Secondary Self-Employment (OSVČ): Limits, Benefits, and Obligations

Running a business doesn't have to be your only occupation. Thousands of people in the Czech Republic combine employment, studies, or parental leave with running a trade licence. If you're one of them, you enjoy significant advantages as a secondary OSVČ — most notably lower minimum contributions to social and health insurance. In this article, we'll take a detailed look at who qualifies for secondary self-employment status, what limits apply in 2026, how contributions differ from primary self-employment, and what to watch out for when filing your tax return and annual overviews.

Who can have secondary OSVČ status

For your business to be classified as a secondary activity, you must meet at least one of the following legally defined grounds:

1. Employment

The most common ground. If you are employed and your employer pays social and health insurance contributions on your behalf from at least the minimum assessment base, your business is automatically treated as a secondary activity. This applies to standard employment contracts as well as agreements to perform work (dohoda o pracovní činnosti, DPČ), provided that insurance contributions are being paid from them.

Watch out for DPP: An agreement to complete a job (dohoda o provedení práce, DPP) is recognised as employment for secondary self-employment purposes only in months where social security contributions are actually being paid from it. New rules for DPP contributions have been in effect since 2025 — contributions are paid if the total income from all DPP agreements with a single employer exceeds 10,500 CZK per month (or 17,500 CZK in aggregate across all employers).

2. Receiving an old-age or disability pension

Old-age pensioners and individuals receiving a disability pension of any degree automatically qualify for secondary self-employment status. This applies to both a standard old-age pension and an early old-age pension.

3. Parental leave or childcare

If you are caring for a child under the age of 4 (or under 10 in the case of a child with a disability), or if you are receiving parental allowance, your business is treated as a secondary activity. This is great news for parents who want to earn some extra income during parental leave.

4. Studies

Students under the age of 26 who are continuously preparing for a future profession by studying at a secondary or higher education institution qualify for secondary self-employment status. The age limit of 26 is the maximum — once reached, the activity switches to primary.

5. Caring for a dependent person

If you are caring for a person dependent on the assistance of another individual at dependency level II, III, or IV (moderate, severe, or complete dependence), you meet the conditions for secondary self-employment.

6. Persons with severe disabilities

Holders of a ZTP/P card (severe disability with a companion) automatically qualify for secondary self-employment status.

The threshold amount for 2026: 117,521 CZK

The key concept for secondary OSVČ is the threshold amount. This is the limit on your tax base (gross profit) — once exceeded, you become a mandatory participant in pension insurance and must pay advance payments towards social insurance.

What happens when you exceed the threshold amount

If your tax base for 2026 exceeds 117,521 CZK:

1. You will retrospectively become a mandatory participant in pension insurance for the entire year 2026
2. You will need to pay the remaining balance of social security contributions for the full year (calculated from your actual tax base)
3. From the month following the filing of your Overview, you must pay monthly advance payments towards social insurance (at least 1,574 CZK per month)

If, on the other hand, you do not exceed the threshold amount:

• You don't need to pay any social insurance contributions
• The period does not count towards pension insurance (unless you voluntarily pay contributions)
• For the following year, you don't need to pay advance payments towards social insurance

Insurance advance payments: primary vs. secondary self-employment in 2026

One of the biggest advantages of secondary self-employment is significantly lower minimum advance payments. Here's how the two compare:

Social insurance for secondary self-employment

The rules for social insurance as a secondary OSVČ are straightforward:

• Profit below the threshold amount (117,521 CZK): You pay nothing. No advance payments, no additional charges.
• Profit above the threshold amount: You pay advance payments of at least 1,574 CZK per month (for 2026). The actual amount of the advance payment is based on your tax base from the previous year.

The minimum advance payment of 1,574 CZK per month for secondary self-employment is nearly three times lower than the minimum advance payment for primary self-employment (4,759 CZK).

Health insurance for secondary self-employment

The situation with health insurance is even more favourable:

• No minimum assessment base applies — contributions are calculated based on your actual income
• You don't need to pay monthly advance payments — contributions can be paid as a lump sum after filing your annual Overview
• If you have advance payments from the previous year, you pay them at their actual amount (not the minimum)

In practice, this means that if your business generates a modest profit, you'll pay only a fraction of what you'd pay under primary self-employment.

How to switch from primary to secondary self-employment (and back)

Switching to secondary self-employment

If you've been operating as a primary OSVČ and you start employment (or begin studying, go on parental leave, etc.), you can switch to secondary self-employment status:

Switching from secondary to primary self-employment

If you lose your grounds for secondary self-employment (you leave your job, finish your studies, etc.), your activity automatically reverts to primary. From that point, you must pay the minimum advance payments applicable to primary OSVČ.

