The list of Government measures supporting employment or individual economic revenue. Last update May 25, 2020.
Government measures supporting employment or individual economic revenue, COVID-19, as of May 25
summary of economic measures supporting employment or individual economic revenue approved by czech authorities (valid)
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.
For both regimes there are conditions that have to be met by the employers applying for the contribution. Full Handbook for Employers how to fill the application in English to be downloaded here. The applications can be submitted from April 6, 12:00.
The Government extended the Unemployment Support Program Antivirus regime B until August.
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.
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.
employee´s protection in the event of employer´s insolvency
The MPs 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.