DPP (work performance agreement) calculator 2026
Calculate your net pay from a DPP (Czech agreement to complete a job) for 2026. Up to a monthly payment of CZK 12,000, no social or health insurance is deducted; from that threshold (inclusive) upward, contributions apply to the entire amount. The calculator also accounts for whether you have a signed taxpayer declaration and the personal tax credit.
How net DPP pay is calculated
A DPP (agreement to complete a job) is taxed and insured differently from a regular salary. The key figure is the CZK 12,000 monthly decisive threshold per employer (2026, summed across all DPP agreements with the same employer in a given month):
- Payment up to CZK 11,999 — neither social insurance (7.1%) nor health insurance (4.5%) is deducted.
- Payment of CZK 12,000 or more — 11.6% total insurance is deducted from the ENTIRE payment, not just the amount above the threshold.
Tax treatment depends on whether you have a signed Taxpayer Declaration with the employer (possible with only one employer at a time):
- No declaration — a 15% final withholding tax applies to the whole payment; this settles the tax liability, and the personal tax credit cannot be applied.
- With declaration — 15% advance tax applies, reduced by the monthly personal tax credit of CZK 2,570 (if the credit exceeds the tax, the tax is zero).
Net pay = gross pay − insurance (11.6% above CZK 12,000) − tax (15% withholding, or 15% advance − CZK 2,570 credit)
Sample calculation step by step
Example: gross payment CZK 20,000, signed taxpayer declaration (credit applied).
| Step | Item | Calculation | Amount |
|---|---|---|---|
| 1 | Gross payment | — | CZK 20,000 |
| 2 | Insurance (7.1% social + 4.5% health, payment ≥ CZK 12,000) | 20,000 × 11.6% | CZK 2,320 |
| 3 | Advance tax before credit | 20,000 × 15% | CZK 3,000 |
| 4 | Personal tax credit | −CZK 2,570 | CZK 2,570 |
| 5 | Tax after credit | 3,000 − 2,570 | CZK 430 |
| 6 | Net payment | 20,000 − 2,320 − 430 | CZK 17,250 |
What affects the result
- Payment relative to the CZK 12,000 threshold — even one crown above it means insurance applies to the whole amount, not just the difference (a cliff-edge threshold).
- Signed taxpayer declaration — enables the CZK 2,570 monthly personal tax credit and lower advance tax instead of final withholding tax.
- Multiple DPP agreements with one employer — the CZK 12,000 threshold is assessed on the combined total of all agreements with the same employer in a month.
- Other tax credits and deductions — e.g. for children, disability, or studies are settled only in the annual tax reconciliation or tax return and are not included here.
When this calculation is useful and what to watch for
This calculator gives a quick estimate of net pay for a single DPP with one employer. It does not account for multiple concurrent agreements with different employers, annual tax reconciliation, other tax credits and deductions, or the specifics of sickness insurance (benefit entitlement arises only once the threshold is reached and other conditions are met). Your employer's payroll department confirms the final amount.
⚠️ Indicative calculation, rates current for 2026. Not a substitute for an accountant or tax advisor — verify important decisions with the Czech Financial Administration.
FAQ
When is social and health insurance deducted from a DPP payment?
A unified decisive threshold of CZK 12,000 per month applies across all DPP agreements with one employer. If the payment reaches CZK 12,000 or more, insurance (7.1% social + 4.5% health) is deducted from the ENTIRE payment, not just the amount above the threshold.
What if I have DPP agreements with several employers?
The CZK 12,000 threshold is assessed separately for EACH employer (summing all DPP agreements with that same employer in a month). Employers are required to report agreement data, so totals can be tracked.
What is the difference between withholding and advance tax on a DPP?
Without a signed Taxpayer Declaration, the payment is taxed with a 15% final withholding tax, which settles the tax liability (the personal tax credit cannot be applied). With a declaration signed with one employer, 15% advance tax applies, reduced by the CZK 2,570 monthly personal tax credit.
Can I apply the personal tax credit on a DPP?
Yes, but only if you have a signed Taxpayer Declaration with that employer (possible with only one employer at a time) and advance tax applies. If the credit exceeds the calculated tax, the tax is zero; no refund of the excess is paid out.
Do I need to file a tax return because of DPP income?
If the payment was taxed with final withholding tax, your tax liability is generally settled and no return is required, though you may request annual reconciliation or file voluntarily. With advance tax, the income is settled via annual reconciliation or a tax return.
How many hours can I work under a DPP?
The Labour Code limits DPP work to 300 hours per year per employer; hours worked for affiliated employers within a group count toward this limit.
Is DPP income covered by sickness insurance?
Yes — once the payment reaches the CZK 12,000 threshold, sickness insurance participation arises, giving entitlement to sickness benefits, care allowance, etc., subject to other conditions.
Does the calculation differ from a DPČ (agreement on work activity)?
Yes, for a DPČ the insurance threshold is lower (CZK 4,500), but the tax logic is otherwise similar. Use the separate DPČ calculator for that type of agreement.
Sources & legislation
📅 Last updated: 28 July 2026