Czech lawmakers (the Chamber of Deputies) have approved a proposal that would reduce the minimum monthly social security advance for self-employed persons (OSVČ) and also lower the monthly payment in the 1st band of the Czech flat-tax regime (paušální daň).
The proposal is not final yet — it still needs to pass the Senate and be signed by the President. If that happens and the law is published in the Collection of Laws (Sbírka zákonů) in time, the change could take effect from May 2026 (with the reduction applied retroactively from January 2026).
Below is a practical summary of what’s currently known, who may be affected, and what you can do about overpayments.
1) What exactly is being proposed?
A) Minimum social security advances (OSVČ main activity)
For 2026, the official minimum monthly advance for OSVČ main activity was set at CZK 5,720.
The proposal approved by MPs would reduce this minimum to CZK 5,005, i.e. – CZK 715 per month, and the change should apply retroactively from January 2026.
B) Flat tax (paušální daň) — Band 1
For 2026, the monthly payment in Band 1 is CZK 9,984.
According to the proposal, Band 1 would drop to CZK 9,162 (i.e. – CZK 822 per month).
2) Who should pay attention?
This topic mainly affects you if:
You are OSVČ main activity and you have been paying the minimum social security advance since January 2026 (CZK 5,720).
You are in paušální daň – Band 1 (and have been paying CZK 9,984 monthly).
If you pay higher than minimum advances (because your prior year income set a higher assessment base), the practical impact may be different or zero — the “minimum” change is most relevant to minimum payers.
3) Overpayments: what happens to the money already paid since January?
Because the reduction is expected to be retroactive, many OSVČ will likely have an overpayment at the Czech Social Security Administration (ČSSZ) for the months already paid in 2026.
A) If you are in the standard regime (not flat tax)
Most likely there will be three options for handling the overpayment:
Request a refund (ČSSZ pays the difference back).
Do nothing for now and deal with it later via annual reconciliation.
Ask ČSSZ to apply the overpayment to future advances (this will probably require a special request).
Practical note: If you have any outstanding debts to ČSSZ, the authority may offset amounts under general rules — so your “refund” may not always come back as cash.
B) If you are in paušální daň (flat tax), Band 1
The “refund mechanism” for flat-tax payers is not as straightforward as for standard regime payers. The proposal (and follow-up explanations) anticipates solutions, but the exact final process depends on the final wording of the law and any official guidance.
If you are in paušální daň, treat “how to get money back” as pending until:
the law is officially published, and
ČSSZ / the Financial Administration publish an official information note.
4) When would the lower advances actually start?
The bill has passed the Chamber of Deputies and is expected to go to the Senate next.
The earliest expected effective date could be May 2026, assuming the remaining steps are completed as soon as possible.
Important: Until the law becomes effective, the currently valid minimums (including CZK 5,720 for OSVČ main activity) remain the official baseline.
5) What should you do right now?
Here is the conservative approach I recommend to clients:
Don’t change your standing orders yet unless/until the law is effective (and ideally until you see official guidance).
If you are paying the minimum and you want to estimate your overpayment:
the monthly difference is expected to be CZK 715 for OSVČ minimum payers.
Watch for the final steps (Senate + President + publication). Once it’s published, you can decide what is best for you.
6) Need help as a new freelancer in Czechia?
If you’re starting OSVČ and want a structured, step-by-step overview of:
trade licence (živnost) types and setup,
taxes, health & social insurance,
flat tax vs standard regime,
invoicing basics, most common VAT triggers and admin,
key deadlines and reporting…
…that’s exactly what my Freelancer Starter Kit is for. You can get it here.