Government Measures Supporting Employment or Individual Economic Revenue

Government measures supporting employment or individual economic revenue, COVID-19, as of December 30

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 check for onboarding employees temporarily lifted during the state of energency (possibility to replace the check by an affidavit).

Recommendations.

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.   

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.

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 2020 unemployment rate reached 3.8%. 

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.

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 for self-employed per day, without a change proposed by the Senate. More about applications.

Antivirus support program extended.

The employment support program Antivirus has been extended for the companies affected by the Government measures until May 31, 2021 and from March 1, 2021 applies to employees who are with their employer for more than 3 months. The total amount paid/available per employer has been increased from €800,000 to €1.8 million.

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. 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. More.

The Government approved extension of Antivirus A, A Plus and Antivirus B wage compensation programs after April 30 until May 31, 2021.

Antivirus regime C lapsed. 

employment protection program "Antivirus" development.

The Full Manual for Employers.

The purpose of the Program is to compensate full amount or part of wage costs, including social contributions, in the form of employee wage reimbursement for the period of work-related obstacles caused by quarantine, emergency measures or their secondary impacts, all related to the spread of COVID-19. Compared with the initial proposal from spring 2020, the cap on compensation was raised and five types of eligibility criteria for reimbursement were reduced to two (regimes A and B).

Antivirus Regime A) Reduction of business operation and/or quarantine ordered: Closure or reduction of operation as a result of emergency measures or quarantine ordered by the authority. Regimes A-B in the initial spring 2020 proposal.

• in the case of quarantine, the employee receives a compensatory wage / salary of 80% (previously 60%) of average reduced earnings; 
• in the case of closure of the operation by a government order, the employee receives a compensatory wage / salary of 100% of the average earnings;
• state reimbursement of 80% of the super-gross wage (amount paid by the employer, including social and health insurance contributions) up to a maximum government compensation of CZK 50,000 (previously CZK 39,000) per employee.

Antivirus Regime B) Related economic difficulties: For businesses experiencing an obstacle to work on the side of the employer due to related economic difficulties as a result of the coronavirus outbreak. Regimes C-E in the initial spring 2020 proposal.

• depending on the type of the obstacle, the employee receives a compensatory wage /salary of 60-100% of the average earnings;
• state reimbursement of 60% of the super-gross wage (amount paid by the employer, including social and health insurance contributions, with a maximum government compensation of CZK 29,000.

compensation bonus for self-employed, small businesses extended.
The Government approved extension of the compensation bonus until the end of May 2021 for the self-employed and small businesses (s r.o. with 1-2 partners) at CZK 1,000 pre day and individuals working outside an employment relationship (DPČ, DPP) at CZK 500 per day whose revenues decreased by at least 50% compared to 2020 or 2019 (prior to the pandemic). 

increased compensation bonus for self-employed, small businesses.

The President signed at the end of February an increase of the compensation bonus for the self-employed and small businesses (s r.o. with 1-2 partners) whose revenues decreased by at least 50% from the current CZK500 to CZK1,000 per day.

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.

"ošetřovné" for emplyees during rotation model of learning. 

The Minister of Labor Jana Maláčová proposed that care-givers' allowance ("ošetřovné") will be paid also to parents whose children attend school under the rotation model of learning (one week at home, one week at school). For the week of distance learning, parents, if eligible, can apply for allowance of 80% of the daily wage base, starting from March 1. 

care-giver´s allowance for employees and self-employed persons.

On October 21, 2020 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 of up to 10 years of age who switched to online learning due to the closure of their school facility as well as other care-givers. (Examples of calculations of the care-giver´s allowance). The Senate passed and the President signed the bill. 

On October 16, the Government also adopted a care-giver's allowance for self-employed/OSVČ (lapsed on January 21, 2021), administered by the Ministry of Industry and Trade. More.

Minister of Industry and Trade Karel Havlíček said that it won’t be possible to combine both programs with the compensation bonus, but the combination with the Antivirus A, A Plus and B wage compensation program is allowed. Antivirus wage compensation programs were later extended until May 31. Antivirus A continues, Antivirus B ended on May 31.

motivation bonus for those undertaking quarantine reintroduced. 

On March 4, 2021, the Senate approved daily quarantine compensation bonus of CZK 370 per person - paid to those who have been ordered a quarantine or isolation between March 1 and April 30. How to calculate the amount. 

With effect from October 19, 2020, 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.