The Most Advantageous Form of Work for Students in 2026

What form of (co)operation is most advantageous for a university or high school student?

I. Agreement on Performance of Work (DPP)

If a student's income does not exceed CZK 11,999 per month, it is most advantageous for them to work under an Agreement on Performance of Work (DPP). Up to this limit, no social security or health insurance is paid, and if the student signs the tax declaration, they pay no income tax either. From the perspective of costs and contributions, this is truly the best option.

ATTENTION! Under a DPP, however, a student can work a maximum of 300 hours in total for the entire calendar year.

II. Business/Self-employment (OSVČ)

If, however, the income is expected to be higher, it is worth considering performing work on a business license (under an Identification Number - IČO). In terms of contributions, self-employment is more advantageous than an employment relationship, but it is administratively more demanding.

It is necessary to register at the Trade Licensing Office and pay a fee of CZK 1,000 for the issuance of a trade license. After registration, a notification of the commencement of activities will be sent to the Tax Office, the Czech Social Security Administration (ČSSZ), and the health insurance company.

As a student, self-employment will be a secondary activity, so there is no obligation to pay insurance advances (or tax advances) during the year. After the end of the year, it is necessary to file an income tax return and reports to the ČSSZ and the health insurance company, where the final contributions are calculated. Note: this applies only to students up to 26 years of age.

Depending on the type of activity, the student will fall into a flat-rate expense category, most commonly 60%.

III. Agreement on Work Activity (DPČ) or Employment Contract

If the monthly income under an Agreement on Work Activity (DPČ) does not reach CZK 4,499, the contributions are the same as for a DPP (see Point I). If the monthly income exceeds this amount, the contributions are the same as for a regular employment contract – meaning health and social insurance, plus taxes.

As seen in this overview, the Agreement on Performance of Work (DPP) will always be the most advantageous option, provided that the limits on hours and earnings are not exceeded. In the long run, opening a business license is also worthwhile for students, as it offers more freedom and, as mentioned, the contributions turn out to be more favorable than in employment.

In case of any questions, please do not hesitate to contact us.

Your TaxVision Team