Current governmental provisions to support the economy

On Monday 29 November 2021, the Czech government approved several legal provisions that reflect the extraordinary measures taken by the Ministry of Health with respect to the latest wave of Covid-19.

Promotion of employment: The government approved an extension to the A regime of "Project Antivirus" (which will last until the end of February 2022) and re-activated the B regime (for the period running from 1 November 2021 until 28 February 2022). The Project involves the provision of state subsidies in respect of costs incurred as a consequence of undergoing Covid-19 quarantine.

Flat support for entrepreneurs: The Ministry of Industry and Trade will support firms through the "Covid 2021" and "Uncovered costs" subsidy programmes. These programmes concern firms whose turnover or sales have fallen by at least 30 per cent because of the pandemic situation. Self-employed persons will receive compensation support (this scheme was approved by Parliament on 2 December 2021, since this provision must be governed by law).

Tax relief: A flat waiver of VAT on filtration masks, respirators, filters, Covid-19 tests and vaccines has been extended by 31 December 2021.

Carers' allowance: Employees who will have to stay at home with their children because of quarantine may again receive an increased carers' allowance amounting to 80 per cent of their reduced daily assessment base (at least CZK 400). Employees who qualify are parents of children under 10 years. Also entitled to the concession are persons working on a contractual basis (under a Contract for Work or an Agreement on Working Activity), provided that they are payers of social security insurance contributions.

Financial contribution to employees in ordered quarantine: The government has decided to re-introduce an extraordinary contribution to employees in ordered quarantine. The contribution will amount to CZK 370 per day - but only for the first 14 days of quarantine; the government will authorise such payments for the period ending 30 June 2022. Employers may deduct the costs of the contribution from their social security insurance payments. This proposed measure has still to be approved by Parliament.