New social contributions for the self-employed: income test, contribution holidays and micro-contribution

From 1 July 2026, sole traders and other self-employed persons’ Social Insurance Agency contributions are assessed under new rules. Consolidation Act No. 261/2025 Z. z. introduced the reform, with Act No. 122/2026 Z. z. adjusting the July transition at the last minute. The amended Social Insurance Act No. 461/2003 Z. z. rests on three elements: an income test, contribution holidays for new self-employed persons and a micro-contribution for low incomes. This changes calculations for businesses using contractors and anyone choosing between self-employment and an s.r.o.

Income test: no Social Insurance Agency payment below the threshold

Compulsory sickness and pension insurance is assessed annually on 1 July, or 1 October where the tax return deadline is extended. A self-employed person who was also in business in the previous year is insured only if their previous-year business income exceeds 10.5 times the subsistence minimum for one adult (§ 21(4) and (5)). For this year’s test, the threshold is EUR 2,876.90 of 2025 income.

Below the threshold, insurance ended on 30 June 2026 (30 September with an extended deadline) or never arose, and no Social Insurance Agency contributions are payable until the next test. This also covers self-employed persons not required to file a return because of low income. The threshold will change annually with the subsistence minimum. Health insurance is governed by a separate act and this test does not apply to it.

Contribution holidays: first payment after six months

Insurance starts later for new self-employed persons.

Unofficial English translation:

Compulsory sickness and pension insurance of a self-employed person arises from the first day of the sixth calendar month following the month from which that person is authorised to perform or operate the gainful activity referred to in § 3(1)(b), (2) and (3), unless this Act provides otherwise.

— § 21(1) of Act No. 461/2003 Z. z.

A sole trader authorised from February 2026 therefore first faces contributions from 1 August 2026. The holiday also applies on returning after a break longer than 60 months. After a shorter break, insurance resumes immediately, without a holiday, if the previous year’s income exceeded the income test threshold (§ 21(3) and (4)). For a new self-employed person, insurance arises after the holiday regardless of income; the test applies only from the following year. The other side is that before insurance arises, the activity provides no sickness or pension coverage and the period does not count for benefits or pension. Those wanting coverage may insure themselves voluntarily under the conditions set by the Act.

Micro-contribution: EUR 131.34 monthly for low incomes

After the holiday, a lower-income self-employed person does not pay from the usual minimum base. If income did not exceed 50% of the general assessment base, EUR 9,144 for 2026, contributions use a special base of 26% of one twelfth of that general base (§ 138(2) of Act No. 461/2003 Z. z.). In 2026, this is EUR 396.24, producing EUR 131.34 monthly contributions: the micro-contribution.

Above EUR 9,144, the base is calculated from the tax return using coefficient 1.486. The reform increased the minimum monthly base from 50% to 60% of one twelfth of the general base: EUR 914.40 in 2026, with minimum contributions of EUR 303.11 monthly. The micro-contribution has a cost visible later: sickness, maternity and future pension benefits use the lower base. From 1 January 2027, the special and minimum bases will be recalculated from the general assessment base for 2025 (§ 138(2)(b) and (8)).

The transition on 1 July 2026

People already self-employed before 2026 followed old rules until 30 June 2026 (§ 293gma). Insurance was originally intended to arise universally from 1 July, but Act No. 122/2026 Z. z. extended the income test to them (§ 293gnb), using 2025 income. The exception is those who did not do business at all in 2025; their insurance arose on 1 July 2026 without a test (§ 293gnb(1)(a)(2)). Those earning up to EUR 2,876.90 pay nothing; those above it but below EUR 9,144 pay the micro-contribution; above that, the usual calculation applies with the higher minimum. Those with extended tax-return deadlines face the same test on 1 October 2026.

Implications for businesses and legal form

• Contractor relationships. Lower-income contractors face materially lower costs from July, increasing pressure to use self-employment. But the boundary with dependent work is unchanged: long-term work under company instructions, on its premises and during its working hours still risks employment reclassification and labour inspectorate sanctions, regardless of contributions paid.
• Sole trader or s.r.o. Self-employment becomes more contribution-efficient at startup and low income, while the minimum rises at higher income. Compare actual figures, tax, liability and growth plans rather than last year’s rules.
• Lower contributions mean lower benefits. The micro-contribution also means lower maternity, sickness and pension benefits. Self-employed persons cannot choose a higher base, and alongside compulsory insurance they may voluntarily pay only pension insurance (§ 14(2), § 15(5)). When planning a family, it pays to calculate benefits in advance.

How to prepare

If you work extensively with sole traders, have the relationships checked. Our self-employed contractor service covers contracts and the dependent-work boundary. Choice of legal form assists with sole trader versus company decisions. Directors’ remuneration follows a different regime, addressed through a management agreement.