The Agreement on Work Performance (Dohoda o provedení práce – “DPP”) is a type of contractual relationship between an employee and an employer. A DPP agreement does not include a probationary period, must be agreed upon in writing, and must contain:
-
- the duration of the agreement,
- a description of the task or activity,
- the agreed remuneration,
- the scope of work (max. 300 hours).
An employee can enter into multiple DPP agreements with different employers. In 2025, there were plans to tighten restrictions and limit the number of DPP arrangements, but this has been canceled. From 2025, there will be no monitoring of the number of DPP agreements entered into. The only change will be an increase in the limit for exemption from health and social insurance contributions. The new limit will be 25% of the average wage. From 2025 amounts from CZK 11,500 will be subject to social and health insurance payments. If multiple agreements are concluded with one employer, the income is aggregated.
Cancellation of the “Reported Agreement” Regime
The original version of the legislative proposal included the introduction of two limits for contributions under DPP agreements. The first, a “reported agreement,” would have been registered with the Czech Social Security Administration and subject to a higher exemption limit (25% of the average wage, CZK 11,500 in 2025). An employee could have only one reported agreement, regardless of the number of employers. The rule was “first come, first served” for applying this limit. Other simultaneous agreements would have fallen under a lower limit, with contributions starting from CZK 4,500. This proposal has been abandoned.
However, employers are still required to report all DPP agreements to the Czech Social Security Administration, including those exempt from insurance contributions, as per the regulations introduced in July 2024.
Part-Time Work for 14-Year-Olds
Starting in 2025, the minimum age for employing minors will be reduced to 14 years. However, there are restrictions: the work must be classified as “light work” and must adhere to legally permitted limits. This change allows young people to gain their first work experience through summer jobs, provided the work meets the conditions of light work, is performed within the legal scope, and complies with protective measures for young workers.
New Insurance Contribution Limits
For 2025, higher contribution limits will apply:
- For DPP agreements, the contribution exemption limit will increase to CZK 11,500 (up from the current CZK 10,000). Monthly income from DPP of CZK 11,500 and higher will be subject to social and health insurance payments of both the employer as well as the employee.
- For the Agreement on Work Activity (DPČ), the exemption limit will increase to CZK 4,500 (from CZK 4,000). Monthly income from DPČ of CZK 4,500 and higher will be subject to social and health insurance payments of both the employer as well as the employee.
Overview of Contribution Limits for DPP and DPČ Agreements:
|
2024 |
2025 |
|
|
DPP (exempt from contributions) |
up to 10 000 CZK |
up to 11 499 CZK |
|
DPČ (exempt from contributions) |
up to 3 999 CZK |
up to 4 499 CZK |
Sick Leave and DPP Agreements
Participation in sickness insurance for employees under DPP agreements will only occur in months when the contribution limit is exceeded. Employees will be eligible for sickness benefits if they meet the condition of insurance contributions for the month they take sick leave.
Abolition of Written Vacation Schedules
Employers will no longer be required to prepare written vacation schedules, reducing administrative burdens.
Self-Scheduling of Shifts
As of January 1, 2025, employees and employers may agree in writing that employees can schedule their own shifts. Previously, self-scheduling was explicitly allowed only for remote work. Now, such agreements will also be permitted for work performed at the employer’s workplace.
Rules for Agreeing on Remuneration
For DPP/DPČ agreements, it was proposed to explicitly allow remuneration to account for factors such as night work, work in difficult conditions, or work on weekends and holidays. This means that employees and employers can agree in advance on the extent and amount of remuneration that reflects specific working conditions, eliminating the need for separate bonuses and reducing administrative burdens for employers.
Changes already in effect from Mid-2023 and Early 2024
- Vacation: Employees under DPP or DPČ are entitled to vacation if their employment relationship lasts at least 28 consecutive days and they work a minimum of four times a fictitious 20-hour weekly schedule. (80 hours)
- Work Obstacles: Employers must excuse employees’ absences due to personal obstacles, but no remuneration is due for this time.
- Written Work Schedules: Employers must prepare and provide employees with a written schedule of shifts at least three days in advance unless a shorter notice period is agreed upon.
- Night/Weekend/Holiday Pay: Employees under DPP/DPČ are entitled to the same bonuses as those under standard employment contracts.
- Employee Records: Since July 1, 2024, employers must maintain records of all employees working under DPP agreements.