Expanded Eligibility for Care Allowance in the Czech Republic

The Ministry of Labour and Social Affairs in the Czech Republic is proposing a significant expansion of the circle of people entitled to claim care allowance. This expansion will not only cover employees but also people working under a contract for work or job performance, entrepreneurs, and sole traders.

This change primarily aims to assist parents of small children. The Ministry argues that it would be highly unfair not to provide these policyholders with entitlements to all sickness insurance benefits, including the care allowance, especially if they pay the same amount of sickness insurance as everyone else.

The Ministry’s proposal anticipates this could affect more than 100,000 people annually. The financial impact on the state budget, estimated at around 24 million crowns, would be at least partially offset by the benefit of parents returning to work earlier, knowing that they will be guaranteed a gift if their child falls ill.

The Ministry of Finance has approved the proposal, although it has torpedoed many similar proposals from the Ministry of Labour in the past year. However, they stated that the proposing body must find the tens of millions within its budget.

On the other hand, employers have objections. They argue that applying for care allowance for employees working under a work or job performance contract and employees in small-scale employment will lead to an increased administrative burden on the employer without any compensation for this burden.

This is not the only change the amendment brings. Among other things, it would mean the abolition of the condition of a permanent residence for the second partner when it comes to long-term care, as well as the state of granting written consent to the cared-for person to provide long-term care. The amendment, which has now undergone a commenting procedure and is waiting for its settlement, must be approved by the government and parliament. The change could take effect as early as next year.