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Changes to DPP and DPČ Agreements in 2026
· 3 min read
Thresholds for mandatory insurance contributions under work agreements are shifting alongside the average wage, and reporting procedures are changing as well. Here is a summary of what applies and what is currently in preparation.
Quick take
- DPP: participation in social and health insurance starts from CZK 12,000 per month.
- DPČ: participation in social and health insurance starts from CZK 4,500 per month.
- Agreements are reported via the Single Monthly Employer Report (JMHZ).
- A transition to advance tax on all DPP income is currently in preparation.
New Threshold Amounts
Threshold amounts are linked to the average wage and change each year. For 2026, the applicable limits are CZK 12,000 for DPP (agreement to complete a job) and CZK 4,500 for DPČ (agreement on working activity). Exceeding the limit triggers compulsory social and health insurance contributions of 33.8% on the employer's side and 11.6% on the employee's side.
Changes to Reporting
Work agreements must be reported to ČSSZ (Czech Social Security Administration) through the unified monthly employer report (JMHZ – jednotné měsíční hlášení zaměstnavatele), even if the remuneration does not trigger compulsory insurance. Notification to the employee's health insurance fund is required only once insurance liability actually arises.
What Is in Preparation
Authorities are discussing a transition under which all income from DPP agreements would be subject to standard advance income tax (zálohová daň), effectively abolishing final withholding tax (srážková daň) on lower amounts. Until this change enters into force, the existing regime remains in effect. We recommend accounting for this potential adjustment when planning payroll budgets for the upcoming year.
What to Prepare For
Review total remuneration for employees with multiple agreements, verify timesheet records for DPP to adhere to the 300-hour annual cap, and ensure that agreements are not unlawfully substituting standard employment contracts.
What to do now
- 1Review all active agreements and their monthly remuneration levels.
- 2Verify records of hours worked and ensure compliance with the 300-hour limit for DPP.
- 3For regular ongoing work, consider switching to a part-time employment contract.
When to call an accountant
When dealing with concurrent agreements, seasonal recruitment, or planning the payroll budget for next year.
Frequently asked questions
- Is the 300-hour annual limit for DPP changing?
- The annual limit of 300 hours per calendar year with a single employer remains unchanged.
- Are multiple agreements with the same employer aggregated?
- Yes, to determine whether insurance participation arises, remuneration from agreements with the same employer is combined.
- When will advance tax apply to all DPP earnings?
- This is a proposed legislative change; until it takes effect, the current withholding tax regime continues to apply to remuneration below the threshold.
Sources
Author: FinTaxo expert team
Operated by: Zaklipso s.r.o.
Information valid as of: 17 August 2026
Czech original: read this article in Czech
This article is general information and does not replace individual tax, accounting or legal advice. Czech legislation changes frequently — verify the current wording or discuss your situation with us before acting on it.
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