Labour market
Antivirus programme
Compensation will be provided to employers whose business activity is affected as a result of the pandemic. The contribution will be provided by the Czech Labour Office in two regimes:
Regime A. - Forced limitation of business operation and quarantine
- In the event of ordered quarantine, the employee receives a wage compensation of 60%
- In the event of closure of business due to the Government order, the employee receives a wage compensation of 100%
- Contribution to employers amounting to 80% of the wage compensation paid, max CZK 39,000/month/employee
- Programme within Regime A extended until the end of April 2021
Regime A. Plus - Forced limitation or significantly restriction of business operation by government crisis measures or extraordinary measures by the Ministry of Health or public health authorities
- Not for quarantine or isolation restriction (regime A. applies)
- Contribution to employers amounting to 100% of the wage compensation paid, max CZK 50,000/month/employee
- For costs incurred as of 1 October 2020
- Not available to employers who received other form of subsidy (e.g. COVID-Rent, COVID-Spa, COVID-Culture, etc.) over EUR 800,000 (newly EUR 1,800,000 or EUR 225,000 for agriculture and EUR 270,000 for fishing)
- Programme within Regime A Plus extended until the end of April 2021
Regime B. - Connected economical difficulties
- Obstacles to work on the part of an employer due to the ordered quarantine or childcare for a significant proportion of employees (30% or more) — the employee receives a wage compensation of 100%
- Limitation of the availability of inputs (raw materials, products, services) necessary for the activity — the employee receives a wage compensation amounting to 80%
- Reduced demand for services, products and other products of the company — the employee receives a wage compensation amounting to 60%
- Contribution to employers amounting to 60% of the wage compensation paid, max CZK 29,000
- Programme within Regime B extended until the end of April 2021
Regime C. – For small companies
- Waiver of payment of social security insurance paid by employers (24.8% of gross salaries) for months June, July, August 2020. The waiver is available only to companies with max 50 employees and under condition to maintain the number of employees and the level of wages at least at 90% compared to March 2020
- Possibility to defer payment of social security insurance paid by employers (24.8% of gross salary) for months May, June and July 2020 till 20 October 2020. The deferment will be subject to penalty for late payment which will be decreased to 1/5 of the statutory amount (instead of 0.05% for each day of delay only 0.01% will apply)
Kurzarbeit – support for maintaining an employment
- Programme Kurzarbeit shall replace the Antivirus programme once terminated via amendment of Act on Employment, thus, shall be of the permanent nature.
- In cases where there is a significant threat to the domestic economy or one of its sectors, for example as a result of the economic crisis, natural disaster, health threat or massive cyber attack, the government will be able to declare a so-called Kurzarbeit for affected employers.
- The employers will be entitled to compensation for employees who will stay at home as their employers will not have work for them due to crisis restrictions in the amount of 70 % of net salary (up to the amount of average salary).
- The employee could stay at home from one to four days a week due to an obstacle to work for a maximum of 12 months.
- During the time when the work is not assigned, the employer would pay the full amount of health insurance and the social insurance in the amount of 70 % of the net salary.
- The employer has to be seated in the Czech Republic and cannot pay-out dividends at the time of using the Kurzarbeit.
- Waiting for an approval by the Parliament (shall be discussed during Fabruary 2021 with aim to be effective as of 1 April 2021 at the latest).
- Allowance for taking care of children until the end of June 2020 if the parents do not send children to re-opened schools from objective reason.
- Allowance for taking care of children under 10 years or fulfillment of other conditions, in the amount of 60% of the daily assessment base for a maximum of 9 calendar days. For single people, the age limit for a child is 16 years and 16 calendar days. For school year 2020/2021 the allowance is in the amount of 70% of daily assessment base, min. CZK 400/day. Persons employed based on the temporary job agreements subject to social insurance are also entitled to the allowance. At the same time, the allowance is extended to persons who have to take care of the elderly or disabled person due to the closure of social facilities or quarantine. Extraordinary measures will be valid until 30 June 2021 at the latest.
- Increase of maximum allowance to employers for employing a disabled person from CZK 12,800 to CZK 13,600/monthly as of 1 October 2020.
- Direct subsidy for employers CZK 500/day/employee if the condition of a decrease in sales of the company/entrepreneur by more than 50%.
- Subsidy for employees in quarantine from CZK 208.50 to CZK 370/calendar day (up to 10 days). Should be applied since 1 March to May 2021 after Parliament approval.
