Government measures supporting employment or individual economic revenue, COVID-19, as of January 26
summary of economic measures supporting employment or individual economic revenue approved by czech authorities (valid)
Motivation bonus for covid-positive or quarantined persons.
The Government discussed on January 25, 2021 the proposal of the Ministry of Labor on motivation bonus for those who are tested covid-positive or stay in quarantine, in the amount of CZK 250 per day for the max. period of ten days, paid by the employers, to be deducted from social contributions. According to the Labor Minister Jana Malacova, particuarly low income earners will thus be motivated to undergo testing without fear of losing part of their income if tested positive. The Minister also stressed that the program can improve the tracking process.
COVID-Gastro-Closed Establishments Program.
The Government approved COVID Gastro-Closed Establishments (Covid-Gastro-Uzavřené provozovny) program, a compensation bonus for employers (in predefined groups, e.g. hospitality, retail, leisure facilities etc.) of CZK 400 per day per each employee (in main employment relationship, including part-timers and contracted self-employed) for the duration of closure due to the official government measures, to cover fixed cost, applicable for all days of closure from mid-October 2020 until January 10, 2021, can be tapped parallelly with other current Government compensation programs (Antivirus, Covid-Rent, Compensation bonus for the self-employed). The Ministry of Industry and Trade needs to request notification from the European Commission. The application submission deadline is March 1, 2021.
Confluence of compensation programs is possible.
The Parliament approved the proposal to combine the care-giver's allowance with compensation bonus of CZK 500 per day, with the Antivirus program, or Covid-Rent support.
Antivirus employment support program prolonged.
On December 21, the Government decided to extend Antivirus employment support program until February 28, 2021, in the amount of CZK 8 bn.
Modified Antivirus A and B regimes extended.
The Government extended and modified the employment support program Antivirus A and extended Antivirus B. The new conditions will apply retroactively starting October 1 and last until the end of 2020. (The European Commission approved the Antivirus wage compensation program to run until end of March 2021 and the Parliament has been discussing the so-called kurzarbeit (short work) program.)
Antivirus A applies to two types of employees. One, employers whose employees who stayed in ordered quarantine or isolation can receive a refund of 80% of wages up to CZK 50,000 (raised from CZK 39,000). Two, the government added a compensation of 100% of wage paid to those employees who stayed at home due to obstacles on the ability of the employer to operate caused directly by government restrictions. Application deadline is February 28, 2021. More.
Antivirus B will continue to compensate 60% of wages paid to an employee out of work due to obstacles on the operations of the employer due to indirect factors. This regime continues to be capped at CZK 39,000. Application deadline is February 28, 2021. More.
The Government approved extension of Antivirus regime A and Antivirus regime B.
Antivirus regime C lapsed.
employment protection program "Antivirus".
The Program which purpose is to compensate for all or part of wage costs, including social contributions, in the form of wage reimbursement for employees for period of work-related obstacles caused by the quarantine, emergency measures or their secondary impacts, all related to the spread of COVID-19, raises the cap on government compensation and reduces the previously proposed five categories to two (regimes A and B).
Regime A) Reduction of business operation and/or quarantine ordered: Closure or reduction of operation as a result of an emergency measures or quarantine ordered by the authority. Regimes A-B in the previous proposal.
Regime B) Related economic difficulties: For businesses experiencing an obstacle to work on the side of the employer due to related economic difficulties of the coronavirus outbreak. Regimes C-E in the previous proposal.
care-giver´s allowance for employees and self-employed persons.
