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Senate rejects reduction of social contributions for tradespeople, approves redistribution of billions from VZP

On Wednesday, the Senate rejected the proposal of the ANO, SPD and Motorists government coalition to reduce social contributions for tradespeople retroactively to last year's level. The main reason was concern over a shortfall in revenue to the pension system. Senators fear that a reduction in contributions could lead to lower pensions in the future. zpravy.aktualne.cz ↗

The proposal aimed to ease the financial burden of social insurance contributions on self-employed persons. The government coalition saw this step as support for tradespeople, but the upper house of parliament sided with the opposition, which warns of negative consequences for the long-term stability of the pension system. ihned.cz ↗

At the same session, however, the Senate approved the redistribution of approximately eight billion crowns from the General Health Insurance Company (VZP) among smaller employee and sector-specific health insurance companies. This step aims to stabilize the health insurance system. The redistributed funds come from VZP's higher profits in recent years, which were related, among other things, to state payments for healthcare for Ukrainian refugees. ct24.ceskatelevize.cz ↗

Both laws will be returned to the Chamber of Deputies, where the coalition may attempt to push them through in an amended form. seznamzpravy.cz ↗

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