When a sole trader starts paying social insurance contributions

The question of when a sole trader starts paying social insurance contributions is one of the most common ones we deal with at Bilvao when clients are starting out in business. The answer is not “immediately after setting up the trade licence” – the obligation arises only once conditions linked to the income earned and to the filing of the tax return are met. That is exactly why many new entrepreneurs panic unnecessarily, even though for the first months they pay nothing to the Social Insurance Agency (Sociálna poisťovňa).

The first year without social insurance contributions

As a rule, a new sole trader does not have to pay social insurance from day one. The Social Insurance Agency assesses whether compulsory insurance arises once a year, on the basis of the income reported in the tax return for the previous year. That is why most new self-employed persons (SZČO) pay nothing to the Social Insurance Agency in the initial period. Health insurance contributions, however, are a separate matter and are paid from the very start of the business, at least on the minimum.

• the obligation is assessed as of a fixed date in the year
• what counts is the income in the tax return, not the profit “in your account”
• the Social Insurance Agency notifies you of the obligation and the amount by letter or to your electronic mailbox

When the obligation arises

The decisive factor is the income threshold for the calendar year. If your business income exceeds this threshold, compulsory social insurance arises from a set date in the following year (traditionally from 1 July, or from 1 October if the tax return deadline is deferred). The Social Insurance Agency informs you in writing that the insurance has arisen and of the amount of the contribution, so you do not have to calculate the amount yourself. If you do not exceed the threshold, no insurance arises, and the next assessment takes place a year later.

How the amount of the contribution is determined

The amount is based on the assessment base, which is calculated from the partial tax base adjusted for the insurance contributions paid and divided by a statutory coefficient. There is both a minimum and a maximum assessment base, so the contribution never falls below the statutory minimum or exceeds the cap. Check the specific current amounts for the period concerned, because they change every year in line with the average wage.

What to watch out for

Once the obligation has arisen, it continues even during periods when your sales are lower – it ends or changes only at the next annual assessment. Contributions are due by the 8th day of the following month, and late payment means a penalty. If you file your tax return under an extended deadline, the date on which the insurance arises is also postponed.

• payment by the 8th day of the following month
• deregister when you suspend or close your trade licence
• expect a change in the amount of the contribution every year

A practical example of the process

Imagine you set up your trade licence during the year and report income for this first year in your tax return. If it exceeds the statutory threshold, the Social Insurance Agency will notify you, as of the decisive date of the following year, that compulsory insurance has arisen and of the monthly amount. This cycle repeats every year, so the amount of the contribution can change from year to year depending on how well your business is doing.

Why handle it with an accountant

When a sole trader starts paying social insurance contributions, and how much, is directly linked to how the tax return is prepared and what flat-rate or actual expenses you claim. Higher expenses reduce the tax base, and with it the future assessment base, but at the same time they mean lower future benefits. At Bilvao, as part of processing payroll and contributions, we keep track of the deadlines for you so that no obligation towards the Social Insurance Agency catches you out financially.

Current figures (2026)

Minimum contributions of a self-employed person in 2026

Figures valid for 2026; check the current wording.

Related articles: Minimum and maximum contributions of a self-employed person (SZČO) in 2026, Contributions of a self-employed person: how they are calculated and when the obligation arises, Voluntary social insurance: when it pays off.

Frequently asked questions

Does a sole trader pay social insurance contributions as soon as the trade licence is set up?

As a rule, no. The Social Insurance Agency assesses whether compulsory insurance arises once a year, according to the income in the tax return, so in the first period a new sole trader usually pays nothing to the Social Insurance Agency. Health insurance contributions, however, are separate and are paid from the start.

How will I find out how much I have to pay?

The Social Insurance Agency informs you in writing, by letter or to your electronic mailbox, that compulsory insurance has arisen and of the amount of the monthly contribution. So you do not have to calculate the amount yourself, but we recommend checking it with an accountant for the period concerned.