On October 21, the Chamber of Deputies approved an increase in compensation for care-givers to 70% of the daily wage base of employees. The compensation also applies to individuals working outside an employment relationship (DPČ, DPP) and individuals who take care for persons dependent on the assistance of another person classified with degree two of dependence. The minimum compensation is CZK 400 per day. The measure applies to parents of children up to 10 years of age who switched to online learning due to the closure of their school facility on October 14 as well as other care-givers. (Examples of calculations of the care-giver´s allowance). The Senate passed and the President signed the bill.
compensations for self-employed/OSVČ, DPP, DPČ and small businesses (1-2 partners)
The Government approved compensation for self-employed amounting to CZK 500 per day for the period of the duration of the state of emergency. Extension of the period is possible. The support will apply to those for whom their entrepreneurial activity comprises at least 50% of their total income and their (sub)contractors whose income (at least 80% of it) depend on the entrepreneurs hit by the pandemic. Combining the bonus with another rescue program such as Antivirus wage compensation is not allowed. The proposal was approved by the Chamber of Deputies. Q&A about the compensation.
The Senate returned to the Chamber of Deputies with change proposals the bill on compensation for self-employed amounting to CZK 500 per day for the duration of the state of emergency. The change proposals included a compensation for regions of CZK 300 per citizen and the possibility to combine the compensation with the Covid-Rent program. On November 10, the MPs approved the initial proposal of a CZK 500 bonus fo self-employed per day, without a change proposed by the Senate. More about applications.
increase in Labor Ministry´s budget to support employment.
The Government approved an increase of CZK 3.65 billion in the Labor Ministry´s budget for expenses on programs to support employment. According to the Labour Ministry, the main reason for the increase is a rise in unemployment due to the coronavirus outbreak. Based on the latest ministry data, the August unemployment rate reached 3.8%.
Czech Republic joining SURE agreement.
The Government approved that the Czech Republic could join the guarantee agreement for the EU program on temporary support to mitigate unemployment risks in an emergency (SURE). This temporary scheme can provide up to 100 million euros of loans under favorable terms to member states to help finance the increases of national public expenditure from February 1 for measures such as compensation of wages, direct financial support to the self-employed people or the purchase of medical equipment at the workplace. SURE loans will be backed by the EU budget and guarantees provided by members according to their share in the EU´s GNI (for the Czech Republic this is 1.5% (cca CZK 10 billion).
obligation of medical examination for onboarding employees temporarily lifted.
With effect from October 19, throughout the state of emergency, the government ordered the abolition of periodic medical examinations, and onboarding employees may temporarily replace the official medical examination at the start of their employment with a declaration on their health condition (čestné prohlášení). The validity of medical reports is also extended.
economic measures supporting employment or individual economic revenue approved by czech authorities (lapsed)
proof of debtlessness.
According to an amendment to the Act on Employment the companies now will not be obliged to prove debtlessness for the duration of the state of emergency.
Antivirus C, waiver of social contributions.
The President signed regime C of the employment support program Antivirus. Regime C will waive payments of social contributions and contributions to state employment policy for June to August for companies with up to 50 employees that had been impacted by the government's coronavirus measures . The employer can apply for the support if he has not reduced the number of employees or decreased the wages by more than 10% compared to March 2020. The company cannot have received support from regime B of Antivirus program.
deferral of social contributions paid by employers.
The Parliament approved the deferral of social contributions paid by employers (24.8%) for May, June and July. Any postponed payment from these months would be due by October 20th. The proposal would decrease the interest rate for late payments from the current 18% p.a. to 4% p.a. (1% per quarter) for the period of May 1 until October 20. The measure would be applied automatically once companies do not pay social contributions by the 20th of the relevant month. The companies will not pay penalty which is not exceeding CZK 1,000. Newly payment and documentation on contributions has to be sent electronically, they cannot be paid by cash anymore.
care-giver´s allowance for employees and self-employed persons.
The Parliament and the Senate greenlighted the entitlement to care-giver's allowance for children under the age of 13 due to the closure of the school facility or for persons dependent on the assistance of another person classified at least at the level of light dependence, for the entire duration of the state of emergency. The Government later decided to increase the care-giver´s allowance to 80% of daily wage for employees (from 60%) and include those working outside employment relationship (DPČ, DPP, who will receive 605 of average wage). This is applicable retroactively from April 1 until the end of schools closure. The Chamber of Deputies approved the increase.
