Czech Government’s Consolidation Package Reduces Employees’ February Pay

All employees in the Czech Republic will find several hundred to a few thousand crowns less in their February paycheck. This is due to the government’s consolidation package, which has reintroduced employees’ payment of sickness insurance. This change is now becoming evident in the employees’ pay.

The insurance amounts to 0.6 percent of gross income. People with a gross income of 25,000 crowns will lose 150 crowns compared to previous payments. Those who earn 50,000 gross will get three hundred less, and employees with an assessment of 75,000 crowns will lose 450 CZK.

“Employees will get less money so that they will have bigger problems managing their expenses for rent or food,” said Josef Středula, the head of unions. He pointed out that this particularly affects those who have not had their wages and salaries increased. “This is, for example, state administration,” Středula added.

Last year, the government froze state employees’ salaries, with only teachers and doctors seeing an increase. The coalition justifies the move by saying that sickness insurance paid by employees was abolished some time ago because they received nothing for the first three days of illness. However, this is no longer the case, so the government believes contributing is necessary. This is also intended to help stabilize the state treasury.

People receive sick pay from sickness insurance and maternity, paternity, or nursing benefits if needed.