The Government Has Approved a Reduction in Social Security Contributions for the Self-Employed

The Chamber of Deputies has approved a bill that changes the originally adopted plan to increase social security contributions for self-employed individuals. According to the original schedule, from January 2026 the minimum monthly assessment base was to be set at 40% of the average wage, which would amount to CZK 19,587, with corresponding monthly social security advances of CZK 5,720.

However, in March 2026, the government approved a proposal to reduce this base to 35% of the average wage, which corresponds to CZK 17,139 in 2026. Thanks to this change, the minimum monthly social security advances will decrease to CZK 5,005, bringing self-employed individuals relief of CZK 715 per month in their minimum advance obligations.

The change is expected to take effect from January 2026. Self-employed individuals will have the option either to request a refund of overpaid advances or to settle the amount when submitting their income and expense report for 2026.

The maximum assessment base remains unchanged and continues to be set at 48 times the average wage, which corresponds to CZK 2,350,416 in 2026.

Author: Martin Starý, Tax Consultant