The Czech Parliament has now adopted Act No. 323/2025 Sb. introducing the Unified Monthly Employer Reporting system (Jednotné měsíční hlášení zaměstnavatele – JMHZ), effective from 1 January 2026. This reform will replace several existing obligations and significantly reshape how employers report employment and payroll data to the authorities.
For an overview of the initial proposal and system design, see our February 2025 article.
What Is the JMHZ?
The JMHZ is a comprehensive monthly report that consolidates data currently submitted to the Czech Social Security Administration (ČSSZ), the Tax Office, Labour Office, and other institutions. While the system does not include health insurance reporting, it will replace:
Registration and deregistration of employees with ČSSZ
Monthly social security contribution summaries (přehled o výši pojistného)
Pension insurance record sheets (ELDP)
Annual tax withholding statements (from 2027 onwards)
Reporting of certain employment data to the Labour Office and Czech Statistical Office
Scope of Reporting
Employers will be required to report detailed individual data for each employee, including those not covered by sickness insurance (e.g. DPP and low-income agreements). The report includes:
Wage details, tax advances, insurance contributions
Use of tax benefits (e.g. child tax credit)
Absences, working time, holidays
Educational attainment (for statistical purposes)
Every employee and employment relationship will be assigned a permanent identification number, with ČSSZ distributing these by April 2026.
The JMHZ form will consist of:
Employer-level summary: total payroll tax advances and insurance contributions
Employee-level summary: taxes and contributions withheld
Detailed per-employee data: income, insurance, tax reliefs, and more
Reporting and Filing Deadlines
| Period | Obligation |
|---|---|
| January 2026 | Employers must begin tracking data in payroll systems |
| April 2026 | First JMHZ reports due for January – April (by 20 May 2026) |
| April 2026 | Final switch to new registration method of employees |
| January 2027 | Full abolition of withholding tax on most employment income |
JMHZ reports will be filed electronically via ČSSZ (data box, ePortal, or API) and data will be redistributed automatically to other government institutions.
Impact on Payroll Administration
Employers will face increased reporting obligations, especially around:
Pre-employment reporting: Employee start dates must be reported before commencement, up to 8 days in advance.
Multiple agreements: All DPPs, DPČs, and even non-insured contracts (e.g. board members) fall under the JMHZ scope.
Non-submission penalties: Up to CZK 5,000 per employee for late or missing reports.
However, the system also brings long-term simplifications, including:
No more annual ELDP reporting
Abolition of annual payroll tax reconciliation reports (from 2027)
Improved pre-filling of employee tax returns via the DIS+ portal
Automatic reporting of foreign workers and compliance with employment quotas
What About Health Insurance?
Health insurance remains outside the JMHZ system. Employers must continue:
Registering employees with the relevant health insurance company
Filing monthly summaries of insurance premiums
Communicating changes independently from JMHZ
Withholding Tax Abolition (2027 Onward)
As part of the broader legislative package, withholding tax on employment income will be abolished from 2027. Instead, advance tax payments will apply to all types of income from employment, including:
DPP contracts under CZK 11,500/month
Low-income contracts under CZK 4,500/month
Non-resident director/board fees (already switching in 2026)
This change will likely increase the number of employees required to file personal income tax returns in the future.
Final Notes
Employers should start preparing now by reviewing payroll software compatibility, employee records, and internal processes. The new JMHZ system will bring greater transparency and efficiency—but only with proactive planning and system readiness.
If you need help understanding how these changes affect your business, feel free to contact us for personalized guidance.