Calculation of the monthly assessment base for social insurance for self-employed persons
To calculate the monthly assessment base, you first need to know the tax base of the self-employed person, which can easily be calculated as the difference between income and expenses for 2023 (gross annual profit). Until 2023 the annual assessment base was set at 50% of the tax base, from 2024 it is 55%. The monthly assessment base is then one-twelfth of the annual assessment base. If the calculated assessment base is higher than the minimum assessment base, the social security contribution is 29.2% of the calculated assessment base.
Minimum social security contributions for self-employed persons in 2024
- For the main activity: CZK 3 852
- For secondary activities: CZK 1 413
- The social insurance advance is due by the end of the month for which the advance is paid.
Minimum health insurance advances for self-employed persons in 2024
The calculation of health insurance for self-employed persons remains unchanged. The amount of the assessment base and the minimum assessment base remain unchanged, which means that health insurance advances will only increase if the average wage increases. Monthly advances for next year will be calculated on the basis of the previous year’s income and will amount to 13.5% of the assessment base (50% of the tax base). If this calculated advance is lower than the minimum advance, the self-employed pay the minimum advance.
The minimum advance payment for health insurance is 13.5% of half of the average wage. This means:
- For the main activity: 2 968 CZK
- For secondary activities: self-employed persons carrying out secondary activities do not pay any advance payments, and any insurance premiums are calculated on the basis of actual income.
The due date for payment of the advance payment for health insurance is the 8th day of the following month. The new advance payment amounts apply from the beginning of 2024, so the first increased advance payment for January 2024 is due by 8 February 2024.
Minimum flat-rate tax for self-employed persons in 2024
The monthly flat-rate tax in 2024 is:
- Band 1: CZK 7 498 (min. health. CZK 2,968, social insurance: CZK 4,430, income tax: CZK 100)
- Band 2: CZK 16 745
- Band 3: CZK 27 139
Entry into the flat-rate scheme is voluntary and can be applied for until 10 January 2024 at the latest.
