At Work in Prague


Unemployment Benefits in Prague


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The unemployment rate for the Czech Republic is around 9.6 percent. After remaining stable at 8 percent for most of 2010, the numbers jumped in December. That means that currently, there are about 561,000 people without work. The increase was not unexpected as the rate rises every December when freezing temperatures end construction and seasonal outdoor work. These numbers are on par with the rest of the EU which floats around 10 percent. These numbers are monitored by the Ministry of Labour & Social Affairs.

Benefits

If an employee loses their job and is seeking one, they are entitled to job mediation, re-training and unemployment relief. Benefits can be received if a suitable job has not been found within seven calendar days after he/she has filed an application.

Job Centres are places for the unemployed to find out about vacancies. It is also where people register with the Job Seekers Registry. Job seekers can fill out a request themselves, or receive aid from a labour officer. This allows users to receive job offers, state-financed health insurance and social security contributions.

The amount of unemployment benefits is calculated on the basis of average net income generated by the job seeker in his/her last employment. The benefits amount is 50 percent of this income in the first three months and 45% of this income in the remaining period. The maximum amount of support during the unemployment period is 2.5 times the amount of the minimum necessary for life. This is applicable to individual citizens older than 26 years of age on the day of submitting their application for unemployment insurance.

These benefits are available until suitable employment is found. That means, employment that will pay health and social security insurance and whose work week is no less than 80% of a regular work week and where the contract is for an indefinite or definite period of time, longer than 3 months. If the job seeker rejects a suitable job that is offered by the Labor Office and fits his/her qualifications, they may be deleted from the registry.

    Jobseekers are eligible for benefits until:
  • the age of 50 for a period of 6 months
  • the ages of 50 and 55 for a period of 9 months if the job seeker has been paying social insurance for a period of at least 25 years
  • 55 years of age for a period of 12 months if the job seeker has been paying social insurance for a period of at least 30 years

Foreign Workers

Foreign nationals have the same rights to unemployment relief if they hold a permanent residence permit or if they are EU citizens or have been granted asylum. For more information about being a foreign worker, consult the Foreign Employment site.

However, these rules do not apply to foreign nationals with a residency visa for over 90 days (for the purpose of employment or business) or with a long-term residency visa.

Update 27/01/2011



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