Effective from 1 February 2023, an employer may, for a defined group of employees and upon meeting the statutory conditions, apply a discount on insurance premiums for a calendar month in the amount of 5% of the aggregate assessment bases of employees for whom the discount is claimed. For more information on these conditions, please visit the Ministry of Labour and Social Affairs website: Social Insurance (mpsv.cz)
In ABRA Flexi, this discount can be configured starting from version 2023.1.0.
Discount setup
The discount can be enabled in the menu under Employees - HR Management, on the detail page of a specific employee. The setting is located on the Employment - Contract - Company SP Discount tab:
Here you must enter the date from which the discount will be applied and the reason for the company social insurance discount.
The data entered here is used only in the Notice of Intent to Apply the Social Insurance Discount form. It is also important to note that this setting is available only for standard employment contracts. The discount should be enabled on only one standard employment contract at any given time. The total weekly working hours across all standard employment contracts should be within the range of 6–30 hours.
The system monitors compliance with the conditions for applying the discount — for example, if you attempt to set the discount for a contract with a 40-hour weekly schedule, the system will not allow it:
Discount calculation
In the payroll update, on the Social Insurance tab.
Item SLEVA SP FA 1P A/N - Percentage/constant = 1, the discount is "enabled"
Item SLEVA SP FIRMA KR-1P - the discount value
In the payroll update, the print output Summary of Company SP Discount for Reduced-Hours Contracts is available.
This provides a detailed overview of employees with the discount and whether they are eligible for it.
The payroll calculation automatically monitors compliance with the following conditions:
whether the sum of social insurance bases for standard employment contracts is less than 1.5 times the average wage (for 2026, this threshold is CZK 73,451)
whether the total hours worked under standard employment contracts is less than 138 hours (in the case of a mid-month start or end of employment, the number of hours is reduced proportionally)
whether the "hourly wage" (SP base / hours worked) is less than 1.15% of the average wage (in 2026, this threshold is CZK 564/hour)
The discount is applied only when all 3 conditions are met.
If needed, the discount for a given month can be manually enabled or disabled by setting the percentage in the SLEVA SP FA 1P A/N component (1 = enabled, 0 = disabled). After changing the value, the payroll must be recalculated.
If any value that affects the amount of social insurance — and therefore the SP discount — changes, it is necessary to recalculate the payroll for all employees in that month. This is required to ensure the correct calculation of the company SP discount and the proper distribution of any rounding differences in the company SP discount.
Notice of intent to apply the social insurance discount
The form for the District Social Security Administration (OSSZ) can be found in the menu under Employees - Print Outputs - Notice of Intent to Apply the Insurance Premium Discount for Employees. Only employees who have the discount configured in HR Management (see the first point above) will be displayed here.
You must also select whether this concerns an application, a termination, or a cancellation of a previously reported intent:
The output can be generated in the standard PDF format or as an XML file for electronic submission to the Czech Social Security Administration (ČSSZ).
Ending the validity of the social insurance discount
To end the validity of the SP discount, proceed as follows:
first, in the employment contract settings, enter the date until which the SP discount should be applied
then create a New setting valid from, where you enter the date from which the discount no longer applies and disable the discount!
In the Insurance Premium Statement for the given month, employees with the SP discount are displayed in section H.
