Life situation
Self-employment during parental leave
You can run a trade licence — or even build it up to full capacity — while receiving the parental allowance: unlike maternity pay (PPM), it does not limit your earnings in any way. We explain when it counts as a secondary activity, how much (if anything) you pay in insurance contributions, and the key difference between parental leave and maternity leave.
Parental allowance and self-employment are not mutually exclusive
Unlike a number of other benefits, the parental allowance does not limit your earnings in any way — you can run your business at full capacity and keep receiving the allowance. The only condition is that proper care of the child is ensured throughout — you meet this condition even if another adult looks after the child while you are working. It is paid by the Labour Office (Úřad práce ČR) on the basis of an application that you submit separately from the trade notification.
For OSVČ social insurance purposes, the key point is that entitlement to the parental allowance automatically makes your trade a secondary activity — just like employment, study or a pension. You pay no social (pension) insurance on your business at all until your annual profit exceeds the decisive amount of 117 521 Kč (2026). Above this threshold you become liable for insurance retroactively from the start of the year and settle the premiums according to the income and expenses statement (přehled). For details, see the article main vs. secondary activity.
You notify the start of your business on the Single Registration Form (JRF), or subsequently at the OSSZ (district social security office) and your health insurance company — always together with proof that you have been awarded the parental allowance. As a person on parental leave, the state pays your health insurance for you, but income from a secondary trade is settled with the health insurance company according to your actual profit, because a secondary activity has no minimum for health insurance. Further steps are summarised in the article what to sort out after setting up a trade licence.
If, while caring for your child, you just want to earn a little extra from time to time and it is not a continuous activity, you do not need to set up a trade licence — occasional income up to 50 000 Kč a year is exempt from tax under §10 of the Income Tax Act and is not subject to social or health insurance. Once your earnings exceed this threshold, or the side income becomes a continuous activity, you do need to set up a trade licence — see side income and IČO.
Calculate your advance payments if your profit exceeds the limit
If you are not sure whether this year's profit from your trade will exceed the decisive amount of 117 521 Kč, select the option „Vedlejší (zaměstnání, studium, důchod, rodičovská)“ (Secondary — employment, study, pension, parental leave) in the calculator and enter your expected annual profit. This gives you an estimate of your monthly advance payments on social and health insurance under the 2026 rates.
Indicative calculation based on 2026 rates. Does not replace a tax advisor's calculation. Verified 2026.
Maternity pay (PPM) is not the same as parental leave
Maternity pay (PPM — peněžitá pomoc v mateřství, commonly called „mateřská“) is paid by the OSSZ/ČSSZ (the Czech Social Security Administration and its district offices) as a sickness insurance benefit. As an OSVČ you are entitled to it only if you participate in voluntary OSVČ sickness insurance — for at least 270 calendar days in the last two years before the day you start drawing PPM, of which at least 180 days as an OSVČ in the last year. The key difference from parental leave: while drawing PPM you must not personally carry out the activity that PPM relates to — however, you do not have to close the trade licence; it can be run temporarily by another person (e.g. an employee or a collaborating spouse). Once PPM ends and you move on to the parental allowance, this restriction disappears and you can run your business without any limit. Details on voluntary OSVČ sickness insurance can be found at cssz.cz.