Payroll
DPP and DPČ: Rules, Limits, and Contributions Without Mistakes
· 3 min read
Work agreements are flexible, but full of administrative pitfalls. Here is an overview of obligations for registering, record-keeping, and statutory contributions for Agreements on Work Performance (DPP) and Agreements on Working Activity (DPČ).
The Difference Between DPP and DPČ
An Agreement on Work Performance (DPP – dohoda o provedení práce) is limited by a maximum number of hours per calendar year for a single employer, whereas an Agreement on Working Activity (DPČ – dohoda o pracovní činnosti) is restricted by average weekly working hours. Each arrangement follows distinct rules regarding tax and social security/health insurance contributions.
Reporting Obligations
Employers are currently required to maintain records and report all agreements to the authorities, even those where income falls below the threshold for paying statutory insurance contributions. Failure to comply with this reporting duty incurs penalties, despite many businesses remaining unaware of it.
When an Agreement Ceases to Be Safe
If work performed under an agreement meets the characteristics of full-time dependent employment, authorities may classify it as hidden employment or illegal labour. It is essential to monitor these legal boundaries from the moment the working relationship is established.
Author: FinTaxo expert team
Operated by: Zaklipso s.r.o.
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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