The Chamber of Deputies has definitively confirmed the amendment to the Social Security Insurance Act, which extends the existing Antivirus program with a new C regime. According to the amendment, payments of social security contributions for the months of June, July and August shall be waived. It will apply to companies with 50 employees or less. The bill waives that part of the social security premium paid by employers, i.e. 24.8% of the total income of their employees, for the months of June, July and August.
To obtain the forgiveness of insurance premiums, it is necessary to meet three basic conditions:
- Maximum of 50 employees who participate in sickness insurance.
- The number of employees found in each of these three months is not decrease by more than 10% compared to the number of employees in March 2020.
- Employers must pay at least 90% of wages as in March 2020.
Compliance with these conditions will be assessed on a monthly basis. Employers are also required to pay employees‘ social security premiums on time. In addition, in the relevant calendar month, they cannot draw funds from the Antivirus program in mode B.
However, this relief does not mean a flat-rate waiver of premiums. It will apply only to social security charges from the assessment base up to the amount of CZK 52,253 per employee, i.e. 1.5 times the average wage. If, for example, the employee’s assessment base for social security amounts to CZK 100,000, the premium will be paid from the amount of CZK 47,747 (CZK 100,000 – CZK 52,253).
Furthermore, the insurance premium will be paid from the assessment base of the employee to whom the employer gave termination notice according to § 52 a) – c) of the Labor Code.