Good News for Czech Freelancers: Your Social Insurance Payments Are Dropping from July 1, 2026 - And You Can Get Money Back Too

If you are a freelancer in the Czech Republic - meaning you run a trade license (živnostenský list) and are paying social insurance advances every month - we have genuinely good news for you. Starting July 1, 2026, your minimum monthly social insurance payment is going down by 715 CZK. And on top of that, you are likely owed a refund for the months already gone by this year.

We know Czech bureaucratic news tends to travel slowly to the expat community, so consider this your heads up.

1. What Happened and Why

Back in January 2026, as part of the Czech government's so-called "consolidation package", the minimum assessment base for freelancers' social insurance jumped from 35% to 40% of the average projected wage. In plain English: your minimum monthly social insurance advance went from 4,759 CZK (2025 level) all the way up to 5,720 CZK. That was a big jump.

Freelancers were not exactly thrilled. After significant pressure, the Chamber of Deputies overruled the Senate and passed a new law reverting the base back to 35% of the average wage. President Pavel signed it into law and it takes effect from July 1, 2026.

The result? Minimum social insurance advances drop to 5,005 CZK per month** - a saving of 715 CZK every month going forward.

2. The Numbers: What Changes from July 1, 2026

Here is a quick summary of the new minimums:

• Social insurance (sociální pojištění): Down from 5,720 CZK to 5,005 CZK/month
• Health insurance (zdravotní pojištění): Unchanged at 3,306 CZK/month

So if you are paying the minimums on both, your combined monthly obligatory contributions go from 9,026 CZK to 8,311 CZK - you keep an extra 715 CZK in your pocket every month from July onwards.

3. The Retroactive Part: You May Be Owed Up to 4,290 CZK Back

Here is where it gets interesting. The law does not just apply going forward - it acknowledges that freelancers paid too much from January to June 2026.

If you were paying the minimum social insurance rate, you overpaid by 715 CZK per month for six months. That adds up to 4,290 CZK that you can claim back.

How to Get Your Money Back

You need to submit a request (žádost) to your local social security office (OSSZ - the regional branch of the Czech Social Security Administration). The law gives the OSSZ up to 60 days to process and transfer the money to the bank account from which you have been paying your advances. You will receive a written or electronic confirmation once it is processed.

A few practical notes:

If you would rather not file a separate request right now, the overpaid amount will simply be factored in when you submit your annual social security report (přehled) for 2026 - you will either have a lower underpayment or a straightforward refund at that point.

Also worth knowing: the 715 CZK is the maximum refund per month. If your individual advance was somewhere between 5,005 CZK and 5,720 CZK (i.e. you were already paying less than the old minimum but more than the new one), you can still request the difference back, just a smaller amount.

4. What If You Are on the Flat-Rate Tax (Paušální Daň)?

If you opted into the flat-rate tax scheme (paušální daň), the change affects you too - but the mechanics are slightly different.

In the first band of the flat-rate scheme, your monthly payment was 9,984 CZK. Under the new law, it drops to 9,162 CZK from August 2026 onwards.

For July specifically, you get to offset the accumulated overpayment from January to June (which amounts to 4,932 CZK) against your July instalment. Instead of paying 9,984 CZK or even 9,162 CZK in July, you will only need to pay 4,230 CZK. From August, the new standard rate of 9,162 CZK kicks in.

If you miss the July offset and pay the full amount, the overpayment will sit as a credit and can be refunded after your 2026 paušální daň is assessed at the end of the year.

The second and third bands (16,745 CZK and 27,139 CZK respectively) are not affected by this change.

5. Does This Apply to Everyone?

Not quite, and this is important. The 715 CZK monthly reduction specifically applies to freelancers running a primary trade license activity (OSVČ hlavní) who are paying at or near the minimum rate.

If you are running your trade license as a secondary activity (OSVČ vedlejší) - for example, you are also employed and your freelancing is on the side - your social insurance minimums are calculated differently. The change still technically applies to you, but the numbers will be different.

If you were paying well above the minimum because your income is higher, your monthly payments do not suddenly change to 5,005 CZK. Your advance payments were set based on your actual previous-year income, and those remain unchanged for now. You will however benefit from the retroactive part if your advance was anywhere between 5,005 and 5,720 CZK.

Not sure which category you fall into? Get in touch and we can help you figure it out.

6. Why This Matters for Your Residence Permit

We write about this every chance we get (sorry, not sorry): your monthly contributions directly affect your residence permit calculations.

When the Ministry of the Interior reviews your freelance income to approve or extend your business residence permit, they subtract your paid taxes, social insurance, and health insurance from your total income. Lower social insurance payments mean your calculated net income is slightly higher - which works in your favour.

If you have a residence permit application coming up and you want to make sure your numbers look as good as possible, read our Czech Taxes 2026 guide for freelancers and feel free to reach out.

7. Your Action List

To keep this simple, here is what you should actually do:

If you are paying minimum social insurance advances (OSVČ hlavní):

Update your standing order from July 1 to 5,005 CZK per month (if your bank has one set up for the exact minimum amount).

Submit a refund request to your local OSSZ to get the 4,290 CZK overpaid from January to June back. You have time - but the sooner you do it, the sooner the money lands in your account.

If you are in the flat-rate tax scheme (first band):

Make sure your July payment is 4,230 CZK (not the old 9,984 CZK), then from August pay 9,162 CZK.

If you are unsure whether and how this applies to you:

Talk to your accountant or contact us - this is exactly the kind of thing we help our clients navigate.

FAQs

How do I submit the refund request to OSSZ?

You can submit it in person at your local OSSZ branch, or in writing (postal or electronic). The request should include your name, personal ID number (rodné číslo), and bank account details. The OSSZ has 60 days to process and return the money.

What if I do nothing and just wait?

If you do not submit a refund request, the overpaid amount will be counted towards your annual social insurance report (přehled OSVČ) filed after tax season. You will either face a lower underpayment or receive a refund through the standard annual reconciliation process.

Does this affect health insurance advances?

No. Health insurance minimums remain at 3,306 CZK and are not changed by this new law.

I am new to freelancing in the Czech Republic - where do I start?

Start with our Trade License guide and our Freelancer Taxes 2026 guide. And of course, you can always reach out to us directly.

Recommended further reads

Czech Taxes 2026 (For Freelancers): What You Need to Know (and Why It Matters for Your Residence Permit

Attention Freelancers: Big Changes for Czech Self-Employed (Živnost) From Jan 1, 2026

Employment vs. Freelancing in the Czech Republic: Which One is Right for You in 2026?

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