Antivirus programme
Compensation will be provided to employers whose business activity is affected as a result of the pandemic. The contribution will be provided by the Czech Labour Office in two regimes:
Regime A. - Forced limitation of business operation and quarantine
- In the event of ordered quarantine, the employee receives a wage compensation of 60%
- In the event of closure of business due to the Government order, the employee receives a wage compensation of 100%
- Contribution to employers amounting to 80% of the wage compensation paid, max CZK 39,000/month/employee
- Programme within Regime A extended until the end of February 2021 (may be further extended upon government approval)
Regime A. Plus - Forced limitation or significantly restriction of business operation by government crisis measures or extraordinary measures by the Ministry of Health or public health authorities
- Not for quarantine or isolation restriction (regime A. applies)
- Contribution to employers amounting to 100% of the wage compensation paid, max CZK 50,000/month/employee
- For costs incurred as of 1 October 2020
- Not available to employers who received other form of subsidy (e.g. COVID-Rent, COVID-Spa, COVID-Culture, etc.) over EUR 800,000
Regime B. - Connected economical difficulties
- Obstacles to work on the part of an employer due to the ordered quarantine or childcare for a significant proportion of employees (30% or more) — the employee receives a wage compensation of 100%
- Limitation of the availability of inputs (raw materials, products, services) necessary for the activity — the employee receives a wage compensation amounting to 80%
- Reduced demand for services, products and other products of the company — the employee receives a wage compensation amounting to 60%
- Contribution to employers amounting to 60% of the wage compensation paid, max CZK 29,000
- Programme within Regime B extended until the end of February 2021 (may be further extended upon government approval)
Regime C. – For small companies
- Waiver of payment of social security insurance paid by employers (24.8% of gross salaries) for months June, July, August 2020. The waiver is available only to companies with max 50 employees and under condition to maintain the number of employees and the level of wages at least at 90% compared to March 2020
- Possibility to defer payment of social security insurance paid by employers (24.8% of gross salary) for months May, June and July 2020 till 20 October 2020. The deferment will be subject to penalty for late payment which will be decreased to 1/5 of the statutory amount (instead of 0.05% for each day of delay only 0.01% will apply)
Kurzarbeit – support for maintaining an employment
- Programme Kurzarbeit shall replace the Antivirus programme once terminated via amendment of Act on Employment, thus, shall be of the permanent nature.
- In cases where there is a significant threat to the domestic economy or one of its sectors, for example as a result of the economic crisis, natural disaster, health threat or massive cyber attack, the government will be able to declare a so-called Kurzarbeit for affected employers.
- The employers will be entitled to compensation for employees who will stay at home as their employers will not have work for them due to crisis restrictions in the amount of 70 % of net salary (up to the amount of average salary).
- The employee could stay at home from one to four days a week due to an obstacle to work for a maximum of 12 months.
- During the time when the work is not assigned, the employer would pay the full amount of health insurance and the social insurance in the amount of 70 % of the net salary.
- The employer has to be seated in the Czech Republic and cannot pay-out dividends at the time of using the Kurzarbeit.
- Waiting for an approval by the Parliament (shall be discussed during Fabruary 2021 with aim to be effective as of 1 April 2021 at the latest).
- Allowance for taking care of children until the end of June 2020 if the parents do not send children to re-opened schools from objective reason.
- Allowance for taking care of children under 10 years or fulfillment of other conditions, in the amount of 60% of the daily assessment base for a maximum of 9 calendar days. For single people, the age limit for a child is 16 years and 16 calendar days. For school year 2020/2021 the allowance is in the amount of 70% of daily assessment base, min. CZK 400/day. Persons employed based on the temporary job agreements subject to social insurance are also entitled to the allowance. At the same time, the allowance is extended to persons who have to take care of the elderly or disabled person due to the closure of social facilities or quarantine. Extraordinary measures will be valid until 30 June 2021 at the latest.
- Increase of maximum allowance to employers for employing a disabled person from CZK 12,800 to CZK 13,600/monthly as of 1 October 2020.
- Direct subsidy for employers CZK 500/day/employee if the condition of a decrease in sales of the company/entrepreneur by more than 50%.
- Subsidy for employees in quarantine from CZK 208.50 to CZK 370/calendar day (up to 14 days). Should be applied since 1 March to May 2021 after Parliament approval.
- Special bonus of up to CZK 370/day in March and April 2021 as the additional payment to sickness benefit to employees in quarantine (the amount of bonus and sickness benefit will be max up to the original salary). The employer can deduct these extra costs from social security contributions due for the respective month (subject to approval by the Parliament).