Social insurance

Pension and sickness insurance is based on the insurance principle, i.e. regular payments of contributions - premiums. The rules are laid down in Act No. 589/1992 Coll. on social security premium and contributions to the state employment policy, as amended.

Employers, employees, persons participating voluntarily in the pension insurance and self-employed persons, if they participate in the pension insurance, are obliged to pay social security premiums (hereinafter the “premiums”) and contributions to the state policy of employment. Employers pays premiums for their employees.

Each person (employee, self-employed) is registered in the Czech social insurance system under one personal identification number, which is usually the birth number or registration number of the insured.

You can find out more at Insurance number.

The premiums are always paid in the Czech currency (CZK) to the relevant account of the competent DSSA. The date when the payment is credited to the account of the competent social security administration is the date of payment. Each employer and self-employed is given the account number and other required details during the registration process.

The premiums cannot be paid or transferred to another social security scheme after the termination of the employment relationship, the Czech legislation does not allow this. However, the premiums paid are not “lost” but are taken into account in accordance with the so-called European Union coordination regulations or rules in bilateral international social security cooperation agreements.

Social security premiums shall include the payments for:

• sickness insurance (compulsory for employees, voluntary for the self-employed),

• pension insurance (compulsory for both the employees and self-employed),

• contribution to the state employment policy (payments are paid mandatorily by both the employers and self-employed).

For information regarding the voluntary pension insurance.

Note: Health insurance is the responsibility of health insurance companies, for more information please http://www.kancelarzp.cz/index.php/en