From 1 January 2019, an amendment of acts related to pension and health insurance is taking effect, that brings significant changes in the agenda of self-employed persons’ mandatory insurance. The most important changes relate especially to the regime of advance payments of social and sickness insurance premiums, the due dates and the minimum advance payments amounts.
New due dates for advance payments
From January 2019, advance payments of pension and sickness insurance premiums will already be paid in the month, to which performance of self-employed activity relates. Instead of the original due date for advance payments of the premium, which was from the 1th to the 20th day of the subsequent month, the new due date will be from the first to the last day of the calendar month, for which the insurance premium is paid. The form of payment does not change, it is still necessary to state the assigned variable symbol identifier when paying the advance payment and to remit the premium to the specified bank connection of the Social Security Administration.
The change in advance payments of insurance premium has occurred mainly due to the option of accelerated issuing of annual overviews of advance payments on the side of the Social Security Administration, which previously had to wait until the due date of the last advance payment, i.e. until 20 January of the following year, to issue an overview of advance payments.
To avoid any confusion, there is no change in connection with advance payments for health insurance. These are still due by the 8th day of the following calendar month.
Minimum monthly social insurance payments
The new minimum monthly base of assessment for pension insurance for self-employed persons performing primary activity reaches CZK 8,175 for the year 2019.
This base of assessment will only apply from January 2019 for self-employed persons, who begin their self-employment in the year 2019. If a self-employed person is paying advance payments of insurance premium in the year 2018 in minimal height, it may continue to pay in this way until the month, when he or she submits or should have submitted the Annual Insurance Report of income and expenses for the year 2018.
- The minimum monthly advance payment of pension insurance premium for the year 2019 for self-employed persons performing primary self-employment activity reaches CZK 2,388;
- The minimum monthly advance payment of pension insurance premium for the year 2019 for self-employed persons performing secondary self-employment activity reaches CZK 955.
The minimum advance payments are generally due by self-employed individuals in the course of the first year of business activity and also by freelancers whose assessment base from the previous year is lower than the minimum assessment base.
Minimum monthly sickness insurance payments
The minimum base of assessment for sickness insurance increases due to the increase in average wages and is set at CZK 6,000 in the year 2019. The minimum monthly payment of insurance premium thus increases from the original CZK 115 (advance payments are paid until the end of the year 2018 in this sum) to CZK 138.
Minimum monthly health insurance payments
The minimum amount of advances is calculated from the minimum assessment base.
From 1 January 2019, the minimum annual assessment base is CZK 196,194, the minimum monthly assessment base is CZK 16,349.50 and the minimum monthly advance payment for the premium is CZK 2,208. The first minimum advance payment in this height must be paid already for January, i.e. until 8 February 2019.