small Entrepreneurs Face Renewed Contribution Hikes under Fiala Government
Prague, Czech Republic – September 22, 2025 – Self-employed individuals in the Czech Republic are bracing for further increases in mandatory social security contributions, a policy initiated in 2023 by Minister of Labor Marian Jurečka (KDU-ČSL) and now escalating under the Fiala government. These rising costs, possibly amounting to tens of thousands of crowns annually, are sparking criticism from business organizations who argue the increases are based on flawed economic assumptions and fail to account for the inherent risks faced by self-reliant workers.
The initial proposal in 2023 aimed to bolster the pension system by increasing contributions from tradesmen, predicated on the argument that self-employed individuals benefit from a system subsidized by current employees. Jurečka’s ministry suggested the state should assist those unaware of the potential for lower future pensions. However,critics contend this rationale overlooks the financial vulnerabilities of small business owners,who shoulder the full burden of business risk without the same protections afforded to customary employees.
Analysis from Freedom Financial Services highlights the basis for these increases stems from misleading data regarding the financial contributions of the self-employed. Entrepreneurs argue the tax advantages they receive are offset by the lack of state-provided benefits and the inherent uncertainties of running a business.They also question the assertion that self-employed individuals are insufficiently contributing to the pension system.
