Agreements to Complete a Job (DPP) and Changes from 1 July 2024
From 1 July 2024, employers are required to report the commencement of employment for all employees working under an Agreement to Complete a Job (DPP).
This means that the requirement now also applies to employees who are not participants in sickness insurance based on their DPP activity.
As of this date, employers are also required to report, on a monthly basis, the amount of income settled for each calendar month from all DPP agreements.
The income threshold for DPP agreements remains at CZK 10,000 for the time being.
The conditions for participation in sickness insurance remain unchanged until 31 December 2024.
The new threshold from 1 January 2025 is CZK 11,500.
VPDPP Report
A new report will need to be submitted — the Statement of Income Settled by the Employer for Employees Working under an Agreement to Complete a Job, abbreviated as VPDPP.
The report will be available in the Flexi application at the end of July 2024.
The first submission of the report is possible for the period 7/2024, from 1 August 2024 — i.e. the first day of the following month — but no later than 20 August 2024.
The new form will include the following: first name, surname, birth registration number, date of commencement of employment (and, where applicable, date of termination), health insurance provider, and the amount of income.
A detailed description of the report and instructions for completing it will be provided prior to the release of the new version of Flexi.
If an employee commences a DPP on 1 July 2024, the commencement can be reported using the new VPDPP form — i.e. for the period 7/2024 by 20 August 2024.
The output will include: first name, surname, birth registration number, date of commencement of employment, health insurance provider, and the amount of income.
Every employee who performed work under a DPP in July 2024 must be registered no later than 20 August 2024 as an employee and included in the Czech Social Security Administration (ČSSZ) records.
For employees working under a DPP, employers will no longer be required to submit the form "Notification of Commencement of Employment (Termination of Employment)"; however, it will still be possible to use this existing form to report commencement or termination of employment, as has been the case until now.