Social Security Premium

Employers, employees who are participants in sickness and pension insurance, self-employed persons, and people who have voluntarily signed up for pension insurance are obliged to pay insurance.

The legal regulations of premiums are contained in the Act No. 589/1992 Col., on Premiums for Social Security and Contribution to the State Policy of Employment, as amended. Premiums are income o the state budget and it includes:

• premiums on sickness insurance

• premiums on pension insurance

• contribution to the state policy of employment

(Does not include premiums for health insurance, which is collected by health insurance companies.)

The amount of premium is determined by a percentage rate from the basis of assessment established for the decisive period. This is for employers the calendar month, for which premium is paid. For self-employed persons, the period concerned is a calendar year and the assessment base for calculating the insurance premium is the amount that they themselves determined, but not less than 50% of the tax base.

Latest modifications 28. 2. 2012