Here is an overview of the changes planned for 2019:
1.Advances in 2019:
In 2019, the average wage will be 32,699Kč (calculated base 30156Kč * coefficient 1.0843Kč) This amount has therefore increased by 2720Kč compared to 2018.
The decisive income is increased to the amount of 3000Kč, it is a new limit of the so-called small-scale employment. This means that social insurance will not be paid for monthly income up to 2999Kč.
|Maximum assessment base||1.438.992Kč||1.569.552Kč|
|Minimum annual assessment|
base for the HČ (main activity)
Minimum annual assessment base
of the IR (secondary activity)
|Minimum monthly assessment |
base for the HČ
|Minimum monthly assessment |
base of the employee
|Minimum monthly advance payment of the HČ||2.189Kč||2.388Kč
|Minimum monthly advance payment to |
the National Insurance
|Decisive amount for the IR||71.950Kč||78.478 Kč
|Minimum assessment base for sickness |
benefit for self-employed persons
|Minimum sick pay||115Kč||138Kč
Increase in the minimum base for the contribution of the National Health Insurance in the range of CZK 800 – CZK 1,500.
The amendment to the Act on General Health Insurance Premium published in the Collection of Laws No. 297/2017Sb, sets the assessment base for the payment of insurance premiums by the state at CZK 7,540 (the premium on this amount is CZK 1,018) for 2019, with effect from 1 January 2020 the assessment base for the payment of insurance premiums by the state at CZK 7,903 (the premium on this amount will be CZK 1,067.
Another plan is to increase the limit for insurance premiums for work performance agreements, the amount under consideration is CZK 11,500.
|Minimum assessment base||14.990Kč||16.349,50Kč|
|Minimum monthly advance payment||2.024Kč||2.208Kč|
2.Wage replacement 2019
Due to the reduction thresholds, this compensation, provided by both the employer and the CSSA, will increase.
Currently, according to Section 192 of the Labour Code, the provision is valid during the first 14 calendar days of illness and from the 15th day onwards the employee is provided for by the ČSSZ. The average earnings are adjusted through the reduction thresholds set out in Section 22(3) of the Sickness Insurance Act. In 2019, they will be based on the 2017 assessment base.
Average hourly earnings for wage replacement are determined in the same way as earnings for employment purposes, i.e. from the previous calendar quarter. If the employee does not work for at least 21 days, the probable earnings are used in accordance with Section 356 of the Labour Code.
Procedure for calculating the hourly reduction threshold for wage replacement from the reduction threshold (RH) for sickness insurance:
First RH: 1 090 × 0.175 = CZK 190.75
Second RH: 1 635 × 0.175 = CZK 286.125
Third RH: 3,270 × 0.175 = CZK 572.25
1st RH: 190.75 × 0.9 = 171.675 CZK
2nd reduction threshold: (286,13 – 190,75) × 0,6 = 95,38 × 0,6 = 57,228 CZK
3rd reduction threshold: (572,25 – 286,13) × 0,3 = 286,12 × 0,3 = 85,836 CZK
Any amount higher than the 3rd reduction threshold is disregarded.
Maximum adjusted reduced base: CZK 171,675 + 57,228 + 85,836 = CZK 314,739.
Calculate the hourly wage replacement from the adjusted average hourly earnings due from the 4th working day of temporary disability. The wage replacement shall be rounded to the nearest penny, rounded up to the nearest whole crown for the entire calendar month.
Compared to 2018, the employee will improve his/her wage compensation by a few crowns, and if the withdrawal period is abolished, he/she will improve much more.
Abolition of the three-day withdrawal period
Today’s form of sick pay was introduced in 2009 and is paid in the first 14 days (from the 4th missed shift or 25th missed hour)
An amendment to the law has passed its first reading, which should abolish this penalty period from 2019. The reason for this is that during these three days the employee is left destitute, with the obligation to pay insurance premiums still remaining. To at least give themselves some help, employees take ordinary leave for short-term sickness, which is most commonly used by those subject to the minimum wage (in 2018, hourly 73.20Kč)
For employers, this move may mean an increase in costs in the form of increased wage replacement payments, which some employers are already addressing by offering sick days, the option to work from home if the job description is appropriate.
Source : https://www.podnikatel.cz/clanky/nahrada-mzdy-v-roce-2019-vzroste-od-ledna-mozna-od-cervence/
3.From 1 January 2019, changes in the payment of social insurance premiums by self-employed persons:
Sickness insurance premiums:
From January 2019, the minimum monthly basis for calculating the insurance premium will increase to CZK 6,000, the minimum insurance premium for NP for January 2019 and subsequent months will be CZK 138 instead of CZK 115.
- The premiums are payable from the 1st to the last day of the month: example – the premium for March is thus payable from the 1st to the 31st of March.
- Deposits for December 2018 are payable from 1 January to 21 January 2019 in the amount of CZK 115
- Contributions for January 2019 are payable in January between 1 January and 31 January 2019 in the amount of 138 CZK
For the calendar month in which the self-employed person has registered for sickness insurance, the NP insurance premium is payable from the date of registration until the end of the following month: example – registration from 5 April; the premium for April must be paid from 5 April to 31 May, otherwise sickness insurance will not arise on 5 April – if the premium has not been paid in April, the premium for both April and May should be paid in May in the amount of at least 2 x CZK 138, i.e. a total of CZK 276.
The advance is payable from the 1st to the last day of the month: example – the advance for January is payable from the 1st to the 31st of January.
For the calendar month in which the self-employed person has commenced activity, the advance is payable from the date of commencement of activity until the end of the following month: example – if the self-employed person commenced activity on 10 March, the advance for March is payable from 10 March to 30 April; if the advance for March is paid after 30 April, the advance for the period from 1 May is penalised.
There is no obligation to pay an advance for December 2018; any amounts paid in January 2019 as advances will be treated as an advance for January 2019. There will be 11 months of advance premium payments for 2018 that will be counted against premiums on the premium statement for that year. The advance payment for December can be paid voluntarily by the self-employed after December 20, 2018.
Old-age, disability, widow’s, and orphan’s pensions that were awarded before January 1, 2019, will be increased as follows:
a) the basic pension rate shall be increased by CZK 570 per month
b) the percentage of the pension shall be increased by 3,4 % of the percentage of the pension due on the date from which the percentage is increased
The amendment to the Pension Insurance Act, number 191/2018 Coll., increases pensions by CZK 1,000 for pensioners who have reached the age of 85 before 2019. The first instalment will be payable from January 2019.