Tax return for secondary self-employment

Filing a tax return under secondary self-employment is no different from primary self-employment. The following still applies:

• Obligation to file a return exists if your income from self-employment exceeded 50,000 CZK per year, or if you are reporting a tax loss
• Flat-rate expenses can be claimed in the same way as for primary self-employment (60% for trade licences, 80% for craft trades, etc.)
• Tax credits are claimed in the standard way — the basic personal tax credit of 30,840 CZK, the spousal tax credit, and the child tax benefit

Specifics when combining employment and self-employment

If you combine employment with self-employment, you must include both types of income in your tax return:

• Section 6 of the Income Tax Act — income from employment — request a certificate of income from your employer
• Section 7 of the Income Tax Act — income from self-employment

Overviews for ČSSZ and your health insurance company

After filing your tax return, you must also submit the following overviews:

• Overview for ČSSZ — filed electronically via the ČSSZ ePortal. In the overview, you specify the months during which you carried out a secondary activity and the reason for it.
• Overview for your health insurance company — submitted to your health insurer. For secondary self-employment, contributions are calculated based on your actual profit, with no minimum assessment base.

Pension insurance and secondary self-employment

One of the downsides of secondary self-employment is its impact on your future pension. If your profit doesn't exceed the threshold amount and you don't pay social insurance contributions:

• That year doesn't count towards your pension insurance record
• This may affect both the amount of your future pension and your eligibility for a pension (you need a minimum of 35 years of insurance coverage)

Solution: voluntary pension insurance

If you want the year to count, you can:

1. Pay voluntary pension insurance — the minimum amount in 2026 is 1,574 CZK per month
2. Deliberately exceed the threshold amount — for example, by not claiming all your expenses (claiming actual lower expenses instead of the 60% flat rate)

Sickness insurance for secondary self-employment

Sickness insurance is always optional for the self-employed — whether operating under primary or secondary status. If you choose to enrol:

• The minimum advance payment for sickness insurance in 2026 is 216 CZK per month
• You are entitled to sickness benefit (from the 15th day of illness), maternity benefit, and paternity benefit
• Sickness insurance must be paid for at least 3 months before the entitlement to a benefit arises

Flat-rate tax and secondary self-employment

An important note: the flat-rate tax regime cannot be combined with secondary self-employment based on employment. If you are employed and also run a business, you cannot enter the flat-rate regime. The flat-rate tax is intended exclusively for OSVČ whose self-employment is their primary (or sole) activity.

An exception applies to OSVČ with secondary self-employment for other reasons (pension, parental leave), who may enter the flat-rate regime under certain conditions — but only if they have no employment income.

Secondary self-employment and VAT

Secondary self-employment status has no bearing on the obligation to register for VAT. If your turnover over 12 consecutive months exceeds 2,000,000 CZK, you must register for VAT regardless of whether your activity is classified as primary or secondary.

Most common mistakes with secondary self-employment

Practical examples

Example 1: Employee with a side business

Martin works as a programmer in full-time employment (gross salary of 55,000 CZK/month) and also operates as an OSVČ with annual income of 200,000 CZK. He claims flat-rate expenses of 60%.

• Tax base from self-employment: 200,000 × 0.4 = 80,000 CZK
• Threshold amount: 117,521 CZK
• 80,000 < 117,521 → threshold not exceeded
• Social insurance from self-employment: 0 CZK
• Health insurance: 80,000 × 0.5 × 0.135 = 5,400 CZK/year

Example 2: Student with secondary self-employment

Tereza is studying at university (age 24) and sells handmade jewellery. Annual income of 150,000 CZK, actual expenses of 60,000 CZK.

• Tax base: 150,000 − 60,000 = 90,000 CZK
• 90,000 < 117,521 → threshold not exceeded
• Social insurance: 0 CZK
• Health insurance: 90,000 × 0.5 × 0.135 = 6,075 CZK/year

Example 3: Running a business on parental leave with the threshold exceeded

Klára is on parental leave and works as a freelance translator. Annual income of 450,000 CZK, flat-rate expenses of 60%.

• Tax base: 450,000 × 0.4 = 180,000 CZK
• 180,000 > 117,521 → threshold exceeded
• Social insurance: 180,000 × 0.5 × 0.292 = 26,280 CZK/year (minimum 1,574 × 12 = 18,888 CZK)
• Health insurance: 180,000 × 0.5 × 0.135 = 12,150 CZK/year

Frequently asked questions

Can I have secondary self-employment status if I'm on a DPČ agreement?

Yes, a dohoda o pracovní činnosti (DPČ) is recognised as grounds for secondary self-employment, provided your employer pays social security contributions from it. This applies when your remuneration under the DPČ reaches at least 4,000 CZK per month (the threshold for 2026).

What if I lose my grounds for secondary self-employment during the year?

If, for example, you leave your job in June, your activity switches to primary from July onwards. In your annual Overview, you indicate from which month you have primary activity, and contributions are calculated proportionally.

Do I need to file a tax return if my profit is below 50,000 CZK?

If your annual income from self-employment didn't exceed 50,000 CZK and you have no other taxable income (aside from employment, where your employer carries out the year-end tax settlement), you don't need to file a return. However, bear in mind — you must always file the Overview with ČSSZ and your health insurance company.

Can secondary self-employment be combined with the flat-rate tax regime?

Only if the grounds for secondary self-employment are not employment. OSVČ whose secondary self-employment is based on receiving a pension, parental leave, or caring for a dependent person may enter the flat-rate regime under certain conditions.

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Secondary self-employment is a great way to earn extra income through business with minimal insurance costs. The key is to correctly notify your grounds for secondary status, keep an eye on the threshold amount, and not forget to file the required overviews. If you're unsure whether you meet the conditions, contact your local district social security office or take advantage of modern business management tools.