The authorities also approved this measure for the self-employed of the amount of CZK13,144. Self-employed are relieved from social and health insurance payments until August 2020. The Ministry of Industry and Trade will decide whether increase in the amount will also include self-employed persons.On May 18, the Government approved an additional CZK 2.5 billion to care-giver´s allowance for self-employed persons.
On May 20, the Parliament approved extending the period for the measure until the end of school year, June 30. From July 1, conditions for care-giver´s allowance will be applied according to the initial legislation.
current “Petadvacitka” program for self-employed.
The Deputies supported "Petadvacitka" program for self-employed (version approved by the parliamentary Committee for Budget on April 6) negatively affected by coronavirus outbreak which can apply for a bonus amounting to CZK 25,000 for the period of March 12 until April 30. The application could be submitted online via email.
This will be paid if the following conditions are met:
a) it is a self-employed person according to the pension insurance law,
b) the activity performed is the principal activity (under clearly defined conditions it may also be an ancillary activity),
c) the decrease in gross sales during the period from January to March 2020 was at least 10% compared to the period from January to March 2019 (if a business was set up after January 2019, the comparison counts for the first 3 months period after setting up the business),
d) the entity achieved at least CZK 180,000 of gross income in 2019 or at least CZK 15,000/month in case the business was set up after January 2019.
extending "Petadvacitka" for self-employed
The Chamber of Deputies rejected Senate change proposals to the Ministry of Finance proposal to extend the Petadvacitka program for self-employed persons impacted by the COVID-19 emergency measures to the Chamber of Deputies. The Senators proposed to increase the amount of allowed compensation to CZK 700 in May and to CZK 900 in June. The Senate veto was overriden by the Chamber of Deputies and if the bill is signed by the President, the compensation will be CZK 500 per day for the period of May 1 until June 8. The amount per affected person would total CZK 19,500. It is possible to apply for the compensation from May 7.
bonuses for health-care and social workers.
The Government paid bonuses to health care and social workers who have been on the frontline in the fight with the coronavirus. Health care workers received a total of CZK 1.1 billion and social workers received a total of CZK 5.2 billion.
new jobs within “Outplacement” project.
Four thousand employees that have been or are about to be laid off will have the opportunity to find job through new national project “OUTPLACEMENT” run by the Ministry of Labour through the regional labour offices, excluding Prague. The project is to be financed from the European Social Fund and Czech Republic state budget as part of the Operational Program Employment. The project will start on June 1, 2020 until June 30, 2022. The total amount of financial support stands at CZK 484 million.
employee´s protection in the event of employer´s insolvency
The Parliament also approved a proposal by the Ministry of Labor and Social Affairs to protect employees in the event of the insolvency of their employers. The amendment either partially or fully restores the ability of employees to recover wages due to them by an insolvent employer. This ability had been suspended by the lex covid justice measure adopted April 24. The new measure will enable employees of an insolvent employer to receive wages through the Labor Office of the Czech Republic, from April 24 until August 31.
compensation bonus for DPP, DPČ employees in effect.
Persons employed under DPP and DPČ contracts (contributing to sickness insurance) who could not work due to the Covid-19 pandemic are now eligible for a compensation bonus of 350 CZK per day for a period between March 12 and June 8. The new legislation entered into force on August 7.
“Rouškovné” for elderly citizens approved.
On September 2, the Government approved a one-off benefit in the amount of CZK 5,000 for 2.89 million elderly citizens and citizens with disabilities. The total amount should reach CZK 14.5 billion. On October 30, the Chamber of Deputies passed the bill in the third reading and was later approved by the Senate and signed by the President. The bonus was paid out in December 2020.
Crisis care-giver's allowance
For employees, for individual days in the period of closure of schools between December 21, 2020 and January 22, 2021.
7th October 2020
30th November 2020
15th September 2020
26th January 2021
26th January 2021