Insurance for foreigners in the Czech Republic
This article deals with social and health insurance of foreigners working in the Czech Republic. We look in this article at when a foreigner has to pay social and health insurance himself, and in what cases his employer pays for it. Furthermore, we describe who has the right to participate in the public health insurance system and who, in turn, has to obtain for a commercial one.
For employees, health and social insurance is paid by their employer. They are a part of the public health and social insurance system.
Similarly, situation occurs in case of the director – the insurance is paid by the company, as the director is also a part of public health and social insurance system. Their income in terms of costs / taxes is in the same category as when it comes to the employee and his/her income.
But these matters are more complicated for business owners. The self-employed person is obliged to pay advances for social and health insurance. Social insurance is calculated from the minimum assessment base, which in 2019 is 98 100 Czech crowns. On this basis, the minimum advance is 29.2 percent of the minimum assessment base. In 2019 it is 28 646 crowns per year, i.e. CZK 2,388 per month. During the first year of business, only minimum advances are paid. In the following years of business, advances are calculated on the basis of so-called overview on income and expenditures, which each self-employed person is obliged to provide his health insurance company and to the DSSA (District Social Security Administration).
As far as health insurance is concerned, foreigners who earn income as self-employed persons cannot enter the public health system. Therefore, they have sign up with one of the domestic commercial insurance companies pursuant to Act No. 277/2009 Coll., On Insurance. If the self-employed foreigner does not pay health and social insurance, this may have an impact on prolonging his long-term stay in the Czech Republic.
Who has the right to participate in the public health insurance system?
In addition to Czech citizens, participants in public health insurance can also be:
- EU citizens;
- all foreigners employed by a company based in the Czech Republic;
- all foreigners with a permanent residence permit in the Czech Republic.
Also entitled to the public health insurance are:
- asylum seekers;
- foreigners receiving temporary protection;
- children born to a foreigner holding a permanent residence permit.
On the contrary, the public health system cannot enter:
- foreigners registered as self-employed persons in the Czech Republic;
- foreigners staying in the Czech Republic illegally;
- foreigners who have terminated their employment or who receive sickness benefits or parental allowance.
What are the possibilities of health insurance in the Czech Republic?
There are a total of 4 options to be insured in the Czech Republic:
- Public health insurance at Czech health insurance companies (employees, persons with permanent residence in the Czech Republic, recognized refugees, etc.).
- Public health insurance from another health insurance company in the EU (persons residing in another EU country Temporary living in the Czech Republic, or Traveling through the Czech Republic).
- International health insurance contracts for third-country nationals.
- Commercial health insurance or travel insurance. (f.e. Slavia pojišťovna a.s., VZP ČR etc.)
Foreigners from countries outside the EU, traveling or temporarily staying in the Czech Republic should have commercial travel insurance. Foreigners living in the Czech Republic without permanent residence must have commercial health insurance. The lowest prices of commercial health insurance in the Czech Republic range from 8 000 CZK and up per year.
At our rutland & partners law firm we are able to arrange registration for state health and social insurance or for commercial insurance.
For more information please contact:
Monika Rutland, partner
rutland & partners, advokátní kancelář s.r.o.