Last year, we reported on planned changes in the field of agreements on the performance of work (WPAs), which were supposed to take effect from 1 January 2024, later from 1 July 2024. However, the changes were extremely complicated and at the same time, there was a risk that they would be essentially unfeasible in practice.

Based on comments from the expert public, the Chamber of Deputies approved a compromise proposal. The new regime should be based on the following principles:

From July 1, 2024, employers are obliged to report WPAs to the CSSA every month, by the 20^th of the following month. However, health and social insurance contributions and taxes will not change until the end of 2024 for WPAs.

From 1 January 2025, following changes will take place for WPAs:

• Each month, the employee can define which of the concluded WPAs will be the so-called reported agreement (the main one), where the limit for social and health insurance would in principle remain at the current level, i.e. 25% of the average wage (for 2024, it is by CZK 10,500).
• Any employer who electronically notifies the Czech Social Security Administration of the “main” agreement can simply check online that another employer has not reported such an agreement earlier. The higher limit (i.e. 25% of the average salary for the given year) would be with the employer who announced the agreement first.
• For all other WPAs, the limit for premium contributions will then be CZK 4,000.