Factsheet for case CZ-2020-11/285 – Updated – measures in Czechia
|Country||Czechia , applies nationwide|
|Time period||Temporary, started on 12 March 2020|
|Type||Legislations or other statutory regulations|
Income protection beyond short-time work
– Extensions of income support to workers not covered by any kind of protection scheme
|Author||Soňa Veverková (Research Institute for Labour and Social Affairs) and Eurofound|
|Case created||05 April 2020 (updated 06 January 2021)|
Self-employed persons who were hit by the restrictions stemming from the coronavirus crisis receive from the Ministry of Finance of the Czech Republic (Ministerstvo financí České republky, MF ČR a compensation bonus of CZK 500 (€19 approx.) per every calendar day in the period from 12 March, when the state of emergency was declared by the Government, until 8 June 2020. This measure should compensate losses caused to self-employed by anti-coronavirus measures.
The total amount of the support for one self-employed is CZK 44,500 (€1,660 approx.). The request for the compensation bonus has to be filled to the Tax Office up to 30 June 2020. The Tax Office should be disbursing this bonus without a delay and that solely by a cashless payment to the account of the self-employed.
For the bonus of CZK 44,500 are eligible self-employed who are doing business on their own, based on a trade licence or, for example, perform a liberal profession (musicians, writers etc.), or are doing business in agriculture or on the grounds of other Acts of law (medical doctors, veterinarians, attorneys at law, etc.). The self-employment has to be the main activity, however, in some cases it can be subsidiary activity (for example, for beneficiaries of disability or old-age pension or parental allowance).
A statutory declaration should be also attached to the request, stating that the self-employed met the conditions for the compensation bonus and is not able to continue in business appropriately due to the health threats and/or government anti-crisis measures adopted with the occurrence of COVID-19.
No evaluation or information on effectiveness is available now, even the total number of supported self-employed. However, according to the survey of the Chamber of Commerce of the Czech Republic (Hospodářská komora České republiky, HK ČR realised in April 2020 among its Prague members, this measure has been evaluated by entrepreneurs as the best among seven others (COVID I and COVID II included) with the lowest level of bureaucracy.
As of 17 August 2020, in Pětadvacítka programme (for the self-employed), there were 950,893 applicants out of which more than 99.9% were supported by the total amount of CZK 20,171,257,500 (€771,662,490 approx.). For Compensation bonus for partners of small limited liability companies 80,440 partners applied (more than 99.9% with success) with the total amount of CZK 1,712,286,000 (€65,504,437 approx.) distributed. For Compensation bonus for persons working on agreements outside an employment relationship there have been 2,569 applicants out of which 94.6% were supported by the total amount of CZK 35,149,800 (€1,344,675).
One person or microenterprises
|Does not apply to citizens|
Company / Companies
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Consultation through tripartite or bipartite social dialogue bodies||Direct consultation outside a formal body|
Social partners' role in the implementation, monitoring and assessment phase:
This measure has been in particular supported by the Association of Small and Medium-Sized Enterprises and Crafts of the Czech Republic (Asociace malých a středních podniků a živnostníků České republiky, AMSP ČR which is a member of the largest Czech employers´association, Confederation of Industry of the Czech Republic (Svaz průmyslu a dopravy České republiky SP ČR .
AMSP ČR cooperated with MF ČR on the design of the measure to be as fast, flexible and simple as possible. Many of AMSP ČR´s recommendations and suggestions has been taken into the account by MF ČR, which probably makes this measure relatively successful.
Eurofound (2020), Compensation bonus for self-employed and certain shareholders, case CZ-2020-11/285 (measures in Czechia), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.