Starting September 2020, entrepreneurs are obliged to make advance payments for health insurance and social security premiums once again.

Social Security

Act No. 136/2020 Sb. waived the obligation to pay monthly advance social security premiums from March to August 2020 for self-employed. Therefore, in September 2020, the self-employed are obliged to pay advance social security premiums for September at the standard amount again and continue to do so in the following months. The advance premium payment for September must be made between 1st and 30th September and, similarly, this also applies to the following months.

Health Insurance

Advance health insurance premiums are subject to similar rules. Unlike advance social security premiums, advance premiums for health insurance were only reduced by the minimum amount of CZK 2,352 for the period of March to August 2020. These advance premiums are to be paid at the original amount starting September 2020.

Another difference from social security is that advance health insurance premiums are payable from the first day of the calendar month for which they are paid until the eighth day of the following month. Entrepreneurs must thus pay advance premiums for September in full by 8th October and continue to do so in the following months.

Annual Social Security Premiums for 2020

It is also worth mentioning that the waiver to pay social security advance premiums will be, to a certain extent, reflected in the reduction of the annual social security premiums for entrepreneurs for 2020. Annual social security premiums will be reduced by six times the minimum amount of advance payment, i.e. six times CZK 2,544 for persons conducting business as their major activity, and six times CZK 1,018 for the self-employed with a subsidiary independent activity.

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