Running your own business requires constant attention—not only to customers but also to changes in the law. The Czech Social Security Administration (ČSSZ) has issued important information for all self-employed individuals. Effective July 1, 2026, a significant amendment to Act No. 589/1992 Coll., on Social Security Contributions and Contributions to State Employment Policy, will take effect. This amendment brings good news: the minimum assessment base is being reduced, which means immediate savings on monthly advance payments for thousands of entrepreneurs. In this article, we’ll look at who these changes affect, how they’ll impact your wallet, and how you can get back the extra money you paid to the government in the first half of the year.
What will change as of July 1, 2026?
The main point of the legislative amendment is a reduction in the minimum monthly assessment base for insurance premiums from the current 40% of the average wage to 35% of the average wage.
In practice, this translates to the following changes in figures:
- Original minimum advance payment (until June 30, 2026): 5,720 CZK per month
- New minimum advance payment (effective July 1, 2026): 5,005 CZK per month
This change applies to self-employed individuals engaged in their primary self-employment activity who currently pay advance payments of at least 5,720 Kč and whose insurance premiums for the entire year 2026 (calculated based on their 2025 income and expense statement) were set at this minimum threshold.
How Will This Change Affect Your Wallet? (Real-Life Examples)
The new advance payment amount is based on your business income from the previous calendar year. Until now, if your monthly assessment base (corresponding to 55% of the partial tax base converted to a single month) was less than 19,587 CZK, you had to pay a fixed minimum of 5,720 CZK.
Starting in July 2026 (beginning with the July advance payment), the calculation will be based on the new rules:
1. Your monthly income did not exceed the new minimum (less than 17,139 Kč)
If your adjusted monthly income was less than 17,139 Kč, a new minimum advance payment of 5,005 Kč will be automatically set for you.
2. Your monthly income falls within the “intermediate range” (17,139 Kč to 19,587 Kč)
If your actual monthly income in 2025 (or 2024) was lower than the original minimum but higher than the new minimum, your new advance payment will be calculated precisely based on your actual income.
Example: If your monthly income in 2025 was 18,560 Kč, your new advance payment will be 5,420 Kč starting in July (instead of the original 5,720 Kč). Total Savings for 2026.
If you are engaged in your primary activity throughout the entire calendar year 2026 and fall below the new threshold, you will save a total of 8,577 Kč on pension insurance premiums and contributions to the state employment policy. The actual impact and final calculation of the savings will be fully reflected when you file your income and expense statement for 2026.
How do you determine your new advance payment amount?
You don’t have to do any complicated calculations. The Czech Social Security Administration (ČSSZ) will publish the new advance payment amounts for insurance premiums, which will apply to you starting in July 2026, no later than July 10, 2026. You can find this information online on the ČSSZ ePortal under the service “Information on Advance Payments for Pension Insurance for Self-Employed Persons.”
Keep an Eye on the First Half of 2026: How to Get Your Overpayments Back?
Although the reduction in advance payments does not take effect until July 2026, the government has decided to take a fair approach. For compensation purposes, the Czech Social Security Administration (ČSSZ) will recalculate advance payments for January through June 2026 as if the new rules had been in effect since the beginning of the year. This will determine whether you paid more in the first half of the year than the new calculation requires.
If you properly paid the minimum advance payments of 5,720 Kč from January through June, you now have two options for handling the resulting difference:
Option A: Request an immediate refund
You can request a refund of the amount by which your advance payments exceed the new legal requirements from the relevant social security administration no later than the end of 2026.
Example: If your advance payment, according to the new calculation, should have been 5,420 Kč, but you paid 5,720 Kč, you have an overpayment of 1,800 Kč (6 × 300 Kč) over 6 months, for which you can request a refund. The deadline for the refund to be credited to your account is 2 months from the date the request is submitted.
Option B: Have the money carried over to future months or the annual settlement
You can request in writing that the overpayment be used to cover advance payments for future months. If you do nothing at all, you will not lose the money—the amount will automatically be credited toward your paid premiums as part of the annual settlement of your income and expense statement for 2026, and any remaining overpayment will be refunded to you only after that.
Good news for latecomers: If you paid less than the mandatory minimum of 5,720 Kč in the first half of the year, but your payment covered the newly calculated (lower) advance payment, the penalty on the unpaid difference (300 Kč) is automatically waived.
How do you properly submit a request for a refund of the overpayment?
There is no special form for this purpose. You can submit your request entirely electronically by any method that allows for verification of your identity:
- Via a data box.
- By email with a recognized electronic signature.
What must the request include?
- Clear information stating that you are requesting a refund of insurance premiums in connection with the amendment to Act No. 589/1992 Coll., effective July 1, 2026.
- The method of payment for this amount and the exact bank account number to which the money is to be sent.
Note: You do not need to specify the exact amount in the request; the Social Security Administration will calculate and determine it on its own.
Does the change also apply to the flat-rate regime?
If, in 2026, you are operating under the flat-rate tax regime in the first flat-rate bracket, this communication from the Czech Social Security Administration (ČSSZ) does not contain direct instructions for you. Information on how the legislative changes will affect the payment of your flat-rate taxes will be provided directly by the Financial Administration (your local tax office).
Are you confused about your advance payments? Leave it to the professionals!
Legislative changes can be confusing, and an incomplete application or a poorly set up standing order can cost you unnecessary time and money. If you’re unsure whether the recalculation applies to you, or if you want to prepare a precise application for a refund of overpayments for the first half of the year, contact our accounting firm. We’ll handle all communication with the Czech Social Security Administration (ČSSZ) and the Tax Office, monitor the ePortal, and ensure that your business operates in full compliance with the law.
