Trade Licence Holders Won’t Pay Social and Health Insurance Contributions for Half a Year

Due to the state of emergency and coronavirus pandemic in the Czech Republic, Czech senators passed the law which will support trade licence holders and self-employed people. What has been decided?

Trade licence holders and self-employed personas in the Czech Republic will be exempted from paying minimum monthly social and health insurance contributions for the period of the half a year  – from March till August 2020. 

Trade licence holders who pay monthly health insurance contributions at the minimum rate of 2 352 CZK,  don’t have an obligation to pay any social and health insurance contributions for the period from March 1 to August 31, 2020. The full amount of the contribution for this period will be waived. However, a contribution exemption does not apply on sick pay in case a person has been paying it. This payment won’t be cancelled.

The trade licence holders will be excused from paying the contributions.

In case a trade licence holder pays insurance contributions in the amount higher than minimum rate, they will only have to pay the difference between the minimum rate and the amount they usually pay. They have a right to pay the contribution difference described above any time during the year of 2020 either in different payments or all at once. 

Right now we are offering a 20% discount on most of our services including the trade licence! Do not hesitate to contact us at info@foreigners.cz.

Some information regarding this issue in the Czech language: https://www.kurzy.cz/zpravy/537029-zmeny-u-plateb-na-zdravotni-pojisteni-v-souvislosti-s-epidemii-covid-19-vzp-cr/

In case you are planning to get your trade licence, learn all about the necessary arrangements here

Karyna Kovchak

Karyna Kovchak

Hello everyone! Ukrainian girl passionate about traveling, discovering diverse cultures and learning new things. It will be my pleasure to share with you useful information about life in the Czech Republic. Enjoy the journey :)

4 thoughts on “Trade Licence Holders Won’t Pay Social and Health Insurance Contributions for Half a Year

  1. Hello,
    I run a guesthouse for tourists through my s.r.o. company. I do not have a trade licence. Will I be included in “self employed persons” and be exempt from social and health insurance payments for this six month period?

  2. Dear Karyna, Iam holding s.r.o. trade licence with my wife as partner and myself as Managing Director of the company. Are we entitled for compensation bonus and 6 months waiver of our health insurance premiums plus insurance paid for our shop and house. Kindly advice. Thanks.

    1. Dear Chandrasen,

      all trade licence holders are entitled to the compensation and won’t have to pay the health insurance if they meet the conditions set by the Ministry of Finance (though I am not sure about the insurance you’ve paid for your shop and house).
      More information about the compensation can be found here. As for the insurance, you can learn more here. Both articles are, unfortunately, in Czech, so you’ll have to use some online translator, but there are no such articles in English (at least not as detailed).
      You can also schedule a consultation with one of my colleagues who will be able to give you a detailed piece of advice 🙂

      Kind regards and fingers crossed,

      Anna

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