Act No. 323/2025 Coll., effective from 2026, is fundamentally changing the rules for all Czech employers. The main update is the transition from old paper and fragmented electronic paperwork to a Unified Monthly Employer Report (JMHZ — Jednotné měsíční hlášení zaměstnavatele). Let’s break down how this will affect your business and why making a mistake when hiring a foreigner could now cost your company millions.
What are the changes and what is JMHZ?
Until now, employers had to submit up to 25 different types of employee reports to various authorities at different deadlines. Now, all this data will be consolidated into a single electronic file.
The new system creates a unified database on the Czech Social Security Administration (ČSSZ) portal. Information will automatically be shared with the Ministry of Finance (MF), the Financial Administration (FS), the Labour Office (ÚP ČR), the Czech Statistical Office (ČSÚ), and the Ministry of Labour and Social Affairs (MPSV). The government is adopting the «once-only» data principle: you no longer need to send authorities information they already have.
The main goal of this reform is to make the labor market more transparent, minimize illegal employment (including disguised employment, commonly known as the švarcsystém), and reduce the shadow economy.
How the new JMHZ system will work
Employers will no longer need to manually duplicate data for different authorities. The monthly report will be automatically generated in your payroll or HR software and sent as a single package.
What software should you use? To submit the JMHZ, companies will need modern commercial payroll and HR software. Leading Czech software developers are actively updating their products to meet the new legal requirements. Systems that will support the new format include:
- Money S3, Vario, Byznys, and Vema (by Seyfor);
- Pohoda (by Stormware);
- OKbase (by OKsystem);
- FORM studio, STEREO, Avensio, Nugget, and others.
Your software must be able to collect an expanded set of employee data, generate a consolidated report, and automatically connect to the ČSSZ state portal for submission. Once the file is received, the government system will distribute the information to the relevant authorities. The payroll software will also track the unique identification numbers (OIČ) that the state will assign to each employee.
Important exception: Processes related to health insurance (zdravotní pojištění) are not yet integrated into the JMHZ, as health insurance companies are not state institutions. These reports will still be submitted the old way.
Who needs to be registered? JMHZ registration is mandatory for absolutely all employees—both Czech citizens and foreigners. The system must include data for all forms of employment, including those working under DPP (Agreement to Complete a Job) and DPČ (Agreement to Perform Work) contracts, regardless of how much they earn.
The main change for foreigners: It is crucial to note the strict difference in reporting deadlines. While Czech citizens can still be registered within 8 days of starting work, any foreign worker (including EU citizens) must be registered strictly before their first day of work. Previous grace periods have been canceled.
JMHZ Implementation Timeline:
- January – March 2026 (Transition Period): Employers are temporarily exempt from submitting several regular reports while databases are being prepped and configured.
- April 2026: The system goes live. Companies will begin generating their first real JMHZ reports (the report for April is due between May 1 and May 20).
- July 2026: The strict rule for pre-registering foreign employees (strictly before they actually enter the workplace) comes into full effect.
Main challenges and risks for employers
Despite the long-term goal of reducing bureaucracy, the JMHZ system poses serious risks for businesses in the initial stages:
- Massive fines. Since the Labour Office and other authorities will now see data in real-time, delaying a foreign worker’s registration by even a single day is treated as illegal employment. Companies face staggering fines of up to 3,000,000 CZK for this violation.
- Technical unreadiness. Submitting the report is impossible without updated software. If your HR software provider doesn’t release an update in time, your company physically won’t be able to file the report. The new format also requires collecting a significantly larger amount of employee data.
- Risk of uncovering the «švarcsystém». The government will start seeing all small contracts (DPP and DPČ) in a single database in real-time. The risk of audits will increase, as authorities will easily be able to track contract chains and identify tax evasion attempts.
What to do next: An action plan for businesses
To avoid multi-million crown fines and smoothly transition to the new system, business owners and managers need to act now:
- Revise internal hiring policies. Change your onboarding process. Establish a strict rule: the HR or accounting department must receive all of a foreigner’s documents and register them in the system exclusively before they show up for work.
- Audit your current staff. Check and update the data for all active employees on the Czech Social Security Administration portal (ePortál ČSSZ).
- Contact IT and your accountants. Ensure that your accounting software provider (or external outsourcing firm) is technically ready for the JMHZ transition and is aware of the expanded list of mandatory fields (including the unique OIČ number).
Need help transitioning to the new rules? If you still have questions or are facing difficulties preparing for the JMHZ system, reach out to DoMyTax. We have years of professional experience in the Czech accounting services market. Our specialists will provide clear consultations, help streamline your accounting processes, and take over the proper registration of your employees under the new standards. Grow your business with peace of mind—leave the paperwork and government communication to us!
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💬 Chat with us online: DoMyTax
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