under a small-scale DPČ, the two agreements will be combined for the social insurance threshold, despite being different types. If the combined earnings exceed CZK 4,499, social insurance will be paid on the total. For health insurance, the threshold will continue to be assessed separately by agreement type, as before.

I consider this advanced territory and would leave working through it to your capable accountant. 🙂

We are already preparing an overview of changes relevant to our clients’ situations. If you would like to discuss yours, please get in touch. 🙂