Czech Republic: Proposed allowance for child care, compensation bonus for entrepreneurs (COVID-19)

Relief measures provided in response to the ongoing COVID-19 pandemic

Relief measures provided in response to the ongoing COVID-19 pandemic

Relief measures are being provided in response to the ongoing coronavirus (COVID-19) pandemic (read more at the hyperlinks provided below).

  • “Care allowance” and self-isolation payment: The government has proposed restoring certain benefits for employees who are unable to attend work. Employees who care for children under the age of 10 years would be allowed a “care allowance” for the duration of any school closure or quarantine order affecting a child. This care allowance would also be provided to employees who care for disabled persons and children with special educational needs (even if over the age of 10 years of age). Persons working under agreements outside the employment relationship would be eligible for the care allowance, provided they have been covered by health insurance for at least the three preceding months. Read a December 2021 report
  • Compensation bonus for entrepreneurs: The lower house approved legislation (known in English as the “Compensation Bonus Act for 2022”) under a fast-track legislative procedure. The support is aimed at self-employed persons and individuals who are members of a limited liability company (LLC), and persons working for these entrepreneurs under agreements outside the employment relationships. The bill still needs to be approved by the upper house before it could be signed by the president and enacted into law. Read a December 2021 report
  • Subsidy programs to support businesses: The government approved the re-launch of some business-support programs, including (1) “COVID - Uncovered Costs” a subsidy program for businesses with sales that decreased by at least 30% and that generated a loss; and (2) “COVID 2021” a subsidy for those businesses that can prove a decrease in turnover of at least 30% for November and December 2021. Read a December 2021 report
  • Wage compensation for employers with employees in quarantine: The government extended and activated through February 2022 two programs to provide wage compensation to employers with employees in isolation or ordered into quarantine. Read a December 2021 report

 

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