Payroll
How Much Do DPP and DPČ Agreements Cost in 2026?
· 3 min read
Work agreements appear cheap until the remuneration exceeds the statutory threshold. Once exceeded, employer costs jump sharply by 33.8%. Here are the 2026 limits and two model calculations.
Quick take
- For a DPP (Agreement on Work Performance), mandatory insurance participation arises at a remuneration of CZK 12,000 per month or more.
- For a DPČ (Agreement on Work Activity), the participation threshold is CZK 4,500 per month.
- Remuneration from all agreements with the same employer is aggregated to assess the threshold.
- A DPP is subject to an annual limit of 300 hours worked per calendar year per employer.
Limits and contributions on work agreements in 2026
Below the threshold, only personal income tax is withheld from the remuneration; above it, statutory social security and health insurance contributions apply to both the employer and the employee.
| Parameter | DPP (Agreement on Work Performance) | DPČ (Agreement on Work Activity) |
|---|---|---|
| Threshold for mandatory insurance | CZK 12,000 / month | CZK 4,500 / month |
| Maximum scope of work | Max. 300 hours per year per employer | Max. half of standard weekly working hours on average |
| Insurance contributions below threshold | Exempt | Exempt |
| Insurance contributions above threshold | Employer 33.8%, employee 11.6% | Employer 33.8%, employee 11.6% |
| Minimum hourly rate | At least minimum wage CZK 134.40/hr | At least minimum wage CZK 134.40/hr |
Model calculation: DPP at CZK 11,999
A monthly remuneration of CZK 11,999 remains below the threshold, so no social security or health insurance contributions are due. The total employer cost is therefore CZK 11,999. Advance or final withholding tax is deducted from the employee depending on whether they signed the Taxpayer Declaration (Prohlášení poplatníka). With a signed declaration and basic taxpayer tax relief, the net pay is practically the full gross amount.
Model calculation: DPP at CZK 13,000
A remuneration of CZK 13,000 exceeds the limit, triggering full social and health insurance contributions. • Employer cost: CZK 13,000 + 33.8% = CZK 17,394. • Deductions from employee: 11.6% insurance contributions (CZK 1,508) plus advance personal income tax. A difference of just CZK 1,001 in gross pay increases the total monthly cost to the employer by almost CZK 4,400.
Key administrative requirements to watch out for
Employees on work agreements must be reported to ČSSZ (Czech Social Security Administration) via the unified monthly employer report, and to the health insurance fund once the threshold is exceeded. Agreements must be executed in writing before work begins, and working hours must be formally tracked. Concurrent agreements with the same employer are aggregated for threshold purposes — this is the most frequent source of back-payments and penalties during tax and payroll audits.
What to do now
- 1Check that the sum of remuneration from all agreements for a single employee does not exceed the relevant threshold.
- 2Verify compliance with the annual 300-hour limit for DPP and maintain accurate working time records.
- 3For regular work exceeding the limit, consider offering a part-time employment contract with standard leave entitlement instead.
When to call an accountant
When an employee works under multiple agreements, combines an agreement with an employment contract, or when remuneration hovers right around the statutory threshold.
Frequently asked questions
- Is an agreement worker entitled to paid annual leave?
- Yes, provided the statutory conditions regarding hours worked and duration are met, entitlement to paid holiday also applies to work agreements.
- Are agreements across different employers aggregated?
- For the insurance threshold, each employer is assessed separately; however, personal tax liabilities are settled in the annual tax reconciliation or personal tax return.
- Is an initial occupational medical check mandatory for a DPP?
- Generally no for non-hazardous work (Category 1), but mandatory for hazardous categories, night work, and juvenile workers.
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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