How to set your hourly rate as a self-employed tradesperson (OSVČ)

Your hourly rate is the number customers choose you by – and also what pays your contributions, your tools and your holidays. Too low a rate wears you out, too high scares customers off. Here is how to calculate it instead of guessing.

1. How much you want to take home

Start from the end: how much money you need each month to live on after paying everything related to your business. That is the amount the rate has to cover first.

2. Contributions and tax

As a self-employed person (OSVČ) you pay advances on social and health insurance and income tax. The minimum advances change every year, so check the current amounts on the ČSSZ website and with your health insurance company. If your income is lower and your trade is simple, also look at the flat-rate regime (paušální režim), where you pay everything as one monthly amount.

3. Costs

List what your business costs you each month. Typically:

• tools and replacing them, work clothes;
• car, fuel, parking;
• phone, internet, an accountant or accounting software;
• liability insurance;
• small materials you do not charge the customer for separately;
• advertising and portal fees.

4. How many hours you actually bill

This is where people get it wrong most often. A month does not have 160 billable hours: travelling to customers, site visits and quotes, buying materials, bookkeeping, illness and holidays take up a large part of your time. Work out honestly how many hours a month you really bill to customers – for a tradesperson just starting out it is usually far fewer than the hours worked.

5. The calculation

rate = (net income + contributions and tax + costs) ÷ billed hours

An example with made-up numbers, only to show the method – your contributions, costs and hours will be different.

You want 40,000 CZK net, contributions and tax come to 12,000 CZK, costs to 10,000 CZK, and you bill 100 hours a month: (40,000 + 12,000 + 10,000) ÷ 100 = 620 CZK per hour. That is the minimum you should not go below.

6. Compare with the market

Look at what others in your trade and town charge. If your rate came out well above the market, look for savings in costs or more billable hours; if well below, do not be afraid to raise it. With a tradesperson, customers often care more about reliability and reviews than about price.

7. What to state up front

• Travel – is it included in the rate or charged separately?
• Minimum billed time – for example one hour even for a small repair.
• Materials – do you buy them, or does the customer?
• Surcharges – weekends, public holidays, urgent call-outs.

On Rychlé Práce you state your hourly rate right in your listing, and customers can filter by it. You agree further details in messages.