The social security scheme in the Czech Republic is governed by Act No. 589/1992 Sb., on Contributions to Social Security and State Employment Policy, which lays down social security contributions.
Act No. 187/2006 Sb., on Sickness Insurance regulates the sickness insurance scheme, while Act No. 155/1995 Sb., on State Pension Scheme regulates the state pension scheme.
Contributions to the social security scheme in the Czech Republic consist of the following components:
- State Pension Scheme contributions – in the event of old age, disability or death of the breadwinner, the payer is granted and paid out the respective pension on the condition that he/she meets the statutory requirements (see State Pension Scheme in the Czech Republic)
- Contribution to the state employment policy – if the payer becomes unemployed, he/ she is granted and paid unemployment benefits if he/she meets the statutory requirements. The contributions of employees are paid by their employers, while self-employed persons pay the contributions themselves. Persons who take part in the pension scheme voluntarily do not pay this contribution;
- Sickness insurance contributions (premiums)– there are four types of benefits provided from the sickness insurance scheme of employees: sickness benefits, nursing benefits, compensatory benefit in pregnancy and maternity, and maternity benefits. Self-employed persons may receive only sickness and maternity benefits. Employees must take part in sickness insurance scheme mandatorily and the contributions are paid on behalf of them by their employers. For self-employed persons it remains voluntary.